Q2 2021 Fusion Fuel Green PLC Earnings Call
Interest rates, especially given the carbon emission charges, they're expected to not only.
Continuing the revenue, but also increase in.
And that value.
Green hydrogen is probably never been as well positioned.
And the competitive landscape as it is today.
On the right hand side, you see the electricity cost in the Iberian market.
So in Portugal, and Spain in the last 12 months electricity prices have increased roughly 350%.
This is a.
And you can see the volatility of that movement there on the chart.
Now for.
This can be a significant issue for centralized electrolyze us that on grid.
Not only to deal with the volatility in the <unk>.
Most of that is green hydrogen.
But also then the increase cost.
Possibly Hudson that this represents.
The center showcases the advantage advantages of having green hydrogen production solutions that are either operator with a dedicated power generation source.
All fully integrated like our revenue Heber solar solution.
Instead of it.
Right now we seem to be quite a sweet spot in the market with both great becoming more expensive.
And operator, having a significant competitive advantage.
Now too.
Two little recap of the second quarter highlights.
I will just touch upon the ones that we've done I mentioned in the slides later.
And the only reason for those that we've actually already mentioned them in the.
Our first quarter slides as part of the subsequent events.
We did announce a partnership.
Or an agreement with electrical to develop green hydrogen projects in Spain, We also announced a partnership with CCC to develop.
Green hydrogen projects in the Middle East.
Specifically looking at doing.
Demonstrated bonds.
And through the middle Eastern markets.
We've also we also announced.
Agreement with ample twin school and demonstrates a font in Australia.
Refinery.
We will provide more details on the other points during this presentation and depending on the tourist learn more about the three I just mentioned as I mentioned they are all in our first quarter results presentation.
The chart on our website.
On the financials.
Have models revenues and cost of sales in the second quarter related to the provision of customer parts and components to our production partner. This is the same as the first quarter.
See that the numbers between revenues and cost of sales matched exactly. This is just for us the strategic provisioning of customers' path to all production pump. So this will this relationship will continue throughout 2021.
And the total operating expenses, we expect these into cash and noncash expenses for the transparency and to better monitor the actual activities of the business.
The share based expenses are related to last year's transaction.
These charges relate to potential Cheyenne warrant obligations from the Metro agreements. These are non cash expenses and they will continue into June of 2022.
The operating cash based expenses are driven by payroll, both internal and external staff and then followed by insurance office and land leases and legal costs. We have had also some FX charges in there as well.
Another noncash impact, which is the last line just below pre tax income.
Is the value of our warrants, which we need to revalue each quarter and we need to recognize the difference in the P&L in Q1, we had a substantial positive impact from those on an accountable basis.
So we had a modest.
I guess it would impact enrollment.
And on the council basis.
What you'll see on the last line.
Potential change to our cash.
Cash balance.
<unk> reduced by around 11.5 million.
This is largely driven by two main factors.
One is the purchase of the <unk> facility to our future production associates for around 5 million euros.
We will look to in the midterm secure lending facility against us. So we hope to recover some of that liquidity trading that happened there.
We believe we made a very.
Not only strategic purchase.
But even though very good classes in terms of the asset value that.
Around $2 million cash also went to the purchase of components and raw materials, we use.
In our production process.
These are large purchase orders.
Actually given the longer lead times, we've been seeing in the market, we will make sure to put some fairly large orders fruits.
To try and.
Secure as much of the supply chain as we as we can.
Yeah.
Just on all the shares and warrants outstanding.
No change from the first quarter, we had no warrant conversion in the second quarter. So just to provide that transparency.
So before we take you through.
Our business update with 9% some photos of the activities have been happening in the recent months, namely the development.
Everyone.
The launch of all Morocco project.
The new factory.
So we see the <unk>.
Development and construction of this project is Portugal's pass over to hydrogen project.
Turing as we're rolling out we also had a visit from Portugal minister of the environment and energy transition and the Secretary of state branches. This is a strategically important project and Portugal.
We also then have the announcements of our hero.
Ammonia Morocco project.
With his Excellency, the minister of energy mines, and the environment. This is the largest green.
Green hydrogen and Green ammonia project announced today's in Morocco.
And also we have the better venture facility as it was.
With meeting extensive renovation, which has since kicked off with reparations full change of the entire scoring.
So it's a very large space with this morning is now complete.
Continuing stock inflation of our clean room.
Yes.
So.
As we have always done.
We'll start with the slide that we showed in January.
Of the three key milestones we set for ourselves in 2021. So apologies. If this is repetition for everyone, but for good or bad we will keep presenting our progress against these three milestones throughout this year.
So that is just to recap this is the go live.
However funds.
This is to prove the industrial scaled effectiveness of our technology and to establish a track record for technology and capability.
Was the timing of strategic Mou's at the signing of.
Confirms the pipeline purchase agreements with technology purchase orders.
So that we would have those confirmed revenues and orders coming through in the coming years.
In the last years peak production the creation of our own production facility, which is obviously the benefits of that facility.
And the initial target we had to have the subsidy cut.
Come online at yearend. So we'll go through each of those.
During this presentation.
So start with with ever ever saw utilities scale demonstrates that the strategic importance for us to show interested parties to come in validate our technology for.
For phase one almost all of the trials are in stores. The wall suggests the Walter heightened management systems are in place the fuel cell from Ballard.
Has it been delivers we can already produce green hydrogen for testing purposes.
<unk> had issues with the delivery of membranes, which means that we are still rolling out <unk>.
To the systems.
As the membranes arrived.
Intents possible commissioning of the <unk>.
At some point next month.
For phase two civil construction is well underway structures.
To be erected this in the next months.
And he goes to be rolled out as soon as the membrane deliveries allow.
Right.
Hello, everyone. This is probably something that a lot of Europe.
We're waiting pool, and we're also very happy to be.
To be sharing this news.
We are some independent labs to come to Hebron and validate the performance of our solar.
Green hydrogen production.
In that room.
Our R&D team actually installed the next generation of <unk>.
So if you consider <unk> as a reminder, many of you have seen this will have in my hand is Suvs original Tivo solution.
We haven't said it before but the new lasers and great to see both.
It's a little less photogenic sort of with the idea of the previous one.
Bob.
Substantially more powerful so this is actually the Ebola.
That has one set being stored in.
In Edinburgh.
We are thrilled to.
The announcements to communicate that the independent labs has confirmed that the generation of the new.
Let's say.
<unk> is about.
10% increase in performance 12 with previous RASM.
And it's also a 10% increase in performance from what we had assumed in our 2021 plan.
We're thrilled with all the while the R&D team has been able to do on that and delivered without increased performance.
Sure.
Further when.
Now nothing on our production that's associated as I mentioned before.
We have purchased the <unk> production facility with a tied to grow up to an output of around 500 megawatts electrical is the capacity in 2025.
As useful associated renovation well underway next steps for the clean room to be installed. So that then the first production lines and also began installation.
As we as we had feared but we hadn't had confirmation.
Recently, the providers of some of the equivalents of the Robotize lines have informed us of delays of deliveries, which means we have to push the COVID-19.
<unk>.
<unk> to sometime in the third quarter.
Yeah. So this is one of the disappointments developments, but let's say it would be a constraining for we're seeing globally.
Police force wholesaler semiconductor and other components.
No particular surprise.
In the meantime, we will continue to use the outsource production facility.
Have today.
We've also experienced a number of disruptions to our supply chain ranging from.
Higher raw material costs.
Limited volumes of delivery and at times also quality issues. So we've had even components, which happened sort of such expense.
<unk>, which we had to send back.
To support the modification to the latest Tivo.
And the significant short term supplier constraints, we need to revise down our 2021 production guidance to between 150 to 200 total units.
Down from 600.
We keep us all of those with the new.
Tivo technology, but still a lower production target than previously announced.
We are working with our suppliers to unload the constraints that we've seen this year for 2022.
However, due to the delay of an effective tax.
Actually being up and running we also have to revise our 2022 production targets down too.
<unk> 2000, 2500 units down from about 4700.
This is the total production of our production partner facility as well as the partial year production has been a benefit.
There will be no change to 2023 and subsequent years, given the better than double than by then be fully up and running.
This has minimal impact on our announced business plan targets.
Tons of net income.
Even.
For 2022.
What we will see in expenses into two is also benefits up some grants that we mentioned in our Q2 minutes.
And financial aid for the <unk>.
Development as a reminder, the <unk> facility.
We can apply for financial aid.
For a substantial amount of those costs, but we could get up to 25%.
Financial aid.
Development costs.
Now for business developments, Idaho policy too as well.
I'd like to thank you for attending our comparable results presentation at the past months was especially active in the pursuit of our strategic plan to develop.
A clean hydrogen projects, which a final priority negotiation multifamily units and <unk> with some of the world's leading companies involved in oil and gas and ammonia business as mentioned before our use of packaging cost to develop green hydrogen project and solidify our franchise.
In Portland, Maine.
Mainly as possible.
And then the loss of Africa more precisely.
Increased interest from several other countries in the world.
Despite our international growth and spot.
The <unk> business in different geographies.
I'll, let you have a tremendous advantage when compared to other natural license since we put those in hydro directly from the compression of solar radiation.
Allowing for months to reach the highest efficiency and lower labor costs, but also allow them to develop projects and in locations completely possibly Additionally, our technology multiple suits.
It will.
The world regions with higher levels of <unk>, which are the regions that have been announced the biggest green hydrogen projects for banks, such as Australia, and USA, while we already incorporated seizure fuel, Australia and fusion fuel USA and.
And also when evolution, India in Chile, where we are negotiating the price.
Demonstration projects.
That will be the presentation of our business.
As part of the Southern Europe, Europe, Portugal revenue going forward.
Our mutual shop that in the short term.
That's right.
Yes.
Schuff and global section plants in the south of the country.
So altogether represents installation of around 300 diesels.
Our aluminum seven five megawatts, we are also developing <unk>.
Anthony and hydrogen projects in the <unk> area, which altogether represent installation of around 25000, we will solve that.
<unk> hundred megawatts in Hypersound produces will be mostly injected in the natural gas pipelines to natural cash will be used to produce.
Ammonia.
At a high percent of carrier to be exported to the non computer will be started in bottles to supply industry and also to supply hydrogen refueling stations in the developed markets under development of DC.
Finished projects, we are executing around 800 X pass on land MTS patented permitting process for the.
Such projects that will be installed in 4045 the projects were submitted to end up being the fund's funding.
Funding programs available for the capitalization, which I will expand on Martin passed the payoff in the next slides in Spain as factors, which is the same as the one we can finance for Portugal.
Developing demonstration plants, which altogether represent the installation of 325 equal solid which is the same as saying around eight two megawatts equally fun, we established a partnership cooperation plus inflation of several weeks.
Thanks Jay.
Expect to announce a plus.
Projects.
We are also under negotiations and some of the most important oil and gas companies and to develop new high power Gen project, which represents the supply on the escalation of around 30000 people settlements, which means about 700 megawatts.
The megawatts in the next five years, how that happens we are also negotiating and securing land.
For more than 1500 <unk> it's.
<unk> installed a process, we expect to announce the CPC contract and HPA and Satish limit again, the projects will be sitting at two income funding programs available sharp recovery in Texas.
Negotiations are going with an oil and gas company to developing either been project, we expect to announce the installation of the first demonstration plant very soon in Morocco.
Specialty estimates we are developing an amazing project to produce 71000 tons of green hydrogen which will be used in.
In the production of 180000 tons of ammonia and then our partnership with two important Global conference I will now explain the projects and the module sales in the next slides that we have Australia, which is a priority market customers in Europe as well.
And depending on conditions in terms of software regulation.
While reaching the lowest level of life of harvesting the wells to date.
Simply we incorporate the confusion Qos, Australia, and we are under negotiation, but the development of Tesla demonstration project with Ampol with USA, Athens, and promising market for hydrogen.
Hi, Ghansham.
Non-GAAP green hydrogen projects.
Last quarter, we incorporated institutions yielding website.
<unk> already submitted an expression of interest to the department of energy and part of the development of a project in California that can get advantage of the high level top software recognition in the Central California ASP.
We will allow us to obtain a pending lamb of life.
While the supply of hydrogen refueling station spot fuel cell electrical vehicles.
Additionally, we are developing the business.
FX et cetera.
Main reason Catherine.
We have developed a cooperation with CDC and global OTC contract to develop <unk>.
And projects in the region, we are in the negotiation at 2000 hydrogen projects in parallel conscious that charter Laccadives arms.
Oman, Qatar and most recently in Egypt.
And yet as we develop the cooperation with <unk>.
Energy.
Again, it's a global EPC contractor in India. After the Delta in hydro and the country negotiations are undergoing between spot ethylene hypersound demonstration plants, we should expect.
South America, we are under no.
Calculations, you need a strong development in south Green hydrogen project.
Now a more detailed information.
Gotcha.
Three new hydrogen projects to partner with key functional operational program funding sustainable and efficient use of the subsidy that first project is being developed practices fuel is called people and.
And can see some inflation.
<unk> hundred 70, 80 people solve us to produce 400 and atg.
Tons of Green hydrogen thing you have to be mixed.
And injected in natural gas and total doesn't mean ammonia. The project has a global impact of around 18 years and recently received the approval from wholesalers partner brands.
$3 million to GAAP net profit removal.
I must say that the lands and start the project.
Operating hydrogen plants already secured.
With the second and third projects.
As technology supplier. The second project is being developed by putting the NFC Portuguese company.
That does conclude some commercial assets and the consumables.
<unk> on the installation of the supply and food installation of 62 Eagles at with Iraq, Iraq estimation value of $2.4 million.
And that project in small molecules.
But it will be detailed by cabinet energy again, it will be 62.
<unk> and <unk>, the same investment as to LNG.
At our <unk> project, which consist of installation of 25000.
Following.
To counter the megawatts.
We will be development. We will go next five years was recognized by the Portuguese government as one of the projects.
74 applicants the renewable at each site.
It means.
Barton projects of hormonal therapy and agent mix.
Our recognition of our projects by European Commission absolute DC projects until the end of this year now more awful.
As explained before we are developing a project in which we called people ammonia project costing, particularly not installation of green hydrogen.
71000 tons and defensive Morocco that will be used to produce 180000 tons of being ammonia and will abate.
180000 tonnes of steel per year. The project was recently announced and the other ceremony in Rabat hosted by the news that our balance sheet and have the global investment of more than 850 EMEA.
The problem with the project.
John Dibella bi fuel and consolidated contractile scar at Lobo, who can see contracted and T. Paul one of the worlds, leading energy and commodity companies and that will manage the off take of the leading ammonia and the monetization of the certificate of Iot.
I think HEICO ethylene ammonium building new spot local fertilizer industry and to be exported a pathogenic caveat carbon out of Europe, where it will be towards the bank account is getting hydrogen to be weak and the natural gas and being injected in the natural gas grid and to be exported to the.
A copy of the two consoles too.
Potential industry. The global project will be developed in the next five years, but we really expect to start construction of phase one.
Consisting of installation of 180 people solid and next year with the age of Commission part.
End of 2022.
Sure.
Thank you John.
I'll just quickly recap on auto insurance fees.
One milestones.
This is again the repetitive spider will always come up.
April comp line as mentioned before.
Phase one study.
It has to be commissioned.
With.
In September.
Sales to construction well underway.
Shortly as soon as the membranes of model also asked with mistake of phase III.
The Evercore Sis already.
Working as is.
With its intended purpose.
Those AC DC.
Technology demonstrations with clients.
Which is why we believe this will show the <unk>.
<unk> to start planning the HPA is confirmed orders we've already signed significant Emma use as we mentioned throughout the presentation with ample electrical CCC veto.
We have a strong very strong participants.
And now we're moving into the HPA is totally with the postponing projects major step toward already there.
With that project.
Confirmed.
No.
We hope to be able to share with you some very good news in the coming months.
Production facilities.
Obviously with we're happy with the better product performance.
Productivity coming out of the production facility.
But disappointed that we have to delay the go lives into the sort of third.
Wholesale.
<unk> 2022.
Obviously do whatever we can to speed that up.
And we will in the meantime continue to count on our production partners to deliver.
For the projects in the meantime.
Bye now.
We haven't we can open up a pool.
For Q&A.
With me.
Let's see there as well, but also how to fund it.
<unk> joined us as head of <unk>.
<unk> production after a couple of weeks ago.
Vented projects will be fully <unk>.
Fluid so there'll be the one working miracles to get that faster.
On the phone.
So join our CTO.
We have Jeffrey I'll chime in as well.
Sure.
Police people 10 type in the questions then.
But it too.
To advance with the questions whenever you own.
Okay, great. Thanks.
Yes.
Handful of questions.
Okay. That's good feedback on my end.
Problem.
So we'll go in and ordered that the questions were asked.
Sure.
Just waiting to see it.
And Jeffrey R. R.
Greg So actually the first one is for examine himself.
The expected technical lifetime of the Heber solar units.
Yes, good afternoon to everyone.
The Eagle Toyota units AB ranked for 25 years to be down.
On the steel sector and bundles.
Consolidated models and so on so are the equity berries.
Sure.
So we have an operation.
Sure.
25 years, considering that at the.
The most critical issues.
Regarding the main brands <unk> 62.
Seven years, so the system.
The last time, we will have to see duties.
Arthur.
The bank.
After the equals and dairy costs.
Included in the operation and maintenance costs.
The lifetime, when we calculate the <unk>.
Conversion costs better able to reach.
Being in a specific location with respect to radiation solar radiation.
Sticking with technology. So a question about the design improvements have been used.
Okay.
I alluded to this have they improved efficiency lower production costs lower raw material requirements. If you could talk a little bit more about the design improvements from Gen. One to gen. Two.
Yes.
<unk>.
The design.
And did the implementation date dancing amazing neighborhood.
And that's created.
A series of them.
Organizations, mainly.
Named rock through distribution network.
The address and collecting networks.
That has allowed us.
Even considering is baked offers raw materials globally on the market.
So we have some some improvements.
In system.
The improvements on the DTC.
He is not.
An improvement of <unk> <unk> is an improvement.
Our system is able to operate in a low radiation. So the total.
In France.
As a result.
Of around 10% more.
As explained in the <unk>.
In the.
The RFP testing performance that performance were.
Were made that.
In a very simple concept how much came from from the Sky and unmatched ivers income from the outlook.
So each one is that we can be breakeven <unk>, Missouri booth.
<unk> bye.
And I know the team laboratory that.
Windows.
Dolby laboratories and <unk>.
Performance was amazing through.
From barium continuous barrier.
Also improving.
Coffee saw for radiation radiation and so on so it's.
It's a very simple concept, what the energy I came from this and how much.
And they are being produced and the results were.
Sure.
Hi, Ben.
Members that we are considering for <unk>.
Next year.
Great one more question for you before I share the love.
A question about water needs health at the IMF water source for the ever project and more broadly how much of a water availability and water scarcity factor into <unk>.
Product and other locations.
Exactly the water.
We need and what their weeks sort of beauty.
We needed to DNI deepwater ingredients, so the type of process.
The bank is stronger lead from what their thoughts on the integration of <unk>.
The neighborhood, we get with water from the ground.
It's a very brown Walker, we've a lot of.
Ireland and so on so.
In the plants.
What are your screens.
Ms.
Specifically he gave wiechmann typically designed for strategic Walter.
It's on the full power plant on a region.
We the PDP.
Around 500 micro Siemens So goes inside the range 500, micros evens that goes outside the ring.
600 microbes with so.
For the requirements.
Even better from the minimum requirements there are people solar.
Max.
Great.
As always a customized solution.
Project by project dependency for the work that is available from the network piece, we do extra bring it from the ground. If we had to bring goods from the SEC that he's an additional process.
To fortify the water and so on so it's a custom.
<unk> solution is not a solution.
<unk> is a custom solution designed for the type of work that off.
Location and Debra was already a strong challenge because the walk there.
It was not so good.
Great. Thanks, John.
So I'm going to throw entree into the fire here only two weeks. After he has joined but anybody can feel free to go in as well. So it's a question about the production capacity.
But that facility from 2023.
Until it is fully built out.
So sorry.
You said the production.
Put up evolving in 2023.
Correct.
So.
I'll answer that.
Not through.
Perfect.
Andre too early too.
Because of <unk>.
<unk>.
Excellent.
Sure.
Yes.
The content.
Around about.
9000.
700 units.
So those are the units.
Great. Thanks.
Erica.
So with reference to the investments made in raw material purchasing inventory in response to their shortages.
How many heber solar unit can be manufactured with.
The stock today.
With the appropriate level.
It all depends on the.
Why is all of the members. So we have a number of stocks so substantially more.
So those.
And then that were announced where we will produce.
There are a couple of critical components, but obviously all the missing pieces.
The main calendar.
Finally, as I mentioned before the membranes.
Having.
Okay.
A high degree of flows and the members that are arriving.
To us it is leading up to <unk>.
Mr number back when Tesla partner is looking to increase production.
So they can.
But that is one of the critical critical bottlenecks. We note that in addition to the lenses.
The lenders production.
So the concentration piece.
It has been.
With some of our providers and even.
Throughout the year at times, we've been obtaining the raw material.
So we have been trying to stock up we've been seeing the raw material as the year has gone through.
We have so some of the metal.
More both for 600 and more.
So wherever we can we are building up a strategic stocks, but unfortunately, what we need is one or two components to fall short.
You don't competent Passover.
Great. Thanks, very that we received a question on what are your expected economics.
At HPA is both for fusion as well as for the customer.
Walk through.
Purchase price.
So I'll talk about the.
For fusion to I'll, let Ron talk about the economics on the client products of the prices.
So on all sides as we have announced from the Salt score Hca's.
<unk>.
Aimed to do.
Two targets.
And IRR basis is around 20%.
Our targets for the displays.
And whether that's related to low between the.
Around 9%, 10% on.
On the Unlevered basis, Okay.
We negotiate projects either direct uptake of the hydrogen.
They don't look so much asset and IRR.
Either from the efficacy.
That calculation is based on the lateral life cost of hydrogen anomaly.
Our clients most of them they use this contract up 5%.
But the level of cost of hydrogen is calculated considering.
This complex of 5% some other income.
Yes.
These power projects.
<unk> getting high ambition to get to the final okay. They would want a model.
Type of IRR.
Internal institution for Europe.
I will just to Orlando for the clients.
Part of that level of cost of hydrogen will of course be depending on the amount of.
So one of the byproducts eligible pool.
So.
Can be a substantial irrigation and globalized spoke of Hudson it yet.
Great. Thanks, just sticking with.
Given the recent progress.
Congress.
Thanks, Chris.
The Gulf region.
Sorry, we couldn't hear you.
Is the question about given the proof of concept at ever are we seeing more interest coming from from companies in the Gulf region.
Yes of course.
Every project 110 quarters at just lots of demo flights and real projects with this symposium uptake by formats.
We'll demonstrate degradation and Google than let's say the ethane that NPL persistence as soon as we don't want to chase that.
All of our requirements it's calculated.
On the solar.
The level of solar regulation.
And temperature and then of course, when we open them up.
The opposite it's just the.
<unk> the population with <unk>.
Yes.
Local solar radiation at local temperature outstanding profit.
We have two components.
Received increased interest not only from EMEA region, let's say.
From.
All the regions that Ron mentioned as he went through the math.
We have had policies interested in business from across the globe.
Great question here.
Either John or Frederico, perhaps.
What is behind that.
The 25% increase that you mentioned in raw material costs, driven primarily by polysilicon costs or other components.
No.
I gave you two examples.
The total menu since October last year until yesterday.
<unk> 51 per cent.
Steve.
He is around 40%.
So he came from raw materials to additional raw materials that.
Are you being the huge amount of industry.
We are facing right now strong increase.
For several reasons.
In Europe for one of them.
Equally the in park and.
Borrowings taxis that European Commission is creating a little meaning coming from China.
To explode immediately.
Only this too.
Our materials.
They are more but don't leave it to our materials.
We used a lot.
Our tracking system in our models and so on.
We also have a strong increase in the Navajo metals.
Next we use like gold we use gold right.
Breaking that like Edd.
All.
Ranking of logs.
The third group.
Is related to electronics electronics are right now.
The main problem among electronic components.
I'm not sure the increasingly on costs, but the availability. So we are facing.
Strong difficulties.
Negotiate with the suppliers and to keep our share impact.
Among some of them.
I am not expecting long order that they do not know what's going to happen. So the short order there.
Right from the preceding department to try to secure as much material as possible.
There is no idea whether this is going to finish if you are going to finish. These one year two years in six months or in Mark barrier for sure cannot be sustainable.
The industry will go away, we will face some difficulties this realm.
Raw materials keeping queasy.
We have our precision departments, just fighting to keep the securities mix product as possible in order to avoid that.
Sharp.
At least not providing but many Mike charters.
Thanks, and then on the subject.
Apply chain issues, how critical do you see those issues might be in danger or delay upcoming projects and potentially scare customers.
This is affecting all the value chain.
Not affecting OEM.
The only thing we can do right now.
And as we have predicted in beginning of the year.
To go to the market and bye bye.
And the <unk>.
Mainly the raw materials there was one question they're asking.
For Mitch on many of our as we have been signing raw material, we cannot say light sweet.
But we can say that SKU, we have for a huge amount of them because we are executing what we added free.
Back to Beacon.
Martin easily sharpness.
Anyway.
Right now we are already preparing.
Stocks for the plans are for next year.
Thank you Sir Frank continuous site.
That makes sense.
When we say almost say that the clients stay out of talking about the delay.
Most of the Opex.
I understand.
Really a site of moving from the box.
While natural gas increased fivefold electricity.
The increase of the two acquisitions.
What we see today.
One year ago, most notably the.
<unk> consumer.
Also the hydrogen.
Look we just bought a very high bar to the HSA are all as pattern to look much more in much more detail to the green hydrogen because they know what do you think is on track for hydrogen projects mobile device.
For the next two.
225 years.
Most of them.
As we explained before <unk> multiple.
Most of the cost of our hydrogen is is just the investment that is done at the beginning of outperformance.
So you have to pay out of place about small delays, but they know that future will be much more complex as they remain on the gray hydrogen.
Thanks, Eric I guess jumping off of that especially in light of that report that came out recently about that.
Blue hydrogen is a pretty straightforward question do you have an estimation of.
<unk> equivalent emissions per kilogram of hydrogen for.
For <unk>, our solar module.
Welcome.
I think our.
By month on a running basis.
We don't.
That's going to impact.
<unk>.
That said.
We have not yet calculated.
<unk> are producing.
The units so I'm not sure what the question was on the actual production of the units, but the play just thinking of green hydrogen buses blue hydrogen.
That should be no carbon emissions involved in our process.
Yes.
Okay.
On the other side, we are delivering a huge amount of oxygen into the year.
I will say that.
When <unk> is able to deliver to the air same oxygen.
Around the H E B III.
In three years, so we have not been meetings here too and we I believe we are P. J.
Okay.
Great Federico in light of the updated forecast what is your view on liquidity going forward.
Hello.
Forecast actually in a way.
Helpful. All liquidity situations because most of the projects we wanted to do in 2021 and also the majority of 2022.
OEM development.
What's required.
And capsule.
Injection or capital investments from all sides.
The reduction of that deliverable also reduces the actual.
Cash outflows and investment that we need to make.
And the same years.
What we have done with the 2022 with a production reduction.
Produce more of them.
Production going to our projects.
Since the policies purchased.
Perfect.
So the CDC.
Sort of one off revenue is what you see with the sale of our Hudson generator.
We hope to have those lessons exit in 2022.
And we will.
Like we take more of that sort of.
Reduction in investment and deployment of people so the projects.
The owned and operate ourselves.
Okay.
We would like to have done some more and to produce more.
But on the also on the.
<unk> it actually produces a bit of pressure on our liquidity position.
Thanks, Peter I got a couple of questions here about hydrogen storage and.
And compression.
So for how do you store hydrogen for electricity production.
What are your storage capacities and Debra.
In <unk>, we have an in line system that too.
As to levels of compression.
This driver.
It's a level that allows us to wait.
To the solar radiation variation.
The lack of pressure and second level, we will start in net sales of 300 advisors.
In the wholesale is connected to the.
So the Spanish banks cells.
And then taxes breaking at night. So in fact, we are receiving solar radiation during the day and to leave and you execute key ignite.
He is working like a simulator concepts.
Oxford solar with batteries.
But to be completely a different approach.
At.
The energy.
Equal usage.
So it's practically.
Practically in line system.
That delivers some hours later, the hydrogen decade being Brazil.
There is not any startups startup she is able to start around two to three days maximum.
The better the license we have is that we.
We can only deliver denitrify Cte <unk> Senegal winds down.
So during the night.
In some ways to accommodate to do.
The difference of renewable energy at night and day.
So it's a prototype projects ease of administration projects.
In fact behind the compression is exactly equal to any other projects.
The users are micro events in this particular case these electric CD at night.
Andrew.
It's a simple.
In this project we will also.
Thanks.
Not now after commission.
Different.
Situations of connecting directly when evil.
For sales between.
Also allow us to create value.
And you have new products anyway.
Yes.
And following up on that and I'll loop OIBDA Hillary in here so for.
Sure.
So we are seeing is.
Or for the Green gas phase two of ever what pressure is required for blending in the natural gas network.
You see.
We will put this the hydrogen will take the high percent out at today.
That.
Gas has a black box fresh off one and.
And then it is compressed.
And the stock and vessels.
The compression needed depends on the uptake.
So when we report income when we inject high.
Hydrogen into a refinery we need to supply the hydrogen at the pressure on her arm 29 successful box.
One supply high margins are higher.
And with inflation.
The best solution economic solution is to supply the hydrogen all add up to the end of it Bob.
So in the case of finished.
Several possible.
So we can suggest no Brexit lithium supply pressure.
For the first profit.
Low Brexit, so we will inject a sandbox, but high pressure.
At 60 box, so only depends on the quantity and water pipeline.
We are injecting.
The question is in order to allow us to compress more or less we have to file some compression systems and started to start.
The hydrogen compressed to be injected anomaly.
First of all because we cannot reject the hydrogen.
Yes.
Yes.
According to the hydrogen that some students.
In the daytime so we have always thought pop up with hydrogen and compassion and injected in our conference call.
Thank you Joseph Carryout for Europe.
There are a couple more questions squeeze in here, it's a question of RMB.
<unk> tests.
But there are three different tests part one is done and completed successfully what do the subsequent.
Two and three focus on <unk>.
No.
The first win easy to win that use performance for DC, the real fixed the remaining.
The remaining two.
He is.
<unk>.
To meet due to the quality of the aggregate, so free Brazil, San Jose and $99.598 five wherever.
And third when is that.
Longer barrier. So once you have agreed with them.
<unk>.
These are tests.
Several days in a continuous way.
<unk>.
Resisting and also regarding the weekend and.
The write.
Write down of the system. So in the morning, when defend these already tied to degrees system weekend.
It keeps producing during full day and goes down.
In the end of the day, so it's a continuous barrier. So use no more than is equal to the first win for it for a longer period and covering to wake up and do that.
Right.
The system.
Great. Thank you Brenda.
Four questions one on the competitive landscape, how do you see as your biggest competitors if any I'll open it up to anybody who wants to answer.
So.
I'll take that.
The landscape.
I will say that could be.
The large providers as electrolyze income so on R&D.
Space large players origin significantly.
Significantly larger than we are.
However, once the one of the.
Particular sort of advantages that we have we are designing aluminum projects.
So when we were growing up with the projects, we are partnering up with the clients with often notes with the uptake.
And then.
The majority of cases, we're actually designing.
Hand in hand with them.
With Walker, we are going into a competitive bidding situation.
The competition.
At this point that would likely come with the market develops.
This is such a new market with so much interest.
I believe this is generally the case.
For many of the players as well I don't think we are unique to us.
But it is.
I wouldn't say that we are coming up against.
Kitchen.
One technology against the other other points in time.
Okay. Thanks, Erika so we're coming up here on the top of the hour. So I think all.
We'll wrap up our Q2 update call here for those questions. Eric here that we didn't get to please feel free to reach out to IR at <unk> Dot EU and we'll do our best to answer those questions and otherwise that thank you for joining US we look forward to keeping you updated.
Yes.
Yeah.