Q1 2021 Gevo Inc Earnings Call
[music].
Hello, and welcome to <unk> first quarter 2021 earnings conference call.
My name is to Wanda and I will be your operator for today's call.
At this time, all participants on a listen only mode.
Later, we will be conducting a question and answer session.
Please note that this conference is being recorded.
I would now like to turn the conference over to Geoffrey Williams D. G Bowles, Vice President General Counsel and Secretary.
Please go ahead Mr. Williams.
Good afternoon.
Afternoon, everyone and thank you for joining <unk> first quarter 2021 earnings conference call.
Like to start today by introducing the participants from the company.
With us today is Patrick Gruber, <unk>, Chief Executive Officer, and Carolyn Romero Gee, that's chief Accounting Officer.
Earlier today, we issued a press release that outlines the topics we plan to discuss.
Copy of this press release it is available on our website at Www Dot <unk> Dot com.
I would like to remind our listeners that this conference call is open to the media and that we are providing a simultaneous webcast of this call to the public.
A replay of today's call will be available on <unk> website.
On the call today and on this webcast you will hear discussions of certain non-GAAP financial measures non-GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in accordance with GAAP.
Reconciliation of these non of these non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in the press release distributed day, which is available and posted on our website.
We will also make certain forward looking statements about events and circumstances that have not yet occurred, including but not limited to projections about <unk> operating activities for the remainder of 2021 and beyond.
These forward looking statements are based on management's current beliefs expectations and assumptions.
Are subject to significant risks and uncertainties, including those disclosed in <unk> form 10-K for the year ended December 31, 2020, which was filed with the U S Securities and Exchange Commission and in subsequent reports and other filings made with the SEC by GMO, including <unk> quarterly reports on form 10-Q.
Investors are cautioned not to place undue reliance on any such forward looking statements.
Such forward looking statements speak only as of today's date and <unk> disclaims any obligation to update information contained in these forward looking statements, whether as a result of new information future events or otherwise.
On today's call Pat will begin with a discussion of <unk> business developments. Carolyn will then review <unk> financial results for the first quarter of 2000 22021.
And following that presentation, we will open up the call for questions I will now turn the call over to Pat.
Thanks, Jeff.
We're on track to accomplish our goals for this year.
The engineering, a net zero one is on track.
The debt solution with Citi debt Finance net zero, one is actually ahead of schedule.
We still have a lot of work to do but so.
So far the net zero one project is looking very good.
Yeah.
We broke ground on.
On our R&D project should come online next year. This project is targeting production of 355000 million btu per year and should generate free cash flow for jabil.
Of approximately 9% to $16 million on an annualized basis beginning in late 2022.
Ken <unk>, our Chief commercial officer, he has managed to increase our customer contract pipeline by several fold.
We now are discussing and negotiating upwards of $10 billion I'll take or pay off take agreements.
On a revenue basis recall that for each 45 million gallons of contracted product sales, which is the current approximate designed capacity of our net zero plans to some of the anticipated product sales revenue during the expected take or pay contract terms of six to seven years should be about $1 $5 billion.
It's real money real business.
So if we're able to.
Inc. Some or all of the contract center pipeline. It would mean several more additional plants would be needed to be built.
These take or pay contracts are non trivial to obtain because they require the customer to back it with their balance sheet or some other credit support method.
We expect to announce the customers' volume so when we can after the contracts are signed I think it is likely that we could have more than one debt cereal plant being built at the same time in the coming years.
Okay.
Based on our current modeling assumptions, we believe that the EBITDA for a net zero plant should be more than $100 million per year. Once operating we believe that subsequent net zero plants would likewise likewise bobble out to be in that same range as we get more plants.
Worked with take or pay contracts, so it'll be interesting to see how strategic investors in wall Street. The U S. We would hope.
Debt.
The increased visibility into more potential cash flow streams.
Would result in better recognition of value for <unk> and its shareholders.
Now with strategic investors simple slightly different perspective, as the tangible demand in the form of take or pays becomes bigger then it becomes even more undeniable as to the potential for our business the more take or pay contracts weak the more net zero plants, who will lead the more attractive we should become two strategic investors.
Next I wanted to address questions from several investors about one of our proposals and our definitive proxy statement for our annual meeting of shareholders to be held on June 19th 2021.
The questions are specifically on proposal number four which is an amendment to our amended and restated certificate of incorporation to increase the total number of authorized shares of common stock.
This proposal seems to have created confusion for some stockholders, namely a reaction that this proposal means that there will be immediate dilution to current stockholders.
Proposal number four is asking stockholders to approve an amendment to the company's certificate of incorporation to increase the number of authorized shares of common stock from $250 million to $500 million. This increase doesn't mean, we are issuing these new shares immediately.
I want to be clear that we're not asking shareholders to approve an offering of common stock at this time.
What we're doing here.
It's important to remember that Jabil has used most of its existing authorized shares of common stock over the years.
The board of Directors believes it is in the best interest of the company to increase the number of authorized shares of common stock in order to give us greater flexibility in considering or planning for future potential business needs, including but not limited to the potential strategic transactions.
<unk> partnerships.
Business combinations.
Of course financing the construction of accretive production facilities as well as other general corporate transactions.
Now I will turn the call over to Carolyn who will take us through the financials Carolyn.
Thank you Pat.
<unk> reported revenue in the first quarter of 2021.
<unk> 1 million as compared to $3 $8 million on the same period in 2020.
During the first quarter of 2021, there were no hydrocarbon revenue compared with <unk> one.
In the same period in 2020.
Hydrocarbon sales decreased because of lower production volume at the South Hampton Resources, Inc facility in Silsbee, Texas.
During the first quarter of 2021, no revenue was derived debt delivering facility from ethanol sales and related products compared with $3 $7 million during the same period in 2020.
As a result of unfavorable commodity environment. During the three months ended March 31 2020.
We terminated our production of ethanol and distillers grains, which resulted in no sales for the current period.
Cost of goods sold was $2 million in the first quarter 2021 versus $8 1 million in the same period in 2020.
Cost of goods sold included approximately <unk> 9 million associated with the maintenance a little over on facility.
And approximately $1 1 million and depreciation expense.
Gross loss was $1 9 million for the first quarter of 2021 versus $4 3 million for the first quarter of 2020.
Research and development expense increased by $2 8 million during the first quarter of 2021 compared with the same period in 2020, due primarily to an increase in personnel and consulting expenses.
General and administrative expense increased by $1 2 million during the first quarter 2021 compared with the same period in 2020.
Due primarily to an increase in personnel and consulting expenses.
Preliminary stage project costs increased by $2 6 million during the three months ended March 31, 2021, compared with the same period in 2020, due primarily to increased consulting and research and development expenses related to our R&D and net zero projects.
Within total operating expenses for the first quarter of 2021, we reported approximately <unk> 8 million of noncash stock based compensation.
For the first quarter of 2021, we reported a loss on operations of $9 $9 million compared to 8.0 million for the same period in 2020.
In the first quarter 2021 cash EBITDA loss a non.
Non-GAAP measure that is calculated by adding back depreciation and noncash stock based compensation to GAAP loss from operations was $7 $8 million compared with $6 2 million in the same quarter of 2020.
There is no interest expense for the three months ended March 31, 2021, a decrease of <unk> 5 million as compared to the same period in 2020 due to the conversion of all of our 12 per se convertible senior notes.
Due 2000 22021 common stock during 2020.
For the first quarter 2021, we reported a net loss of $10 $1 million or a loss of five cents per share on a weighted average shares outstanding of $183 million 566524.
This compares to a loss of $9 $3 million in the first quarter of 2020 were a loss of 64 cents per share based on weighted average shares outstanding of $14 million 472798.
In the first quarter 2021 <unk> recognized net non cash loss totaling <unk> 1 million due to changes in the fair value of certain of our financial instruments, such as wines and embedded derivatives, adding back. These non cash losses resulted in a non-GAAP adjusted net.
A loss of $10 9 million in the first quarter of 2021 on a non-GAAP adjusted net loss per share of five cents. This compares to a non-GAAP adjusted net loss of $8 5 million in the first quarter of 2020 or a non-GAAP adjusted net loss per share of five 959 cents.
Now I will turn the call back over to Pat to wrap things up.
Thanks, Carolyn so that.
Overall things are on track and looking good we are the catalysts that are coming up between the offtake agreements as such.
I'm pretty pleased with where we are let's open up this call for questions operator.
Thank you.
Ladies and gentlemen, as a reminder to ask a question you will need to press Star then one on your telephone.
To withdraw your question press the pound key.
Again, Thats star one to ask the question. Please.
Please stand by while we compile the Q&A roster.
Our first question comes from the line.
<unk> <unk> with H C. Wainwright your line is open.
Thank you good afternoon, everyone I appreciate taking my questions.
Did you see that you are pursuing $10 billion worth of off take agreements.
We're more than pursuing them, that's what's being worked on index actively negotiated in various forums. That's a threefold increase you. This is a game changing kind of a.
Thing for us considering where we had been and what we're doing people are figuring out that we have a solution here. So it's going to be exciting and we're going to be in a position of having to supply products for multiple plants at once to Dan. Good thing, we did a greenfield cookie cutter plant and are designing it the way we're doing it we got okay. It was foresight lucky.
We did good and my people did a really good job. So it's kind of exciting space, we're in and I just.
As always I never know when we're going to get the darn agreement is done some of these are really big deals and with not that many customers and so they will take time and but we're stacking them up in multiple net zero plants.
Pretty exciting.
Are these agreements.
Are these potential agreements with the airlines or the players and sort of your middle of the revenue chain who are these.
Humans.
We wish you to do.
I think it would be fair to say I can't comment on that stuff like that we are sworn to secrecy about these things I know we get this question on cyber and wants to tell US who is it early we can't do that now.
There and but I will say this it's a mix of those.
Okay.
Just asked me about it's a mix.
And then I guess lastly, obligatory feedstock related question.
As you are getting visibility into the size of these opportunities.
How are you thinking about managing feedstock requirements et cetera.
Well, what's interesting is because we just carbohydrates or feedstock stock. These are incredibly abundant cell for example.
You know the corn supply here in the U S is what $14 2 billion bushels, a year ago, and its increasing and we use a carbohydrate portion on a portion we separate out the protein.
<unk>.
1 billion gallons would require several percent.
Corn supply and of course, that's really not an accurate count because we are separating its closer and accurate hub, we're separating out all the protein that goes with it. So it's a it say theres more than a feedstock availability, especially when ethanol lost me a little bit of a comeback, but yes on all <unk>.
Supply has gone down a bit.
So we're in pretty good shape in terms of feedstock and that puts us on a comparative advantage compared to some of the other feedstocks that are out there for renewables of course around the world, It's not corn in Germany, we would work with something else and in India, It's definitely molasses and things like that so and I think in South America as we get going.
On you'll see US work with my last with some other products. So carbohydrates are great feedstock, because they're so ubiquitous and such large amounts, especially compared when one is looking at oil seeds or one of those other things.
So just to.
These net zero plans go into essentially have to be in the U S. There could be.
<unk> geographies.
Ken It's a concept so what we're doing is building plants and building on the renewable energy infrastructure that goes with them because of the way we process things, we have the ability to take and put like a water treatment plant and put that Washington planting and it makes biogas, we use that to do the thermal demand for the plant displacing the fossil based natural gas of course, we want renewable or Tricia.
City electricity is the thing that causes and between existing natural gas that is the thing that causes the bulk of our footprint. This is true of all energy when we're trying to drive the footprint down on greenhouse gases is about electricity. It seems to be lost on the world at large.
And the same thing is true with the natural gas.
It's thoughtful based both of them.
Electricity, 60% fossil based on this country and around the world. It's about the same so there's an enormous amount of work to do so we think of it as every time, we do a net zero plant will have done something about renewable energy and in fact, our company is in fact, a developer of renewable natural gas that's a fact.
A co developer of when we did it a project last year, we're going to another round, our net zero client and what we're going to continue to be active in the renewable energy and we used a different mentality about what needs to be done to solve these greenhouse gas problems and make money, while we do it.
Understood.
On the green bonds for the RMG.
You issued.
Is that allowing you to be on lower interest rates versus you know on regular bond I guess.
Hey, Lynn are you on the line Lynn.
There was an interest rate and I thought we published it it's been it's public stuff. So it's there.
I'll check that moving up.
Yes.
Robin yet.
<unk>.
I guess my other question was around how.
How much do we need to factor with respect to the interest burden related to disciplined I can pick up also.
But you said you ended up there.
Statements on this will begin in Q3 run rate.
Yes, so what'll happen is.
Yeah. So.
Yeah, and what we'll do is you'd have to interest you should do is call in and talk to him and find out more color on it.
And the thing that I'm paying attention to is that want this plant built in again to complete by the end of year on one of the operational in the first quarter of next year. So that we can get all of our qualifications done to get the stuff certified so we can start generating cash and get that done I want the money in the door by the end of <unk> in the third and fourth quarter next year whenever that timing works out.
And.
I want the cash coming in the door and when we're talking about $9 million to $16 million of cash that might sound small to people, but day, that's like real money. We wanted and that's after you know the debt service on all the rest. So you know thats I want it.
So thats whats little Delta what accounts for the Delta between the name to <unk> net.
Like what could be the difference between your coming in at 9 million were 16 Union.
The way you have to go through California, and get certified as to what exactly that pathway is when you look at your dairies and they'll judge them in some way and we're trying to give or be conservative. So on the in the worst case scenario. We say it's nine we think it's more like 16, and so we're just giving ourselves a range. So we can hit.
Something thats reasonable, but you got to go through this whenever you got to go through the certification process, which is normal you got to get their blessing to say yep that's legit.
It depends on how they're looking at things at that time and because it's in future world.
We just say, okay. We plan on nine hoping at 16.
As the cash out on the revenue side and what that means on the revenue side is it's like $23 million to $28 million revenue.
Okay. So this isn't that get narrowed down once you get the certifications et cetera.
While we would know we would know and then we will know if if if if they do what they have done in the past it's the high side.
Okay understood.
And I guess my last question was around you know what the expected cash flows would be as you exit 2021.
I don't know if from Amazon nine, but I can follow up on them.
Yes, I follow up it may be that we have some long lead time items I think we talked about that once before where we may have to put money down on long lead equipment for net euro plants that might be you know tie up 20 million bucks or something.
But I don't know we have to ask him exactly and we'll have to sort through that as we get further along.
Yes, Im sorry, I was dropped so I'm back what was the question.
Yeah.
The question was what.
What do you where do you expect to be with your cash position as you exit 2021.
Ballpark.
Yeah.
About $490 million.
Okay.
Okay, Yeah look everybody everybody for that is the big error bars around it it depends upon if we do long lead equipment and pay for them or not don't don't write that one installment, okay and so it depends upon what we do.
The question as I understood. There was expectation an expectation to me is based on the development cost that we incur as we develop net zero one yeah. It does depend on a lot of things, especially around long lead equipment deposits to advance the construction schedule.
That's the big uncertainty, but you know so there is an error bar around that but that's the point estimate.
Yes, there you go.
Thank you for that just one last one I guess the amendment scan.
Scandinavian Airlines bag was this related to volume or pricing or something else.
<unk>.
Oh, It was volume that came back for more.
I think we'll see more of that in the future income.
Others.
Understood that's all on a center so much.
Thank you.
Our next question comes from the line of Shaun Stevenson with water Tower Research. Your line is open.
Right right.
Pat I'm trying to understand when you talked about a $10 billion I mean, what went on one where all of these.
Pipeline wont start on <unk>.
Some of them, saying they didn't want to start taking delivery in 2027 or 2030 or are you talking about basically the fact that you could build plans.
So you'd have any in parallel.
To facilitate.
It's sure.
Nobody now it's in the game of wanting it sooner faster and all the rest and it is about gasoline alkylate and jet fuel both and we can't do them fast enough. So we got to go through the cycle. We're in to pin things down and then the net zero two plant I think is it'll be you.
It'll be done in per.
Overlapping with net zero one is the hypothesis necessarily III could be done exactly at the same time potentially so it depends on when we get the contracts done it's going to get interesting and then we got to think about how to do even bigger chunks all at once because it's that kind of a pipeline and so.
It's getting to be interesting people want this stuff fast. So next year. One is expected to come on line in first part of 2024.
Yeah, I think it would be interest to see could we push it and get the net there are two online in 2024 as well in 2000 and the net zero three maybe this is how we're thinking about it and why we're going to such detailed work and get it right on the engineering is so we can cookie cut these things that make them work with certainty.
Are you seeing any interest or inclination on that in that pipeline. What they want you to work with a strategic or are you basically operating fine on your own obviously signing off take agreements or operating part on your own but I'm just trying to understand if there's a nuance there that you know, they're saying Hey, we want big partners on this or just the mentality.
<unk> of these customers.
No. They just like they get it is that one of them.
Distinct and unique as a company because we do development of our renewable energy we've learned how to do it we are the experts in the permutation chemistry side of things. We've run these big processes on our past lives everybody knows that so everyone bets us and they look at it and they go on you guys know how to do stuff. We don't know how to do so there are people interested in investing yes.
There'll be times. So we can take project investment in or are there people, who have been approaching us around corporate investments as well and it's just we got to figure out the right timing and.
So.
It's going to get interesting, but as far as execution goes no. That's easy not easy. It's we know how to do debt in the engineering firms that we work with and there's lots of them that we're working with it's a big group of them. They are pretty good at this stuff too and my folk are really good project managers and leaders.
So you got to remember we've been here and done this before on our past lives. So this isn't like a new radio for us.
But no people look at US generally go God you guys yourself sufficient the other thing that you got to remember everyone should remember this is a fundamentally different about us than most other companies.
Most of the companies make some kind of a soup as a product that has to get refined and so they need a refinery we don't we make it deliberately the jet fuel and the octane and we can change.
If we want to make more stuff on gasoline, we can do that without changing anything in the plan to change the conditions walk on and make our jet fuel.
So in that sense, we're like a chemical plant. This is a fundamental difference and it is important when you think about how this marketplace cannot fall we've got a competitive advantage.
I believe.
Another question about the kind of the pipeline how diverse is there Dan.
Kind of nuance that you said there are some large ones in there, but just how diverse is that.
Is that.
Group and for modeling purposes should we assume that most of these plants and the offtake agreements have similar economics.
Yes, the way, we think of it as every net zero plan of 45 million gallons generates EBITDA stream of plus $100 million.
That's how we think of it internally.
And it would have.
On the.
I'd have to do the math.
You have to do the math to figure out the each day.
Across the life of the contracts six to seven years, so $6 five years $1 $5 billion of revenue across life on the contracts time divided by 45 million gallons was $5 and whatever it is 10 to 15 cents per gallon.
And so on a meal there theres.
There's a big variation on these contracts and I guess is what I'm, Matt. So when we look at sign up contracts and it's starting to fill up we should think very similar economics to use the same economics for all of them.
Yes, we do yes.
Okay. Okay.
And we found out and we found a sweet spot on pricing, where it works for everybody and it works well it keeps the customer's incentivized to work with us because we didn't get some of the green value it's interesting.
Just to clarify the diversity in that in that pipeline.
Yes, the diversity of the pipeline what do you mean on diversity, but you're moving some.
Awesome.
Is this is this 30 or three that are in that you know I'm trying to understand on these smaller at all.
Oh, Oh, there's probably.
On the $10 billion I think it's like.
I'm going to call it.
15 to 20.
Got it okay. That's helpful. Thank you.
Yeah.
Thank you.
As a reminder, ladies and gentlemen that star one to ask a question.
Our next question comes from the line of Craig Irwin with Roth Capital Partners. Your line is open.
Good evening and thanks for taking my questions.
<unk> I understand the enthusiasm your customers out there jet fuel is the one fuel that really has the least environmental compliance of all the liquid appeals.
It's high sulfur.
Hi emissions high particulate.
And really one of the best opportunities.
For environmental remediation clean fuels.
Can you maybe.
Talk a little bit about what you're seeing is one of the leaders in this industry on the regulatory front.
I think many of the customers out there or act on them today in anticipation of regulatory action.
What do you see as.
Possibilities on the horizon that could bring the rest of the industry along.
With the thought leaders that are that have already signed up as your customers.
Yeah. So I think what will happen there are several things you you're exactly right jet fuel needs work they can't get to there.
The industry can't get to the goals without having sustainable aviation fuel available and there's a couple of things that are happening. One is that the industry itself is pushing to go up from the 50% blends to the 100% so thats going to take a mixture of stuff people like us we could go make more than all of the components as well, but theres lots of guys, who can do that I think mixing in.
Matching is probably the right thing the key is to drive to low carb and the lower the carbon the better how you count carbons matters a ton.
And you got to do it on a fair basis in the channel Wise you start doing really great people do great behaviors. So there's a bunch of things like that that are being cooked and then the important ones are around there are some bills proposed like per blenders tax credits that would give like a $1 50, a gallon for jet fuel produced in the states.
And that would help the economics.
The airline industry itself does not want to pay a premium for these fuels. They know they have to buy them. The model that we have for selling fuels allows them to share in your environmental benefits. So we aren't quite as dependent upon this as other people, which is why we get some of these contracts and maybe others don't remember, we're getting on a take or pay basis, a real tegra.
Hey basis, and that makes us a slightly different than most.
Okay excellent.
So then just.
Economics, or something that's going to be a little bit of a wiggle.
As production comes online and.
Day today really everything is based on forecast, but can you can you maybe talk us through.
Just the basic process that you see when you talk to regulators.
Additionally for example, carb.
Starts with production today and looks at what you can achieve versus debt that baseline. So if you start off with.
I don't know whatever it is 600 P. P M on probably off.
Of sulfur.
In jet fuel.
And you can bring that down.
Down to 500 P. P M by by mixing and 20%.
Clean fuels.
That move down in the baseline is is where the economic value is on covered and that's a much bigger move down in sox emissions and youre going to get and almost any other investment out there environmentally I mean are these things that are factoring into the sort of regulatory.
Considerations out there and some of it some of the potential economic.
Compliance values that will.
Impact.
That's.
The credit values as we look out on the horizon, because I assume there will be credits at some point for the compliance value of these fields.
Yes, that's a really upstream point so.
But Craig is asking about is that theres going to be the Nox in stocks in particular are big deals.
The software problem is something that is hard to deal with and it comes in its inherent with the pulling of base products Youre right. We can eliminate that and it's a clear cut we can avoid it and we don't have it and so that is a good day.
And likewise with particular, we can get rid of those and those are usually zero medical pumps youre right Theyre valued.
The way that what I think is going to happen is we're going to see more regulation upon those things they actually in fact, even as part of the clean Air Act and I know you know this already is that's already there just hasn't been implemented yet we'll do administration start to push that stuff, probably should I think of delaying it for how many years a decade already they should clamp down that would benefit guys like us and we normally don't talk.
About those benefits now that said one of the way that we price our product is that we do an index like the jet fuel or gasoline on on some of these like our premium gasoline and then we get paid a premium on top of that just for its technical properties, which in part related to its lack up articulate lack of sulfur. So in our pricing models, we're starting to see value for that already.
Eddie.
Which is pretty darn interesting because it's way early on so it's our customers' problem. They see it it's coming at them and they're trying to figure out what to do.
Excellent excellent and then you know.
Congratulations on the progress on net zero one.
I know, we're really in a capital phase now and a lot of this is going to be.
The value is going to be realized as production comes online.
What would you say.
We can look at today for best indicators on the economics of production of that plant.
When it comes online.
You know it.
Difficult to compare a tenant scale up.
But is there anything else out there and sort of the broader universe of industrial and built that maybe we can look at day.
This has been done before and we understand that non.
Yeah, you bet. There is the last time a plant of this scale that was done that was a non ethanol fermentation that did a combination of.
<unk>.
Genetically modified eastern our new fermentation system, and then had it make it work right to do chemistry was back when we did TLA plastics at Cargill, So that we genetically engineered east the Afirma Taishan plant was giant in fact at the time. It was the world's biggest fermentation plant. The team I have at GMO were the leaders of that they did it.
The guys are still with me at Jabil. This helps us in that there's like the lessons we've learned about what works what does on what the problems with the pitfalls. This is not like you cant get any other place because you got to know how to do this stuff at large scale in the subtleties that go with it well My group has been there and done it before.
It gives me enormous comfort and you know Chris Ryan Chief operating officer. He led that might round Bar chart My head engineer, He's the guy who built those plants and so we have them here and they've been working with it ever since and that's been on our mind and the lessons we learned and so it is a.
And this net zero plant that we're talking about is on the order of that kind of a plant.
On that we did back in the day at Cargill, and it would be a little bit smaller than one of the giant ethanol plant.
Excellent well congratulations on the progress.
Look forward to.
Tracking things going forward and I'll hop back in the queue. Thank you.
Thanks, Greg.
Thank you.
I'm not showing any further questions I would now like to turn the call back over to Pat for closing remarks.
We have made great progress, it's I wish I could tell you all the details that I know you'd get really really excited.
And I, just can't and it'll be fun to unfold them and it takes patience for me too.
I want to see more of these investor day.
Contract these contracts with customers done I want to see the.
They are exciting and more than one net zero plant. That's a nice problem to have and it will also be interesting to see as that volume stacks up on take or pay contracts. It really does and the debate about what will people pay for this and are they interested really if youre sitting on the sidelines watching so it's going to be sure to see the impact on others around us and what <unk>.
And then the engineering, we keep plugging along and we'll get it done it takes us enormous quality of work, we're doing something unusual here integrating renewable energy called retail energy island into our plant.
So remember we got to do the optimization of the wind, we're gonna be making them hydrogen we're having a debate about how much hygiene should we should we make and because we think thats the very best way to store some energy from.
From the excess wind will have there's a question on should we sell the stock.
We've got a lot of things to sort out about how to conduct the integration. Thank god. The technology itself is solid and worked out.
So with that thanks for joining us.
Everybody have a good evening.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.
Okay.
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Yes.
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