Q1 2020 Fusion Fuel Green PLC Earnings Call

[music].

Ladies and gentlemen, thank you for standing by and walked through the fusion fuel green in Q1, but cash at this time all participants are in a listen only mode. If you require operator assistance. During the program. Please press Star then zero I would now like to turn the call over to your host Ben Schwartz head of Investor Relations you may begin.

Thanks, so much of it everybody and welcome to fusion of fuel Green for 2021 and first quarter.

The update call and before we begin I'd like to remind everyone that this call may contain forward looking statements, including but not quite to the to the company's expectations or predictions of financial and business performance, which are based on numerous assumptions about sales margin competitive factors industry performance and the other factories, which cannot be predicted.

Forward looking statements are inherently subject to risks uncertainties and assumptions and they are not guarantees of performance I encourage you to read the disclaimer slide and the investor presentation for a discussion of the risks that may affect our business on because of our assumptions prove incorrect the company's under no obligation and expressly disclaims any obligation to update alter or otherwise revise any forward looking.

The statements, whether as a result of new information future events or otherwise, except as required by law.

In terms of how the next hour will proceed well had a briefcase and cases presentation by management and before opening up the floor for Q&A. Please submit your questions and writing if you joined the online you can do so on the webcast platform and you can dial the and you can email your questions to Io or at the fusion dash fuel the EU.

So at this point I'd like to turn the call limit the fusion kill CFO, Puerto Rico figure of the service.

Great. Thank you so much bang on.

Thank you everyone for joining us today today's of very exciting day for us It's all for US quarterly update call as a public company. So.

And you have on the call with me today.

So well done on our head of business development, and joint and silver or CTO.

So we'll be doing the event of the 3 of US providing for an update and then we'll all be here for a for the Q&A as well and then.

And we have also law chime and Jeffrey Schwartz.

On the call as well in case anyone has questions for for him.

As we go.

So for us.

What we will do is we have a few of new join us on the school.

I'll start by briefly recapping, what it's about the hump.

Fuel and then we'll go on to provide the brief financial update the foregoing some more detail on the latest developments of the bank.

Yes.

And then if we can go to the.

And.

The next volume.

And the 1 of them.

Yeah.

Okay.

On.

Sorry, My apologies and then the.

And focus on fusion side.

So just to remind everyone.

And fuel story.

We are of Green hydrogen technology and the industrial player.

We provide both the technology for clients and produce their own green hydrogen and also we.

And we'll sell and provide green hydrogen at the products to industrial players.

All of our origin comes from the so the concentration of industry and of the starts of 2018, we began and the R&D process of creating our own electrifies the solution.

Through that and Thats simple was created was integrated com.

The concentrated solar to hydrogen solution that is off grid.

We use the revolutionary miniaturized Electrolyze the technology, you'll see an image of that on the on the left hand side.

We have modular and scalable units so those miniaturized electrolyze of attach.

A couple of hundreds of them attached to the back of that solar panel you see on the bus less.

And each of those units can produce around.

Around 1 ton of green hydrogen and Sadia.

Using some of the radiation and up to <unk>.

And 2 tons with day and night production and the.

For the honor it.

Sorry.

Modular and scalable solution for our clients.

With it we've been able to deliver 1 of the leading green hydrogen production costs of the industry.

We have a team with a high degree of experience in this.

Base.

And 1 of the highest pen based electrolyze of our efficiencies and the markets.

And this is 1 of the cause of the fusion of fuel so everything stems from from this core technology that I've mentioned and the.

The 2 business lines and so we have of both selling the technology and selling of hydrogen as a product.

And if we can achieve total.

On.

And so going forward.

We will provide quarterly financial update.

All of the lines of the tables and this presentation.

Given our size currently and activity levels, we won't provide the full quarterly financial results, but and said make sure the.

Key financial data is shown on a regular basis. So that you can track our progress and see how the.

For the company.

Is at any point in time.

Currently we are not showing the debt levels and the talks that you will see and achieved.

The 2 sides of the company has no debt business develops we will introduce the government into our financial updates along with the production quantities as well.

Well you can see on the slide here is some highlights of the quarter of I.

I will cover the financials in more details on the coming slides.

But what's noted the first quarter was and incredibly busy start of the year right from the first few weeks, we will regiments and some of the projects hit and our Investor day in January.

And I'll recap the main highlights.

Yes.

During Q1, we entered into 2 different and they're used to explore synthetic fuel pumps using fusion tool of hydrogen in Portugal.

1 was with group on this.

And the other CLO.

Which operates the steel mill and looking to use the carbon emissions from that steel mill and the other was with Magnus He does the who've done.

And Spain as well looking at the carbon emissions from the the mining activities to also make them synthetic fuel pumps.

We established.

And the partnership with <unk>.

And Spain that is the association of service stations and Spain.

To actually look at introducing clean hydrogen fueling infrastructure.

The infrastructure.

And and supply across Spain.

Linked to that 1 was the Mou with <unk>.

For the Reals.

And to develop.

The clean hydrogen for the first integrated between hydrogen refueling stations and Spain.

And then losses, we also announced the partnership with BG on energy systems, and India to build the demonstration of bonds and start the business development activities.

In India.

We've had some more recent business development update.

And those level.

Tied into those a little bit deeper and a few minutes so of let him cover those.

And excitement.

So on the financial overview.

Note that we have.

Revenues of around.

500000.

Euros.

Related to the purchase and then subsequent sale of custom made components of swap production on that.

And what do you what Youre seeing there is the revenues and the cost of sales and effectively nothing each other out as this is the way. The we are securing these customer of components and securing the stock of these and then making them putting them on the disposal of the production partners and then build the final.

Keep us all the units.

The expense of this back and forth will continue throughout the year.

And this is of strategic importance to us because it makes sure that we are actually and control of the stock for these core components throughout 2021.

Cash and cash and equivalents at the end of Q1 was.

Around $62 million.

<unk> of 62 million euros up from $58 million at the end of the year the <unk>.

<unk> was mainly driven by capital of inflows from the conversion of around $1.1 million warrants and leading to inflows of 12 million and U S dollars during the quarter throughout the course of.

And should say.

The operating losses of around <unk>.

$6.5 million are effectively driven by the charge of $4.9 million relates to US said based payment expenses.

And it was part of the transaction. So these of charges related to the potential share and warrants issued of obligations.

And that was part of the business continuity.

Continuing agreements.

And as a non cash expenses I think it's important to recognize the same way that we had.

And as can be seen and.

At the end of 2020.

Large transaction and the listing expenses, which were also not cash expenses. These are all related to the transaction.

We will note that these expenses are actually expected to continue.

Throughout the year and they are.

They will continue until end of June 2022 the.

The $4.9.

Millions of roughly $4 annually and each quarter.

Other expenses the answer to that.

And that's about roughly about $1.6 million of.

Related to.

And I'd call of fixed cost of payroll these insurance and so on and of around 250000 per month.

Intellectual property the transfer charges was again part of the of.

The legacy sort of contract.

Pre the business combination of agreements of 250.

Awesome.

We have 2 more quarters of those payments go to vote.

And then.

The project production upfront payments of around 1 million euros. So these are and.

All of this as a tool.

The production units of portion of the product charges, we pay upfront and then we start paying the remaining net.

Of the of the materials on.

And as we take delivery within the success fee at the end of the project.

At the end of the production process.

While sales going to the pretax income.

Was positively impacted by around.

The 50 million of positive movement.

And on the changes of the fair value of the outstanding warrants.

The simply reflecting the lower valuation of.

The bar on price versus the end of.

December.

Which then with the release those $15 million.

And so we will we will see that that will continue to move until.

And the warrants all of fully converted.

And we will always break that out the use of it but it's clear again this has brought on.

This has no cash expenses.

Cash impact but.

And transparent with you as Congress out so the people can follow and understand what the numbers on <unk>.

On the phone.

Is the next slide.

So we currently have.

The $2.1 million share.

Shares outstanding.

The increase was driven by what I mentioned before the conversion of around $1.1 million warrants during the first quarter.

Currently some of.

Was around $5.5 million tradable warrants that are outstanding.

And I would say central is also keep a track on that figure.

And if all of those $5.5 million warrants.

Welcome to assets.

That would lead the.

Represents around the.

$64.65 million.

<unk> cash.

Absolutely.

So as I mentioned this and we will look to provide the sort of financial overview.

Every quarter.

We will also.

Adding items.

Some sort of growth so as we take the when we take on debt.

We have substantial assets to show as well will thoughts.

<unk> and building results so as the foreign issuer with other clients that use the library and.

Hence the quarter.

Quarterly for quarterly financial results, but we still want to make sure that our shareholders have all the information both of the needed to.

To keep it and I and the track on how the do it.

So.

With that I'll move on to the business update.

And all of 2021 milestones.

So as we mentioned in.

And on the Investor update and <unk>.

January this year.

We have 3 core priorities and strategic priorities for the yet.

The first is the go live of the Everett balance and the installation of debt.

Robots.

The second is the signing of strategics and <unk>.

Use partnerships as well as hydrogen purchase agreements so that we are well on our way too.

Execute and deliver on the business plan, we presented.

The third is the build out and installation and then the subsequent flow line.

Of all excuse me 2 production facility in order to be able to manage with the expected much Lauder put production numbers that we are targeting in the business for us. So those are the 3 core priorities for the year will now give you and updates on on how we are and each of those and then sort.

And then finish.

Okay and that these types of.

Thank you.

And in our quarterly results presentation for the past months, where specialty active and the pursuit of our strategy to develop green hydrogen projects using out and the technology call it equal solar which defined as a priority and negotiations of and will use and HPA and some of the world's leading companies Bolton Weiser on GAAP.

As well of the ammonia.

And several countries worldwide packaging for them.

And it's already approved and and the implementation of tax planning specific provision of licenses that can lead to sustainable growth.

Most of the study licenses on the pilots to develop the projects. These constraints will be the last.

The take the decision to anticipate securing the land.

To follow on projects.

In Portugal, and Spain, and stop the environmental Sabic that piece of the most impactful document for obtaining permit lack of the spec.

Construction on the operations of Green hydrogen projects our initial strategy.

To develop the green hydrogen project.

And so the power presence and saw the year.

Mainly and Portugal, Spain and at the same times of the multiple of Africa in Morocco. The increased interest from several other countries and the well when he did ask for anticipate our international growth and started developing business and different geographies and our people solar technology has a tremendous advantage and compared to other.

And the extra license since we produce green hydrogen and directly from the compression of solar radiation, allowing from 1 side the reach the highest efficiency and the lowest level of life cost of hydrogen, but also allowing us the developed projects and locations offering. This means that we don't we do not need.

Electricity from the electrical grid to photos and hydrogen, allowing gas and power project and remote.

On the areas that do not have our capacity of battle.

Additionally, our technology is more suitable for the regions of the world, We had higher levels of solid about the issue with charter and regions. We have been and we're happy and announce the biggest getting hydro kind of projects, such as Australia and beliefs in USA and Chile.

Now and can we ask the next 1 slide please.

And the ever project, but they are of a vehicle.

On the installation of <unk>.

And it will be the galaxy 2 phase.

1 of course disposal of installation of 15 equals selling units for the most sites of the production of Green hydrogen.

Directly from the compression on the solar radiation and also includes qualification compressions started system and compression from the net useful.

Use of fuel cell and.

The necessary injection into the national will actually complete the project using advanced construction the plus people solve what the commission recently and is in production.

And the nitrogen is positioned to the nitrogen at both our conservative.

The patients 2 additional units are alright and style.

And the remaining will be installed and commission and the next couple of weeks the phase 2 of the anchor project concrete pumping installation of <unk>.

Yuval soulless units and so.

Demonstrated the ability to put the screen either hydrogen to be injected and the natural gas pipeline from the average CP and also supply of green hydrogen and buses to industries and at the same time to either January fuel stations and the municipality and for that.

And finally approved the construction license and we will start construction and do the next week with the aim to finish the installation by the end of July.

Now we'd like to show you what your view of the current installation of anchor projects.

Okay.

[music].

And then.

[music].

Our people per.

So for you.

Heating fuel.

The business activity, starting new Mark decisively and Portugal.

We are running to commission the price 1 of.

And the project to invite the potential developments to come and piece of the plant and the operations and to request and independent engineer reports of the performance of the plan. We are moving forward with our initial strategy to develop to develop the green hydrogen project and seamless and so we are currently the valley.

The project out of the 5 with the aim to produce 3 nights hydrogen to be injected and the natural gas and the national strategy for hydrogen.

And the screen pneumonia to the use of hydrogen caveat to be exported to the knock on Europe.

The historical peak bottles, the supply industry and to supply the supply either ANZ fueling stations and the development in Pottsville as mentioned the part we are executing more than 300 hectares of land and we have copies of the partnership process Eastern represents around 1 third.

Of the initial soon is the project that we expect and staff and field for 2025 in terms of funding for this project. We have submitted the first project and funding for which we expect to hop on answer that until the end of July we are part of that.

And also part of the Portuguese projects that west of meat to the European Union organization called keep site.

The importance of projects of common it would be and interest which will keep the special condition and grants for the development of green hydrogen projects.

And recently in.

The last 3 months of static in spite of where we are in the negotiation with some of the most important.

All of them and gas companies as well of the algae electrical utilities to develop the nitrogen projects. We are also developing several projects, which are and the negotiation for the same reasons that unfortunately, but the.

<unk> use in the production of Green synthetic fuels, we have 2 projects 1 is the project for growth.

The C L.

The Josh.

And the other 1 is the magnitude of such project and the bulk.

Both projects will have the production of green hydrogen to the mix, which C of O 2 to obtain green ethanol and getting the jet fuel.

Projects. The 2 projects I mentioned will be submitted to.

And final products available for the kind of organization. We are also on the negotiations for secured more than 1 filed in the cycle on the next parcel of land and we installed additional projects most of them to produce the Guinea and hybrid hydrogen to be injected in the national gas.

Gas pipelines of Spain, we established the strategic cooperation for the installation of several of either shattered fuels and we expect to announce the first the EPC and HBA contract and as soon.

And at the same time and sideways and we started negotiations with some of the most important of oil and gas companies hospitality electrical utilities to develop the nitrogen projects. We are negotiating the installation of the day.

Australia and flat that will be announced soon.

And the Morocco.

Negotiations are undergoing.

And the producing an average that will be used in the production of 3 and have on yet to be used for plenty of lives on industry and to be exporting.

Average on carrier for the North of Europe, where we will be practice to obtain clean hydrogen for the mix with natural gas and the injected in the natural gas great day.

And we decided to go worldwide with spikes in the Middle East.

And where we signed the cooperation agreement with the company that is 1 of the leading international contractors and the world quite of a strong position for the middle East negotiations are undergoing.

To produce screen either share in an inactive out of EMEA.

And in Oman.

And in <unk>.

More recently, we started.

The importance of operation in Australia, which is now on the market for our company due to the favorable conditions and terms of solar radiation at the allow for boosting green hydrogen at the lowest level of livestock growth.

Hydrogen and the world and find the head of agreement to be the Australia and all of the company to develop a strong business the relation stoppage of the installation of the demonstration plant, we are under negotiation and part.

Part of the development of several of Green hydrogen project most of the located in Western Australia, which is the reason of Australia with higher Sullivan of the actions at the.

The same time, we started our our internationalization and India, where we signed an agreement with them.

The C contract called <unk> energy the developed green hydrogen.

Particularly in the regions of the Rochester and group.

This cooperation will also be and halt and the production of hydro to be mixed with sea of 2 of several coal fired plants on <unk>.

By the end and utility cost and TPC to produce methanol.

We are starting our operations in the U S and USA.

Pumps and market for the development of Green hydrogen projects and you recently incorporated the fusion fuel MSA with the aim for stop developing projects in the coming years moving USA.

And last but not least and we.

Started negotiations and talk America, most of the more precisely and Chile to hydrogen and the way.

And at the counter.

Chill, the hot and most of the size of the yet to come with athletes instead of me.

And of the walls and the highest Hollywood the action and constant and consequently, we will be the price, where we will produce the cheapest screen nitrogen.

Now we would like to highlight some of the importance of and limits the app sign.

And the following 1 of the leading companies.

First of all we have we have signed and co.

And an Mou with the spine.

Okay.

Leading companies and PC companies and span of called elect not to develop our evo solid technology and technology.

And 1 of the Spanish, leaving piece of the scripts and the distractions and renewable energies and it has and expense of 16 years and has a presence and 55 countries.

This partnership will if not that important not only to develop all the EBIT the Spanish market, but at the same time to develop projects and.

The countries that they have of sunglasses.

The next slide.

Okay.

And we sign and compression and agreements.

The company called CCC and the name is consolidated contract the company and we signed an agreement to the discount to develop the demonstration plant to produce and hydrogen on Hawaii online and I've got Paul and CCC is global and diversified company specialized in the engineering and construction and has become 1 of the leading come from.

National on shock of global commercial footprint and at least represents the significant opportunity for fusion fuel.

Because of the high levels of solar radiation that allow us to put the screen high definition.

Paddy and low cost.

Now the next slide please.

And recently, we signed that happens all of the payments fantastic operations sign and Paul.

Finally on half off of agreements with and Paul and solid demonstration projects.

And false like.

Like from.

The refinery site and installation is expected.

Both of the next 12 months and will lead to the China business development for <unk>.

And it is in Australia and policies of the Australia, either in transport fuels and hospital, and recently announced sufficient future energy and the capitalized patients stoppages of.

Share of the abundance of solar energy.

It makes it 1 of the best locations for our people and solar technology and for the production of very low cost of green hydrogen.

Now I would like to present, you and James schools, and our CEO of each of fuel.

Hello, everyone.

Yes.

And to be able to produce.

So the project debt.

And the development of making all of the stacking.

The increase and it actually can we get 1 of the manufacturing capacity, we closed recently and the agreement is for the facility.

And of our.

Our future.

First the manufacturing facility.

And the main events and the south of Portugal and.

He turns of around 15000.

And meet the resolve and yet.

And in the sense and.

2022, he has a capacity of the levering and.

The reality of the 100 megawatt.

Net into half of it.

<unk> net and the.

The equipment, the net to be scalable to reach the 500.

500 megawatts of capacity to the leaving 2020 per day.

This facility is a net in a location and.

And that he's able to apply.

225 per cent of sound and the support from the go back and then on.

And all of the investments made in the production and all of the renovation and the renovation of the FX will.

3 of the communities will kick off immediately.

And the he.

And he can be a fully automated the units to people and we expect to have in 2000 and can lead to working.

On the manufacturing it will be around 19 or more of a net to reach the.

Objectives of 100 megawatts of.

Capacity to be the label so.

And the installation of the the production equipment.

It's being built.

The stacked late summer and.

And we expect it.

Despite the soft.

And as option for units to come out in the fifth quarter as of next year.

The next slide please.

So and.

In terms of the resource developments and.

During the quarter to be at.

Yeah.

And several projects some of them because something the end of the sea and beginning of next year part of the evolution of the technology and.

We have our research and <unk>.

Elephants departments of being <unk>.

And green drastically and.

And on the we are also closing.

And the seats with stronger research institutes and.

And of course that those specific areas like for and also.

1 of the biggest 3 especially for 15.

Europe and Germany.

The E on also.

And from the specs.

And.

Partnership and other more strategic areas.

And like others and storage.

The debt, we intend to take and yet.

Starting with the.

First of all of them.

Great. Thanks for joining the <unk>.

And so.

Due to the.

And final slide them from us.

And.

Okay.

So.

Just to sort of wrap up of finished again with the the.

2021 milestones, especially on this very important and sort of the.

The first year for us.

Just as because we heard and seen.

The ever of bonds.

And well and truly underway.

And within the.

A few weeks.

The phase 1 split and in the bag and the.

And the moment sort of a couple of months, we will be the phase II as well.

The and the.

The initial results we've seen from from the units we have up on.

Incredibly promising and actually.

And the outdoing on expectations.

On the other sort of second priority of and I'm going to use and HPA.

You heard from <unk> loans, we are well and truly underway.

But everything that <unk> said and perspective and January we said that the.

Our entire pipeline not committed orders, but pipeline was around 4 times bigger.

And then that the what.

And what the business plan and projected.

So we were pretty comfortable on being able to still execute on the business plan.

And the only about 3 months that number has gone from 4 times the business plan to around 6 times the business plan.

So the market into the devoting.

Very quickly and.

And with where suddenly keeping keeping up with it and are busy.

On the development team as well.

Production facility could you just heard from China.

Locations set.

On renovations, starting very soon installations of summer and we all of them.

Well into the zinc on the way to to these 3 key milestones for 2021, setting us up exactly on the right path.

For for the coming years.

So with that I want to this.

Thank you for for listening to the 3 month of loads.

And now and hope to.

And from some questions from from you guys as well. So then the positive with Q&A.

Yeah. Thanks for the ratio of remind folks to get their questions any other 2 to IR at fusion fusion to ask you about EUR for on the webcast portal here.

The first question is.

I guess I asked for perhaps 2 to China to start.

Do you see any risks.

And that's something that worked well on the small scale like the problematic when when deployed at utility of our industrial scale and if so what problems that might what might those problems day.

Yes.

And the units, we have the and he hits the related and deposits and make a move.

And the renovation of all of the analysis.

Last year, and where individual units not connected and Netflix. The question is the name.

And the Evo solar you saw working in the video is already the home connect is the and the using the metric could be and supply.

And the English deal scale in the power plants and the agro vein is also flow directly to the extent the life point in the means using the right 1 because this means that in fact.

And the unique net do you have already working on the field.

The Eaton already exactly equal to the unit and that will be in the full power plant. The main challenge we had the doing this debt.

And the teammates there and.

In fact at the challenge from passing from Man and research unit. The prototype you need to a power of plain unique and.

And lean over again, and so right now.

We are going directly cakes, mark when the piece that is the main challenge has been overcame and react and Randy and Jim to the next level. So we launched for any additional situations and then the win that we have over Kansas The Pms.

Day.

Yeah.

Great. Thanks, John.

The question here, perhaps stick with you what is kind of.

Why is the and integrated solar electrolyze are sort of pushing better than using a large scale centralized electra wiser and then combining that with renewable energy from the grid would you say that a miniaturized electric wiser is more efficient.

Yes in fact in fact, when you if you if you take it.

And a solid balance sheet solar PV power plant.

The transport for the NFC and convert it in the.

And we the I will say we hit the <unk>.

2019, and 21, 75% of the salt.

So all of that compression and then you have to transport the electric at the convert we see compared to the seat and finished part is towards centralized the like the lives of the then convert it again.

And when we have the small miniaturize guidance in light of the connected.

Connected to the sales and taking advantage of the east some heat generated by the sales you.

All of the near future and seize on the system in fact, we and we.

We are able to have the equal and level of salt life drivers and conversion efficiency of $26.8.

He is extremely high yield and then hit the food chain of.

The levels to transport the energy and converted the wider zone and we have also.

And that the stronger advantage, the ease and making smaller making it easy and many of the light and.

And the rebuilds.

The lights on Ids.

The constructive and design.

The design in a completely different approach than the traditional banks.

Allow us to have the small unit the completely true automated.

Possible to be out of my deep eh and extremely low of course.

So when we put both things together and you can see there the perform myself of power plant and the Capex you have to do to make it work.

And the you'll reach wed Mitchell our.

And the underlying cost then compare easily the P. D R.

We the center like the life at all either.

Thanks, Chad.

The next question for perhaps Joe.

Federico in terms of the pipeline growth from Forex to fix ex.

How much of that is is more demand from existing counterparties versus for some incremental demand coming from from new.

And the parties.

And I can answer that and in fact and.

And our business plan.

And what was the balance on this path for fusion for 2 of let's say for South Europe and Morocco.

Demand of the nitrogen of course from new by that time that the world like the statutes.

On the money of ago.

Knew that there would be plenty of opportunities worldwide.

We never reflected them in our business plan. So today of course most of what we are negotiating comes from from <unk>.

The instance, Australia and middle East, the where the opportunities we are negotiating today.

And really big when compared to the opportunities that we have in Europe and according to the initial and get the spine.

Thanks for thanks, Joe.

Net.

And any plans for projects or initiatives to address the transportation market and the future and I could talk a little bit of route and that's really the.

Maria and greater detail.

Or others.

Yes, they do that and so the hydrogen refueling station for.

The fuel tell electrical vehicles is growing of course, the coffee with the demand.

Today, there is not too many vehicles fuel.

Sales and vehicles and so.

A lot of our we are negotiating with the tableau entities, we made these agreements and visa.

The C E F. So the association of the.

And the gas stations in Spain, and Instyle hydrogen refueling station that is the strategy from European Union to have the green highways of the highways and to connect the Cps.

The capital of the countries and I imagine from Portugal.

For it varies.

Atlanta, or whatever and so there is a lot of opportunities and we are for.

And the NDA, but we are negotiating with several other.

The oil companies for.

The installed hydrogen refueling stations in the us getting highways of parts from smaller installations for <unk>.

And for CP.

Consumption of future.

The other general vehicles.

Yeah.

Great. Thanks, a question back to it too.

How many people so there's 100 megawatts of electric wise the capacity equates to.

Okay.

Sorry can you repeat.

Yes. It was the question about how many so for next year, you mentioned that the production facility, what kind of like kind of a capacity of 1.100 megawatts, how many hugo soldiers and.

Does that equates to around it around the clock 1008 hundreds.

Great. Thanks, you do anyway, and you wait the manufacturing capacity.

And.

And it will be pretty.

And when he carries a raise the Florida the and.

The delivery needs in 2023, and 2024, so each of designs for the full amount of Franklin and kept at ETE.

We will not pay for all of the equipment and staff.

Just the <unk>.

<unk>.

And the necessary for 2022 because of the line is already designed and installed and thinking of the manufacturing capacity of 2024 does this mean then.

And when we decided to make the additional equipment. It will be of very fast operation just the delivery of it wiechmann because of the line is already will be already be buried.

Part of the manufacturing capacity of 2024.

So the the different places for the equipment and the the transportation of the materials will be already there.

And the real gem for very fast.

For the next to the level of capacity as soon as the egg.

Green lights from the business development. So this means that if the business development.

And Mark barrage of it sooner real gems.

The sooner too.

The next level and we will not wait.

The too much time to the incremental capacity.

Thanks for that quick couple of questions here for frederico around expected revenue.

When you would expect to start generating revenue.

And and how much.

Sure.

So in the business plan that we noted that we actually expect it to start making revenues.

In 2020.2 with.

The total revenues of around $45 million during that year.

We will likely see some modest revenues in <unk> and.

<unk> 2020, 1 already even excluding what we've shown today of the revenues due to the.

The production stocks and material that's provided to 12 partners.

Simply because everyone will be up and running and we'll start generating some modest revenue is already in the second half of this year. The reality is the where we expect most of this in revenues.

It has to be actually towards 2022 with around $45 million.

That said 2020, 2 we still expect to be.

Posting a loss of official loss for.

That yeah, given the fact that we want to significantly invest and developing our own hydrogen plants. If we were to sell all technology already fully to third parties.

We would be breakeven and like the breakeven and the black.

Already in 2022.

Strategically we are building on hydrogen bombs portfolio.

Thanks for the recovery, we will stick with you here on.

Or is there on that.

Question around material impact on the level of cost of the pipeline coming from increasing poly silicon prices or perhaps other all kinds of other.

Other raw materials.

So.

Sorry.

The.

The impact of increasing raw material prices on the lateral lengths.

Yeah, that's right and.

And.

We have we are facing in all the industry and being all changed the there from.

And the noble metals and be there for Sealy gone and speed asphalt sealants electronics and semiconductor still illumina and we are facing.

And of use.

More than inquiries and the.

Martin and increasing costs, what we're actually seeing right now is a sharp drop of materials, we have the groups.

And that they have not able to the lever and the day, we will delay and they do not that the dates for the LIBOR and anyway. So the evergreen for seat.

Our chasing departments.

We are testing and.

Mitch more ultimate deep on each eat them.

To have them available and each 1 of our internal objectives to secure the raw materials and things Jeff The securities.

2 of the 2.

2 do not have the delay in the and the deliveries and the manufacturing so regarding the impact on costs and I will say that the main components.

The debt is bringing sending back is not the relevant not using back but the same impact.

He's the iridium is material.

And that's the use in our product.

The all of the put all the all of the remaining deals many of the steel and.

And the main problem it secures the deliveries and not.

And I believe the impact on costs.

That's the game and the.

Department has been the reinforcing and.

And we have and internal task force to increase the number of the companies that we have currently 5.

And each eat them in order to try to reduce.

And the risk of being and.

Without the material some of them are very complex and the.

For eastern semiconductor.

And we have a lot of a lot of the.

I have no control equipment on the system.

Semiconductor of these went off the.

1 of the main issues they are not so much suppliers the.

Qualified the right now.

But we are and we are and we have increased our per chasing the department in order to face the.

And this problem net.

And he is not yet completely understood when he is going to be when you're going to the.

The reduced the risk of our B seamlessly.

Great. Thanks for that question here for Frederico on our.

Capital requirement and how long of your expected.

For the liquidity runway based on current cash position and expected capital need going forward, how much additional runway from capital inflow from warrants provide what are the biggest risks to the tune of liquidity outlook.

Yeah.

South of suddenly so in terms of the runway of suddenly the the warrants are the sort of biggest unknown on that side.

The.

So the simple way to think about it is the.

It's the outstanding warrants was from but we would not require any additional capital in order to execute the business plan exactly as we stated in John.

It is for you if we assume the the warrants to not 2 months.

We have enough.

Operational runway to take the swelling to 2022.

And look the even into 2023.

The main drag on.

And so consumer of capsule will be the.

And the investments into our own hydrogen bombs.

That is something that we could always.

Take our foot off the accelerator, if the capital position sort of acquired and instead focus more on the technology sales and making the immediate short term revenue rather than the longer term.

The long term hydrogen sales.

From a capital position for our existing business plan.

We said we have enough.

The runway suddenly to handle it with the warrants and enough runway and time.

To manage the situation of the warrants and awesome for us it.

And the only caveat I will note is the.

As we saw from from all of the exciting developments that are slow and his team has been had been up to.

When we saw occurring for other fields and if we start to look to more aggressively expand into new regions.

And Thats apsell position could change so that will be something that we are constantly analyzing and as the strategies for those new emerging markets continues to develop there will be something that we will be keeping on the oreo or what the of capital deployment.

On the subject of those.

And those new markets and new opportunities outside of southern Europe.

Due to the potential of demand from large markets, Australia, India. The U S. How quickly can you develop a production facility to supply those markets.

Okay.

Yes.

So the.

The view here is the obviously the most important is the current production of associates that we have at the.

And builds and the.

During this year.

We believe that.

When we were to take the decision of going live within 1 year, we would be able to have a production facility and the new region.

Installs.

So trying to answer that yes and.

The new sterilization here, it's being built in the model or the way.

This means that the will take.

The click Mount to developed each model that you repeat the.

And it will be just because of the delivery of the equipment. So.

Is this more of the like the allow us to build the factory.

The steady build tasty.

And the everything fine.

And adjusted.

And we will be very will be metrics day to duplicate because the models and already established the finished and the approval.

So we will not make the same time to build the second factory ought to be the second line.

And the like we are taking the second 1.

Yes.

Thanks sticking with years on you said that the units and actually I think adjusted this the units ever are exceeding expectations can you elaborate a bit around that to what extent of that exceed the expectations what is performing better.

Okay and.

And.

I would say debt to the.

And.

The results that we are handling the neighborhood.

And the adding line and exceeding expectations and the.

The word of exceeding expectation.

Is that the creating as the placebo after and Africa the.

And.

And then the nowadays is to increase the throughput of the product right now.

And we have the throughput of each month of all of $3.90 grams per hour and 2.

1000, and what's basically meet their of radiation.

And the.

We will probably be April the.

The increase it.

And the Africa the.

On the first of all our plan to be the labor and then that will give us any additional.

The small reduction in cash right now what is expecting forever at ease.

Even before finishing it is that the we will coal.

The independent and I'll detail the.

And we need to report on the 2 directions, when the pro farm myself and people solar and the radiation. So for this radiation they drilled per the dish.

And what I'm, saying and second when is the secret of issues because of went up and the main maintenance, but don't makes too towards the <unk>.

Business development side of that he's been the licensing.

The it's the track at ease that debt is not at the equity needs to wake wires and startup losses certification of.

And the location and we're neighbors and the so we want to go through very effectively the operating reports on the performance and on the security issues in the.

Our debt to allow us to speed up the.

The business development and some more complex areas like.

Like the like react facing south of the south of Europe.

Thanks, Greg a couple of questions here about and Paul and the potential for the joint venture structure and Australia.

How are you thinking about commercial opportunities in that region or are you contemplating of partnership with Tesla, which has also partnered with Apple.

Thanks Ben.

And at the moment.

And it's just.

The other days and our partnership.

With ample.

So still defining on on what that comes and what that brings.

Well.

Just to confirm here of the.

We have not had.

And I had discussions with Tesla.

And I have seen a couple of questions come through.

On that front.

But of course for us partnering with ample of who's ready the the leading transportation fuel will play out and that market.

As more of than we said of wishful and extremely excited about the opportunity and we see the opportunity and Australia.

Be significantly board so not only are.

And hydrogen for transportation tools.

Hydrogen for.

Some of the heavy industry sectors, the operator in Australia.

Also the.

The hydro hydrogen as a potential.

The ingredient for some of the sort of tenths of few potential future fuels like the ammonia for heavy transportation did cause the trains and boats and so on.

And.

Eventually also.

Hydrogen as the <unk>.

Ingredients for.

Other chemicals that will be exported from from Australia. So we see the partnerships and Australia.

And the incredibly broad frozen anything there's lots of and I just wanted to have that and.

1 of our other than the.

Moving stations, mainly that we are developing for Spain, and which market and Portugal, and we will develop in the future and Australia for sure has mentioned we produced the highest version upgrades and some of it and.

Some of the hydro and gas stations.

Wife on the grid from the national election, electrical grid and we.

Designing a solution to the produce hydrogen and using solar radiation and the.

We will start with hydrogen and you'll have the ability to 2 to the produce electricity to charge the electrical costs and.

And the gas stations, where debt is no.

Electrical grid available. So this means that our solution is part of it.

Fuel sales of electrical vehicles, and using direct hydrogen and by the same time, we're gonna use of the either of them with fuel cells to supply the electrical car and electrical battery cars such as the deadline.

Yeah again for the company over here. So 1 more question before we before we end the call.

Have you has the season fuel have expertise with regards to applying for a subsidy programs, while the rich the EU Green new deal.

So the ECB of Green investment fund for infrastructure projects.

Suddenly thanks, Ben So definitely this is a very importance of effect in this industry and only the going to grow in importance not only in Europe, but also in other regions to be able to as we start to see items emerge and the U S cash.

Currently we do have some limited expertise within the fusion fuel and we all of expanding that expertise as we speak.

But in addition, what we have done is we have partnered up with several players who are.

Which is the core bread and butter, the especially support thumbs and navigating what can be pretty.

Complex.

Submissions for the.

And the governmental programs.

However, 1 of the points of the I would note is the well 2 points first of the business plan that we said and in January did not include and did not assume any subsidies already within it.

And I believe it's fair to say that there is no projects that we are looking at.

Well, we have built for them on the premise of receiving subsidies.

The projects, we are pursuing of projects that we believe and the validity of the projects as the whole.

So the <unk> program. So we can be a pulse of who will be a.

2 of the Cherry on top.

But what's the exciting.

We believe the current pipeline as it is.

Robust regardless of the governmental aid.

Okay. Thanks for the refund and with that I think will and our Q1 update I read a lot of engagement and the Q&A session and so if you didn't get your question answered we apologize for the reach out to IR of fusion dashboard that you and we will do our best to get back to you. So with that we'll say goodbye and thank you for your support and we look forward to speak with you in the.

Future Goodbye.

Ladies and gentlemen, this does conclude today's presentation and you may now disconnect and have a wonderful day.