Q1 2020 Earnings Call
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First quarter fiscal year 2020 financial results conference call.
Time, all participants are not listen only mode. After the speakers presentation. There will be a question answer session to ask a question during the second only to press star one on your telephone.
If you require any further assistance please press star zero.
I like to hand, the conference over to your Speaker today, Tom Gelston Senior Vice President Finance and Investor Relations. Thank you. Please go ahead Sir.
Particularly good morning, everyone and thank you for joining us on the call today.
As a reminder, this call is being recorded.
This morning, Fuelcell energy relief for financial results for the first quarter fiscal year 2020, and the earnings press release is available on the Investor Relations section of our website Fuelcell energy Dot com.
Consistent with our process. In addition to this call and our press release, we have posted a slide presentation on our website.
This webcast is being recorded and will be available for replay on the company's website approximately two hours. After we conclude the call.
Before we begin our prepared comments, we have direct your attention to the disclosure statement on slide two.
Well the presentation and the disclaimer is included in the press release related to forward looking statements.
The discussion today will contain forward looking statements, including without limitation statements with respect to the company's anticipated financial result, and statements regarding the company's brand and expectations regarding the continued development commercialization.
Good thing of its fuel cell technology and its business plan.
These forward looking statements are intended to qualify for the safe Harbor from liability established by the private Securities Litigation Reform Act of 1995.
All statements made on this call today other than statements of historical facts.
Our forward looking statements and include statements regarding our anticipated financial and operational performance.
Forward looking statements made on this call represent management's current expectations and are based on information available at the time such statements are me forward looking statements involve numerous known and unknown risks uncertainties and other factors that may cause our actual results to differ materially from any results predicted assumed or implied by the forward looking statements.
I strongly encourage you to review the information and the reports we filed with the FCC regarding these risks and uncertainties and in particular those that are described in the risk factor section of our annual report on form 10-K, and the cautionary statements concerning forward looking statements disclosures in our quarterly reports on form 10-Q.
I should also reviewed the section entitled cautionary statement concerning forward looking statements in this morning's earnings press release.
Lastly, during this call will use non-GAAP financial measures when talking about the company's performance and financial condition in accordance with FCC regulations. You can find a reconciliation of these non-GAAP measures to the comparable GAAP measures in this morning's earnings press release and the reconciliation document posted on our Investor relations portion of our once.
Right.
Now turning to slide three.
I'd like to highlight some upcoming events on the Fuelcell Energys Investor Relations calendar, which are reflected although reflective of our ongoing and broadening participation in public discussion regarding clean energy and the role Fuelcell energy plays into space included.
In May we plan to live on May 12, we plan to present at the Oppenheimer emerging growth conference in New York.
On may 21st rescheduled present at the B. Riley FBR institutional Investor Conference in Beverly Hills, California, and on May 28, real presented the Cowen TMT Conference in New York.
For our call today I'm joined by Jason few Fuelcell, Energys, President and Chief Executive Officer, and Mike Kershaw Executive.
Executive Vice President and Chief Financial Officer, and Treasurer. Following our prepared remarks, we will be available to take your questions and be joined by other members of the leadership team.
I will now like to hand, the call over to Jason for opening remarks, Jason.
Thank you Tom before turning to slide for good morning, everyone and thank you for joining us on the call today.
Before we get started I would like to highlight how proud I am of the Fuelcell energy team.
This last six months has been a transformational period for our company.
And we've made significant progress on executing our plan.
Driven by our focus on backlog project execution.
Revenue generation cost containment and disciplined capital allocation.
I also want to take a moment to offer prayers appealing and support the any of our team members shareholder suppliers, So Americans and citizens around the world impacted by the novel Corrado virus known as covert 19.
We also offer support to those in the front line working on all of our behalf.
I will address the current impact to covert 19, and our company's response in more detail later in my prepared remarks.
As we refresh or for those of you who may be less familiar with our business. We have included a company snapshot on slide four that picks revenue for the most recent four year period fiscal year 2019.
Last year, we recorded $60.8 million of total revenue.
Three largest categories servicing licenses advanced technologies and generation, providing diversified shortness of recurring revenues to the company.
Additionally, I would like to draw your attention to some of the customers illustrated on the slide.
All of these customers have multiyear contracts with us we believe our existing customer base offers growth opportunities for company and that both current and future customers will benefit from the enhancements to our technology platform over the past few years, including far exceeded seven year stack.
Combined heat and power.
Microgrid applications onsite hydrogen generation and in the future with the commercialization of our solid oxide platform capabilities to deliver electrolysis and long duration hydrogen based energy storage.
Turning to slide five.
Fuelcell energys purposes to enable the world to liver life empowered by clean energy.
Our purpose guides our strategy our people and our work.
It also guide how we allocate capital the innovations we're focused on bringing to the market and the solutions, we delivered to our customers said simply because our collective DNA.
Turning to the first quarter fiscal 2020 on slide six.
I'm very pleased with our execution on several funds.
Including an increase in revenue over the fourth quarter fiscal 2019.
And our continued disciplined management of operating expenses.
Solid execution on both revenue and operating expenses helped us achieve a gross profit of 3.3 million for the quarter and improved gross margin.
And we continued to make progress towards strengthening our balance sheet.
We've also continued to execute on our powerhouse business strategy.
Crossed or global operating model, which I will cover in more detail shortly.
Along with executed on our project backlog, we have increased our sales presence in the marketplace.
Ramped up our sales efforts consistent with our purpose, we continue to demonstrate and extend our leadership and sustainability and environmental stewardship.
We continue to believe that carbon capture as necessary to make significant progress in reducing the global carbon footprint without asking most of the world to forgo many of the modern day comforts energy has brought to society or asking to developing parts of the world to hit the pause button.
Fuelcell Energys technology is currently the only known carbon capture technology that captures carbon while producing power at the same time.
Together with Exxon Mobil research and Engineering company.
Under our second joint development agreement.
We continue to refine our fuel cell technology that constant currency or two in industrial applications.
Coal and gas fired power plants, while also generating power from the fuel cell stack.
And finally, a few additional comments on how we're managing our business in the wake of the Corona virus.
First and foremost I'm thankful that as of now none of fuel cell team members around the world have reported having symptoms over the virus.
We pray for the continued health and safety of our global team.
We will continue to monitor the situation and our business practices daily and of course, the health of our employees customers and suppliers is our number one priority.
We appreciate the healthcare workers local communities and governments around the world or on the front line working to contain the Corona virus.
We remain vigilant and are taking precautions to help our team members remains safe and or monitoring supply lines and the potential impact of the krona virus our operations.
It goes without saying, however that we are complying and we'll continue to comply with all state federal and international governmental rules that dictate how we must respond to the virus.
Our improved performance as a company.
Prudent management of our balance sheet.
And positive feedback from our key stakeholders gives us confidence in our ability to deliver on our plan over the balance of 2020 and beyond.
And now I'll turn the call over to Mike to discuss our financial results in more detail.
Thank you, Jason let's begin by reviewing some highlights for the quarter shown on slide.
We executed well on our plan in the quarter and revenue met our expectations at $16.3 million. This is a 9% decline versus the prior year quarter, but what's going to increase sequentially versus the fourth quarter of 29 team.
To add more color on the revenue mix.
Generation revenues totaled 5.4 million, an increase of 268% over the prior prior year period, primarily benefiting from the additional revenue associated with the Bridgeport fuel cell Park project, which was acquired in 2019.
With the commissioning of the to Laurie I don't that project during the quarter. We now have 28.9 megawatts of operating power plants in our portfolio as of January 31st 2020, compared to 11.2 million as of January 31st 2019, increasing generation assets in order to benefit from the long term recurring cash flow.
Those remains a strategic focus of the company.
Means technology contract revenues increased by 15% to 5.2 million due to the addition of our joint development agreement with Exxon Mobil Research and Engineering company the balance of advanced technology contract revenues in the first quarter fiscal 2020 relates to the continued development of our solid oxide platform.
As we prepare to deliver electrolysis and long duration hydrogen based energy storage platforms.
Service from license revenues decreased by 52% to 5.6 million in key driver of the decrease was there were no module replacements during the quarter revenue recognized in the period includes license revenues of $4 million associated with our joint development agreement with Exxon Mobil Research and Engineering company.
The absence of any product sales in the quarter reflects our previous strategic decision to focus on utility scale power purchase agreements or PPA ways to grow our generation portfolio, rather than selling our projects outright as well to continuing situation with posco energy that is limiting sales in the Asian markets grow.
Gross margins for the quarter were 20.2% or $3.3 million, which represents a 249% improvement compared to the gross loss of 2.2 million in the prior year quarter.
Results for the first fiscal quarter 2020 benefited from our restructuring in 2019, which.
I will turn in lower manufacturing costs contributions from our larger generation fleet related to the acquisition of the Bridgeport project and license revenue recognized in the quarter.
Operating expenses for the first fiscal quarter 2020 decreased by 51% to $6.4 million compared to 13 million in the first quarter fiscal 2019.
Research and development expenses of 1.2 million and administrative in selling expenses of 5.3 million reflect lower headcount and overhead as a result of restructuring activities during fiscal 2019, and an increased allocation of efforts to revenue producing activity.
Administrative and selling expenses also benefited from a legal settlement of 2.2 million received during the quarter.
And finally on the slide we finished the quarter with backlog of $1.36 billion being an increase of 9% compared to January 30, Onest 2019.
Please turn to slide nine first quarter financial performance.
Net loss was 40.2 million in the first quarter of 22000 compared to a net loss of 17.5 million in the first quarter of 2019 net loss includes a $34.2 million noncash charge related to the change in the fair value of the liability associated with a war.
Grants issued to arrive in energy partners under our credit agreement discharge accounted for approximately 17 cents per share impact on the reported loss per share.
We're very happy with a significant improvement in both loss from operations and adjusted EBITDA, which reflects our progress over the last last nine months and improving our operational efficiencies lower operating expenses growing our generation fleet and executing on our joint development agreement with Exxon Mobil Research and Engineering company.
Loss from operations improved to 3.1 million in the first quarter of fiscal 2020, when compared to a loss for operations of 15.2 million in the first fiscal quarter of 2019, adjusted EBITDA totaled negative $222000 in the first fiscal quarter of 2020 compared to negative adjusted.
EBITDA up $12.1 million in the first fiscal quarter of 2019.
In the center of the slide cash and cash equivalents unrestricted cash and cash equivalents totaled 73.9 million as of January 30, Onest 2020, including 38.3 million of unrestricted cash 8.2 million of short term restricted cash and 27.5 million of long term restricted cash.
During the quarter, we drew down 65.5 million from our 200 million dollar credit facility with Orion Energy partners, bringing the total balance drawn under that facility. The 80 million and we received an additional loan of $3 million from the Connecticut Greenback.
Subject to lender approval, we have availability of $120 million under the Orion facility.
Subsequent to quarter ends we closed a tax equity sale leaseback transaction with Krestmark equipment Finance division of Medibank.
On the 2.8 megawatt to Laurie I on that project, we're thrilled to add krestmark as a financing partner to our commercial deployment platform.
Turning to the chart on the right side of the slide we finished the quarter with backlog of 1.36 billion up 9% compared to January 30, Onest 2019.
Backlog is comprised of generation backlog of $1.1 billion service and license backlog of $190.5 million and advanced technology contract backlog of $64.6 million.
In summary, we're very pleased with the progress we have made and look forward to continued execution against our backlog and future growth opportunities and with that I will now turn the call back over to Jason.
Thank you Mike.
Next on slide 10, I want to provide more insight on our accomplishments under our powerhouse business strategy, which we unveiled last quarter consisting of the following priorities transform strengthen and grow.
In fiscal 2019, and the first quarter fiscal 2020.
We undertook various restructuring initiatives to support the next phase of our business strategy.
We accomplished several foundational milestones, but recognize there's still work to do.
Thus, we are keenly focused on additional improvements while we are also shifting focus to growing our business achieving profitability and establishing our position of industry leadership.
We continue to focus on progressing our advanced technologies innovations across carbon capture hydrogen generation electrolysis and hydrogen based long duration energy storage.
As we detailed last quarter, we implemented a cost reduction and restructuring plan that resulted in annualized operating savings of approximately $15 million in fiscal 2019.
We plan to continue to deliver on a lower operating expense profile.
Moving to strengthening.
We're now focused on strengthening our business by optimizing capital deployment.
We will continue to focus on disciplined capital deployment, and securing lower costs long term financing and tax equity financing for completed generation projects.
The most recent example is the successful sale leaseback, both caleres biomass fuel cell project.
The pursuing commercial excellence over the past quarter, we have focused on strengthening our customer relationships and building a world class customer centric reputation by keeping close to the markets, we serve and responding to the needs of our customers.
We also remain focused on developing business opportunities for the company.
We are encouraged by the marketplaces response to our product solutions.
Our reinvigorated and broaden go to market peppers.
Our priority is to continue to provide a deep and strategic partnership through our existing customers and develop such relationships with future customers.
On operational excellence, we strive to execute on projects manufacturing and customer service.
I'm pleased with the current performance of our operational platform, particularly with the delivery of the to Larry project and the progress of our project at the United States May be base in Groton, Connecticut.
In addition to these projects, we continue to evolve our operational management processes and approaches with the goal of ensuring our ability to execute against growing future demand.
Related cost reductions, we continue to be focused across all aspects of our organization and operations on continued lean resource management and cost reduction opportunities, while adhering to safety and product quality standards.
These efforts have yielded a reduction in our run rate expenses, and we expect to continue to pace or additional capital deployment to revenue and financing over the strategic horizon.
As we grow.
We will also pursue the following growth strategies for sales growth, we will seek to increase product sales to.
And power purchase agreements with.
Strategic customers and prospective customers around the world.
We intend to build alternative distribution channels, when new projects by exploiting the differentiating capabilities of our products grow service revenues and further reduce the total cost of ownership for our customers.
I am encouraged by the positive change in the tone and tenor of our conversations with both customers and prospective customers over the past six months.
We're very active in CHP micro grid biofuel hydrogen and power generation conversations across customer segments energy applications in global geographies.
We will continue to innovate.
We will continue to focus on increasing product life reliability and exploiting our competitive advantage on multi fuel use applications are scalable platform and multi feature capabilities.
In addition, we intend to develop and commercialize our advanced technologies platforms.
Cross carbon capture distributed hydrogen production and long duration hydrogen based energy storage.
On solution leadership, we will seek to capitalize on our core strengths meeting customer needs for power and combined heat and power utilizing available bio fuels for power production, which contributes to the reduction of greenhouse gas emissions by eliminating the need to flare biogas and eight.
Really microgrids and generating distributed hydrogen for industry transportation, and ultimately energy storage and power generation.
We continue to believe that education is important.
And that governments and companies like Fuelcell energy must work together to pursue a transition to clean energy that continues to advance societal progress while intelligently addressing climate change.
We're working to ensure that policy makers environmental advocate and consumers understand the environmental increased security and enhance reliability benefits realized by deploying fuelcell energy platforms.
It is important to note.
That transformation strengthening and growth of our business is happening.
And we intend that it will continue to happen.
Including in international markets.
We are working to regain access to the Asian markets.
Including taking a recent steps to ensure we can realize the intended benefits of our license agreement with Posco energy.
There is a growing global appreciation for our technology solution and we intend that international growth will be a part of our go forward story.
Turning to slide 11.
As I just outlined execution on project backlog is key to our long term success.
I want to take a quick moment to highlight progress on projects that are nearing the mobilization phase which consist of our 7.4 megawatt project in Yapping Long Island, New York.
Our 14.8 megawatt project in Derby, Connecticut, and our 1.4 megawatt bio gas project at the San Bernardino municipal wastewater treatment facility.
Our project management teams have been hard at work, establishing the detailed timeline for our APC contractors working to put in place all necessary permits side approvals civil site and interconnect divide required for us to commit on site construction.
On this slide we've provided visual renderings for what two of these projects are expected to look like upon completion.
We are approaching the time when site work commences and these distributed power projects begin to take shape.
Additionally, we continue to focus on our advanced technologies, including carbon capture technology under our joint development agreement with Exxon Mobil Research and Engineering company.
Earlier this month, we announced that the California public Utilities Commission confirmed Fuelcell energys understanding of the buy on that program rules, allowing us to proceed with the deployment of our shores hydrogen Tri generation platform at the Toyota facility located at the Port a blog.
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The 2.3 megawatt power plant platform will be carbon neutral and enable to meet the energy needs of Toyota's onsite facilities at the port in long beach with excess electricity going to the southern California grid.
Hydrogen generated by our Trident platform will provide the carbon free fuel needed to power Toyota zero mission fuel cell vehicles.
Additional involved environmental benefits delivered by our Trojan platform include improved air quality and reduce water usage.
The installation also supports the growing demand for hydrogen infrastructure and transportation applications leveraging fuel cell technology.
Turning to slide 12.
We felt it was important to provide longer term targets and goals that at context to our strategy.
With a time are rising looking out over the next few years, we are targeting by fiscal year 2022.
Increasing our generation portfolio by 100% from the 26.1 megawatts, we had at the end of fiscal year 2019.
Delivering double digit percentage compounded annual revenue growth rate over our revenue amount at the end of fiscal year 2019, and achieving positive adjusted EBITDA.
Each target is tightly linked to execution of our project backlog, which drives recurring revenues through power generation and long term service agreement revenues.
We're also focused on future goals, including our aspiration to drive our cost per kilowatt hour lower to retrieve grid parity in even more markets than we do today.
Fundamental to our strategic business model is eventually delivering recurring positive EBITDA as well as consistent positive free cash flow generation.
And as I've said in the presentation, we're focused on delivering and appropriate return on invested capital with the ultimate goal of delivering financial returns.
For our stockholders.
The keys to achieving these goals or execution on private construction and achieving commercial operation, which delivers recurring revenue for the company.
Winning new business globally to replenish and grow our project pipeline.
Continued cost discipline, achieving our strategic initiatives.
Continuing to promote a culture of accountability and optimizing capital decisions among our portfolio of choices.
On slide 13, I will conclude my prepared remarks today.
With the highlights for Fuelcell energy.
Fuelcell energy has strengthened its balance sheet with our credit facility with a ride energy partners and our prudent balance sheet management.
We expect this 200 million dollar credit facility to help us deliver long term projects that generate long term recurring revenue for the company.
In the future.
We have an organization.
Committed and focused on project execution, achieving financial milestones operational efficiencies and living our core purpose.
The breadth and depth of our technology portfolio is second to none.
And we are implementing our powerhouse business strategy to transform strengthen and grow our company for the long term.
In summary, we delivered a strong quarter compared to where we were over last year.
We're more excited than ever about our progress the opportunities that lie ahead, our ability to successfully navigate headwinds and the roll our shores source platform plays in the global energy future.
This concludes our formal remarks before we begin the queuing I want to introduce a few more team members that have join Tom Mike and me.
We're joined by Michael is ASCII VP and CFO.
Tony Leo MVP and CTO.
Joe Crossman SVP finance.
Then Toby SVP direct sales and customer service and Frank will Act SPP sales Americas.
I will now turn it over to Julien to begin tier one day.
Thank you as a reminder to asked a question. Please press star followed by the number one.
Your first question comes from Eric Stine from Craig Hallum. Your line is open.
Good morning, everyone.
Good morning, Eric how are you.
Fine you.
Doing great. Thank you good.
Well just wanted to dig more into the product some of the plans there obviously your.
You don't fully committed and have made very good progress on the generation side, but by no product.
Product backlog and product inroads have been lacking so maybe.
Just talk about some of the steps you're taking whether it's with key customers he on Toyota et cetera.
And just maybe some some milestones or signposts, we should look for going forward.
Great. So do you think about what the work that we're doing with E. on which is really targeted.
The European marketplace, there is that something that we're doing there that.
It is different than in the U.S. market, we have our sub megawatt platform there both at 250 kilowatt at afford to kilowatt platform.
That we seek fits the European market quite nicely. In addition to the fact that we will continue to sell.
Megawatt plus platform. There also so I think you know the milestone I would say to look for there is our.
You know opportunity to win from new business in Europe beyond the current set of customers we serve today.
In terms of product extensions and what we're doing product wise I think if you look at.
The Toyota project, that's an example, where you're going to see that pretty significant extension to our product platform, where we're doing actual onsite hydrogen generation that will support toyota's efforts to both from a feeling standpoint of.
Large trucks in addition to fuel cell vehicles coming off the ships through the port.
Thank you know groundbreaking there would be a a milestone I would point to you to look at in terms of our extending our product portfolio in that regard.
Mike would you add anything to that.
The only other thing as I said in my prepared remarks, Eric Obviously Korea has been a bit of a bit of a headwind.
But we are working diligently to get back into that market and obviously those opportunities are quite large as well.
Yes, I mean, that's a I guess a good segue to my next question I know that there's been some back and forth and some recent developments with Pasco.
And maybe maybe there's not anything you can give just wont wall things are developing near term, but if there is.
That wouldn't be great and I mean, you're clearly positive about that market just.
Wondering whether it's with hospital or some of the other opportunities you've talked to you talked about in the past how you see that playing out.
Yeah, we hedged as you know we have.
We issued an 8-K in terms of where we are with Posco today, we are working through the process that is consistent with our agreement to try to achieve resolution.
As we speak about the market any opportunity there were probably not at a point, where we can say more about where we will end up but we remain very positive about the market in South Korea, and Asia overall, and we intend as we've stated to aggressively.
Pursue being back in those markets to support our future growth as a company.
Yep, Okay, and then last one for me just and maybe I missed this but on the fiscal year 22 targets.
And the three kind of goals you have there are you.
Are you factoring in product.
Revenue at all into that or.
You know the positive adjusted EBITDA I would assume that that's largely from generation.
That is largely from generation that is correct. We do intend as we said to be back in the market from a product sales perspective, but this is largely driven by generation.
Okay. Thanks, a lot.
Thank you.
Yes.
Your next question comes from Colin Rusch from Oppenheimer. Your line is open. Thanks. Thanks, So much as you know I know it's early days here, but you know as you look at your your construction pipeline and the products that you have gone.
What can you say about resiliency of your timelines in the face of work shortages or stoppages.
Processes around permitting and approvals things like that at this morning.
So far and planning process started much insight.
So the color maybe I'll start and then I'll I'll turn it over to Mike was asking it maybe add some additional comments.
As it relates to our in flight projects, we still feel very good about.
Not only the progress we're making about the a plan on a go forward basis to complete those projects on the current timeline.
We acknowledge and recognize that those projects could be impacted by actions that.
State or federal governments make take with respect to work work stoppage.
But as of today, we have no indication that we're going to be impacted from a project development standpoint.
Mike would you had anything to that Mike was asking.
Thank you very much and call. It. Thank you for the question.
All I would add in addition to Jason's comment is we have a very existing robust corporate operational risk management program.
And we'll use that program to manage all of the project execution phases of all projects that are in project backlog.
Based on our current saw was inventory positions of the existing current direct labor workforce.
The b the key actions that we've taken relative to our supply pipeline I feel very confident that we're well positioned to continue to make progress on the items that you listed relative to project execution and continue on through the construction phases and overall project execution we are.
We're well positioned at this point and feel confident we'll be able to efficiently and effectively execute on those projects going forward again, we'll continue to monitor very closely the situation and as things develop.
Okay.
Great and then I guess the second question is really around the supply chain. Sir you may have just answer that but in terms of equipment do you have on had been the additional pieces that you need to bring in how much it how many of those sources, our domestic and how many of them our international and I, just really with the question as.
As the inventory that you need spring and outside of the U.S. to like these projects and others maybe.
Just a little bit extreme here in terms of asking the question but.
How many things you need to bring in from outside the country.
No I perspective, it's actually complete these projects.
Collin. This is this is Michael so again the way I would the way I would characterize that is our assessment is we have low to moderate supply risk relative to the existing projects in backlog, we have a fair amount of equipment in finished goods inventory that we are well positioned.
To deploy into the project when ready and the balance of the equipment and direct materials that are needed to execute on the project are either in semi finished goods inventory or well along their way into supply pipeline relative to no. Our external supply chain, we have a very very balanced supply.
Chain and what I would say is a we've taken some key strategic actions and predominantly the bulk of our direct materials are being furnished on supply domestically here in the United States with a very small percentage of our content coming.
Globally.
Perfect. Thanks, so much Chris.
Thank you.
As a reminder, if he would like to ask the question. Please press star followed by the number one. Your next question comes from Jeff Osborne from Cowen and company. Your line is open.
Thanks, Good morning, a couple of questions on my end first of all Mike on the 62 and a half million that you drew down.
Which which projects are those four is that all for the growth facility or or something else.
Good morning, Jeff So the we drew down 65, and a half million in the quarter on the second to draw on our Ryan credit facility and it and.
Predominantly that's targeted at at two projects, but we also refinanced short term debt.
In.
In conjunction with that draw down, but the two projects.
That are under the Orion facility as we sit here today are the Groton Sundays project that has a C or D date of July of this year and then the the light but.
Projects, which has a CRB day in and 21 of next year.
If you if you recall.
If we talked about would've been in the fourth quarter call I think we talked about moving roughly 34 mood or so of short term debt into long term debt as part of.
The way we've utilized the funds from Orion.
HM Okay.
That's helpful. And then speaking of the life of projects can you just give us an update.
If there is one on the two other projects that I don't think assign PPH, but that you have been awarded in the past.
Yeah as you know weve the those two products do not have signed PPH, yet we continue to work with a light but to try to advance those those projects, but have not time pp A's as of yet.
Is there.
Something from the outside World, we should be watching.
You know either an RFP process that would lead to that or is it.
Any sense of where you can share maybe what the hold up is.
Yes.
There will be an RFP process is not part of the process. It's just really you know trying to work through where both licenses and some of the policy and legislation things that are being considered in the state in New York, but the other than that we'd there's no other.
Indicator I would tell you to look at.
Okay, and either for yourself, Jason or maybe for Tony is there anything you can share as it relates to the Toyota facility in long beach on the hydrogen side, how we should think about the cost of generation relative to say electrolyzers using low cost renewables.
Certainly an intriguing assets that you have there and a new vertical of growth as part of your platform.
But just given sort of the surgeon interest among investors as well as the broader hydrogen economy and Electrolyzers I was just curious how we should sort of benchmark your cost I certainly appreciate the lower water usage that you highlighted but any any other facets you could share would be helpful.
Yeah, the cost of 100 production, what we call Tri generation is reduced by the fact that we have the second revenue stream for power and indications. This feed in tariff is pretty significant revenue stream. If you had to pay that much for power for electrolysis project.
The expense of hydrogen so obviously varies depending on power price and fuel fronts, but but like carbon capture the fact that you're producing power, while you're making hydrogen really enhances the economics.
That's good. Thank you that's all I had I appreciate it.
Thanks, Jeff.
We have no further questions I turn the call back over to Mr., Jason few for closing remarks.
Drilling and thank you.
I want to conclude our call today by rig reiterating that our thoughts and prayers go out to those around the world impacted by the quota virus and we provide our complete support to those on the front lines. I also want to express again, how proud I am of the many accomplishments achieved by the Fuelcell energy team in the short timeframe.
Since I joined the management team.
I also want to thank our customers are valued partners and our stockholders that invest both their money and their trust in our team.
I'm very excited about the future and the opportunity Fuelcell energy has to deliver on its purpose to enable the world deliver life and power by clean energy.
In closing I want to thank everyone for participating in our earnings call today and for your interest in fuel. So energy. If you have any follow up questions. Please don't hesitate to reach out to us.
Thank you very much and enjoy your day.
Ladies and gentlemen. This concludes today's conference call you may now disconnect.
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