Q3 2021 Fusion Fuel Green PLC Earnings Call
<unk> also generate extraordinary returns for our shareholders I hope at the end of today's call you will feel the same way.
Now Unfortunately for our share price fusion does not make electric flying taxis.
The good news is that fusion does have proprietary and proven.
For producing green hydrogen.
And Thats a market with a strong wind at our back.
The private sector has finally realize the importance of decarbonising economic activity and so the level of inquiry and interest that fusion is experiencing across geographies.
From potential customers.
<unk>.
For either our technology for our Green hydrogen has never been greater.
Simultaneously the public sector has arrived at the same realization about the importance of combating climate change and so governments around the world, they're making billions of dollars euros and pounds available and grants and.
<unk> to jumpstart, our global hydrogen economy.
In other words fusion is well positioned in a market that should experience a steep growth trajectory for many years to come.
Now unfortunately for our share price.
<unk> is not looking to make electric pickups and Suvs.
Subsequent $150 billion market cap company, we all know.
On the other hand fusion does not face a handful a behemoth competitors, who will be fighting tooth and nail to retain market share and who benefit from significant legacy infrastructure.
While the number of fusion's competitors are somewhat.
Larger the market for Electrolyzed as nascent and from my perspective entirely up for grabs fusion and our combined CPB micro Electrolyzed with technology gives us a differentiable edge versus our competitors.
Now you might ask.
Well unlike blue hydrogen are.
With low grade solution is not dependent upon natural gas business.
Unlike traditional centralized electrolyze, there's our integrated solution is not dependent upon electricity from the grid as an input.
And even if electricity comes from renewable sources its price may be influenced by the market setting price.
Our indexed fired generation.
And the price of carbon.
Their presence and future emissions trading regimes as another layer of uncertainty for the cost of hydrogen that is exposed to natural gas at any point in the value chain.
Given the volatility of the price of natural gas.
Of gas the price of electricity from the grid.
And if the price of carbon offsets.
Fusion solution can provide a consumer of hydrogen with certainty of costs.
Many of the potential customers, we are speaking with find compelling.
With the differentiable solution that addresses what will soon grow.
And a huge market and with an enterprise value net of cash a little more than $100 million.
I'll just leave it up to each of you to draw your own conclusion as to whether you find fusion shares to be an exciting the risk reward opportunity.
With that I'd like to turn and turn it over to Frederico February the Chavez.
<unk> Fusion's, Chief Financial Officer to walk you through our third quarter update.
Frederica.
Great. Thank you very much.
Afternoon, everyone and thank you for joining us today.
Will take us through the financials and ill keep it short with earnings.
<unk>.
To get to the latest news from our business development team.
Each day.
The previous models I will quickly recap of location tool is all about.
Does anyone new on the lines, so bear with me.
<unk>.
Our CFO fuel we've created an integrated so thats a hydrogen.
Solution, it's based on our proprietary miniaturized patent based electric Plaza.
Combined with a concentrated photovoltaic solar panel that you see on the bottom left so we attach a miniaturized electrifies us directly to the panel leading.
Adding to our modular and scalable system that can deliver highly competitive green hydrogen.
Our system is off grid and deadline.
To the energy market volatility we've been seeing recently.
I'll touch a bit on that volatility at the moment because this year, we've seen significant disruption in the global hydrogen industry.
Overall.
Until recently companies needed to consider paying a significant premium to decarbonize their hydrogen production.
With a huge increases in the price of natural gas, particularly in Europe, both green and blue hydrogen production cost of more than doubled.
And this is even before including.
<unk> carbon charges, which are only expected to increase and six in Europe and.
This market of today Green hydrogen is no longer a premium product.
So the elements of the green hydrogen market have also been affected with the <unk>.
<unk> the energy price.
For example, a 10 base system using energy from the grid has seen the energy cost of producing hydrogen rising to around seven euros per kilo at power prices of 140 euros per megawatt hour.
As was the case towards the start of this month.
Another told me yesterday power prices.
Prices in Iberia.
At around 200 euros per megawatt hour and above this would lead to a cost of over $10 per kilo and energy costs alone.
Four.
Electrical is a pump that is connected to the grid.
The way forward in this industry is crystal clear.
Green heighten.
It must be produced with awkward solutions like our own Heber solar unit.
This is the only way that green hydrogen can be stable assets.
I'll provide a brief review of the third quarter financial highlights.
And the latest developments.
But I will be brief I'll focus mainly on those but that won't be covered later in the presentation by Baidu app.
So.
Q3 saw a significant development in our relationship with clients.
<unk>, when we signed the contract to sell.
Do our first tech sale.
Hydrogen so the house Heber solar pumps and hydrogen refueling station.
With excellent in Madrid in Spain.
We also received.
Three approvals of crumbs on three different projects for involving fusion Q technology.
And we've started the licensing process.
Yes.
Process sorry for.
<unk> hundred 80 different screen hydro projects in Portugal, and Spain.
Far as we can tell this is the most of any one so far no. One that we've had oil cuts as green hydrogen projects in the licensing phase at the moment.
From a technology perspective, we've been producing green hydrogen and <unk>.
Broker several weeks now.
Currently most release it into the yet until the plant has been commissioned for the system as lines. We've also independent independently verify the hydrogen production with fantastic results.
And we've seen results above our plan our plan system efficiency levels.
To focus little bit on.
Build out throughout the year.
Continue to build the strength of our bench of future fuel with recent senior hires being Andrea chip production offset in micro garner our head of EMEA and <unk>.
David logo Australasia among others.
This is a trend we expect to continue well into 2020.
The team we want to focus on building our team and will do so to position us for growth we expect to capture.
For our quarterly financial results as expected our top line remains to border client activities as all the projects. We are currently installing a fully owned by <unk>.
To only recognize the revenues from these investments when the projects go live and start selling hydrogen.
Going forward, we will not book revenues or cost of sale entries on raw materials that are consignment spoke between food and fuel our production partner as we have done in Q1 and Q2.
We have removed that from the revenues and.
So we will to make sure that we avoid any confusion between mortgage relationships with clients buses consignment stock.
Yeah.
Our operating costs.
Significantly impacted by noncash expenses once again is related mainly to the SaaS based payments from the earn out consideration from the merger.
Last year.
These will continue until the end of June 2022.
I mentioned reported a noncash expenses on that first line, although the total operating expenses.
Cash based operating expenses saw an increase driven by the growth and the teams as I mentioned before.
<unk> also.
Increased professional service costs this ranging from legal insurance all the way to the laboratory.
And engineering work done.
Across.
Yeah.
Sorry.
Regardless of laboratory cost.
Our <unk>.
Profit was driven by an adjustment to the fair value of the warrants with a positive impact of $7 5 million. This is a noncash item to our P&L.
Okay.
Our cash balance at quarter end was just over 42 million.
The main uses of cash in the quarter was investments into raw materials and securing.
Securing our supply chain.
Investments in development of our <unk>.
Renovation work performed on all <unk> facilities, and then payroll and staff costs.
From our outstanding shares a physician.
Gains unchanged although.
In the third quarter, we did issued restricted stock units. The 26 employees as part of the new equity incentive plan to align those those individuals and teams with shareholders as well as to serve as an incentive and retention tool.
We do expect to use these are issues going forward.
Although in SaaS.
Our rewards too as well as a way to attract talents.
At the sponsor of the year, we highlighted the following three key milestones for 2021, the <unk> pumps go live this is our.
Real scale.
Demonstrator. So this was key for us and we've now been producing hydrogen.
<unk> four.
The first.
A few weeks if not months.
The signing of Mou's, HBA contracts, lower hydro, partially sabine and contracts as well as type sales.
Men's.
Some of those before and global build on that a little.
And a little bit and then there's the establish the establishing our own highly automated production facility.
Last quarter, we focus on production and we provided updates on timing and volumes. This quarter, we will focus on business development as the production facilities.
<unk> build out continues.
So as mentioned before with <unk>. We're pleased to report that we've completed the construction of <unk>.
The development of that phase one we have now requested the commissioning of the plant so that it can go lines and.
Hence that status or maybe.
So the green.
As to civil construction is complete and the truckers are fully installed we will rollout <unk>, our miniaturized electrolyze us as a supplier of membrane a mile over the coming weeks.
With this I will now pass over to Shlomi, who will update you on some of the projects fundings in licensing.
We.
Going on okay. Thank you.
Thank you your product and in our quarterly and results presentation. The past months with specialty active in the pursuit of our strategic plan to develop green hydrogen project, which defined as a priority the negotiation of Mou and HPA is with some of the worlds leading companies.
Involved in the oil and gas and the module business is related to the closing of the pledged HPA and tech sales contracts in Portugal, and Spain, respectively.
The project the project in Portugal.
In Portugal, we are happy to announce that our Eagle So project in CNS.
It was one of the of the cost of Green hydrogen projects that got funding approval from <unk>, which is <unk> operational program funding sustainability and efficient use of resources. The project consists of installation of 178 people solar to produce 418 tons.
Operating hybrid per year to be mix and injected in the natural gas pipeline and produce also getting ammonia project half of global investments of around 8 million euros and will receive a grant of $4 3 million from <unk> during the construction site Orlando subject pass what's fulfillment.
Out of which in the past will be used for the installation of the project, which is in the permitting process and local authorities and national Environmental Agency and we expect to start construction until the end of first semester of next year and commission the project until the end of next year.
Here's a few of these also involved in two additional projects that were also approved by <unk>, but in this case, we will lock as technology provider.
With an expected textiles of around 5 million units when putting the three projects represents installation of 304.
Evil Solus and altogether, we will reach a capacity of seven five megawatts.
In Spain, we signed the contract with <unk>, a leading European fuel logistics and storage provider to develop a solar to hydrogen plant to supply green hydrogen.
The regional.
<unk> is the first third party sales of equals solid units, which will also produce and supply getting hydrogen one of spine surplus hydrogen refueling stations. The excellent project images positive start installation of 21 people saw us to produce more than 40 tons of hydro.
Green hydrogen per year being 2000 tonnes per dose during.
During the daytime my direct combustion of solid radiation into green hydrogen and additional 2000 tons. During night time using illustrates the outsource their getting hydrogen produced will be used in the hydrogen refueling station designed to supply.
Fuel cells electrical buses this project's strategic parties with you Cogs.
The first of several other projects, we have under development to produce and supply of green hydrogen to hydrogen refueling stations.
Okay.
In Morocco, we are developing the green.
More ammonia project in the region of our Guardian Suezmax that together with our strategic EPC partner Pardon me in a region called CCC at consolidated Contractors' Company. The project has to produce 31000 tons of green hydrogen to be used in the production of 180000.
Operating ammonia that will be shipped from I've got two two ports in the north of Europe, where it will be commercialized directly to potential industries willing to decarbonize that activities are will be correct to obtain again green hydrogen which.
Which will be blending in natural gas and injected in.
The clients on the lot of units.
It's all one of the worlds, leading energy and commodity company and we will manage the uptake of the <unk> ammonia. The land of six aircraft to inspire the project is already secured and the project recently got.
Obtained via first authorizations from local authorities.
In the construction of phase one consisting of 200 people soulless getting first semester of next year with EBITDA at the commission all the plants really phase one and feel the end of the year.
Yeah.
Here's a few will be fine.
Very aggressive strategy to develop the maximum green hybrid.
Shannon projects possible with an aim to submit them to funds available worldwide for the carbonization of the industry. Those funding problem programs are currently available mostly in Europe.
Australia and U S site as part of the strategy, we were happy to receive the confirmation that our.
Green hydrogen project being seen as well, it's one of the key projects selected by the Portuguese government at each site project it meat, which means important project of common would be an interest from a selection of initial 76 projects is defending partner shipments in the company's strategy to develop.
Hybrid hydrogen projects and submitting them to be funds available in the next couple of years. The funding problems are crucial to allow reaching a low level of life cost of hydrogen to compete directly with the actual prices of brown and get a hydrogen.
Favorable in Portugal.
We submitted proposals for the pursued where out of 40 million euros.
The call.
The three projects were submitted and approved and we will receive a grant that altogether will reach around 10 million euros.
<unk> recently partnered with Alfa until launch.
Getting a PR or which means European funds for a recovery and resilience, which components for the carbonization richest Martin two part two 4 billion euros.
Six projects the first call.
We've made the gas component.
But altogether will represent.
Around 176 million euros textiles, we are preparing three projects to be submitted until the end of this year to the component 14, hydro and renewable gas production, which altogether will represent around 45 million euros.
In tech sites. Additionally, we are preparing.
<unk> is a green hydrogen projects in statements and to be submitted to the innovation call interventional funds call until March next year.
We were involved.
Sorry to play and we were involved in seven projects that will be submitted to the to the move to funding.
Brought them for sustainable mobility until 2015 November this year, we spend about 100 million euros to award grants for Decarbonising mobility recently, the Spanish government also launched their own European funds for recovery transformation and resilience, which components.
Well, the carbonization, which smart and <unk>.
$8 1 billion euros of fundings, we are developing several projects to be submitted to the components for renewable hydrogen sustainable mobility and trying to it would be in transport. These projects moomba those getting hydrogen to be sold.
So between Dr. Ross take us either directly or landed in the natural gas pipeline and to hydrogen refueling stations. Additionally, we are preparing their green hydrogen project in the south of spike to be submitted to the <unk>.
The pension funds call on March 2020.
<unk>.
Given the significant significant project pipeline in place to have secured the sustainable amounts of land.
In Portugal, Spain, and Morocco, and Portugal, we secured more than 1100 hectares of land in several places like CMS.
One evidence that the lag and that's out of those projects six of them are <unk>.
And the licensing process displaying the secured market why not more than 1300 excess.
And where all of us to deliver the cost of what might be out of those projects two of them are already.
Finish the licensing process in Morocco, we secured 600 Ccs pass we had I got in a region of Suezmax class and where we are developing.
Ammonia and Morocco.
Fusion fuel started.
Activity in Europe through infusion.
And what's the market size of a developing business in Portugal, Spain, France, Italy, and Greece, Morocco was include in including infusion tool, Portugal trapped instituted importance of each market for the development of Green hydrogen project and the good commercial relationships that we have for several years.
Fusion.
We then incorporated.
So the fusion fuel, Australia and establish a joint venture with a volatile developed business in the country. We also incorporated the fusion fuel USA with the aim to develop projects and support our activity in South America, Martha <unk> hundred inkjet.
So they were.
A big project of Green hydrogen and green ammonia to date.
Additionally.
We are looking forward to new markets, which is the GCC countries more precisely.
I pulled out of immunized, Oman, and Saudi Arabia, where already huge projects underway.
Development to produce green hydrogen and India, where the government has defined an ambitious national hydro generation to Decarbonize oil refineries and fertilizer production that will lead to the needs of enormous quantities of green hydrogen.
In June.
Thank you for that.
Thank you very much so.
As you can tell a little and all of this has been a very exciting few months, a very busy two months with significant progress.
Science.
As mentioned before ever phase one completed under the commissioning stage.
The discussions with clients.
So.
<unk> continues to accelerate.
In particular with the recent disruptions in the natural gas and energy markets and the renewed commitment to decarbonization around the world.
We've seen more and more people approach us.
Each of us to look into potential projects, it's been extremely exciting.
Partners.
To be and I'd say on the business development team attrition fuel.
Some of them.
Okay, probably close before we go into Q&A with just to note that the multiple green hydrogen is truly getting them launched now.
We're in a prime position to other significant impacts in its creation and we'll.
And if there is an extremely exciting time to be issued in June.
We look forward very much to updating you on our progress with each quarter.
A fantastic ride and I believe it's 2022 will only be more enticing.
So with that I will open up for Q&A.
It is.
We see this all myself from Jefferies on as well.
Ben will moderate the Q&A.
Thanks, Peter Rico. So we do have a handful of questions that came in a few more via email encourage anyone to submit their questions.
If I have anymore.
From the top.
There was a question that came in around expected.
Production capacity for Heber Solar is next year in 2022.
So this will very much depend on the exact timing of the go live of the.
It could have been two funds.
Something that we still continue to discuss COVID-19 providers.
<unk> machinery, that's going in there.
We.
You gave guidance last time.
To look to produce between 2000 to 2500 units.
At a push we would expect to.
There's still be possible to achieve that.
Mississippi, we will likely come in somewhere below that mainly but also partially due to the.
Timing that it takes to get our projects license. So the idea isn't to produce and produce and produce and have it all sitting in warehouses.
We.
Well time these with the with these as the projects get.
License.
We still continue with all between 2000 to 2500 guidance.
Until we until we know otherwise.
Great. Thanks.
Our next question was around.
The phase two of ever at the timeline for for completion.
So we're hoping that towards the end of the year potentially the first couple of weeks of January will be exactly the same position that.
Things are now asking for its commissioning this all depend on just the arrivals.
A round of the membranes.
So as soon as he goes.
We will ask for the pumps commissioning.
Main purpose of the of the both ever concept proof of concepts of the technology on an industrial scale.
And we're already able to get what we need out of the Everest with phase.
At its current stage.
Great question that came in via email in light of the addition of the new head of Australian operations, you could provide an update on ample that that project and when you'll be able to ship that.
The units to Australia.
Okay.
So.
So the project, we then Paul.
I would think.
We have already old technology, Randy we expect to ship technology early December.
Got it.
These projects.
Green hydrogen plant.
Piloting process, it's something that we don't exactly control the timing.
But nevertheless, we will see the technology and <unk>.
Everything stopped construction is still not going to have the green light.
Some of the local authorities.
Thanks, Kara piggyback on that.
With the new additions is the executive team built out now complete or are there additional.
Hires that Youre looking to make let me take that one Ben.
Okay.
All my life.
Great. Thanks.
I would say that firstly, we are looking to.
To add.
A senior leadership to fusion USA.
<unk> is an important potential market for us.
Especially with the recent passage of the infrastructure Bill that will provide.
Funding opportunities for green hydrogen.
But bottom line use.
It's going to be a large market and we need to have a leadership team in place and that's something that we're we're.
We're very focused on more generally.
People are the key to to.
Us being able to to both.
Market.
The us is ourselves globally to be able to to be interfacing with customers.
Installation to be advancing our technology.
While with the addition of a senior leadership team in the U S that probably rounds out.
The needs at senior management, we're still actively adding to our talent.
Especially in the R&D area.
In the area of then progressing.
The R&D developments into industrialization.
And in development and of course, our head of production is building out our team.
That will be overseeing production at the benefit the facility. So you should expect to see us continuing to to add add folks both at the senior management level.
And in the USA and then mid level throughout the organization.
Great. Thank you.
Just a question around off takers for the hydrogen that's being produced at ever or that will be produced.
Okay Thats helpful.
Hospitals.
Opex.
So the phase one as I mentioned.
So projects, where we will produce.
Hydrogen and hydrogen will be start and then will be converted into the next phase.
And we will sell it for that purpose. So the uptake is.
National's weight when it comes to the second to the.
Thanks Stu.
We have two two uptake is the first opex.
The natural gas company never called out distribution.
Which we.
The green hydrogen and it will be blended in the natural gas pipelines of the FCC.
Thank you Ed.
Thank you.
It will come from the phase two projects altogether, we will be we will we will list.
The hybrid Athena high decile bottles and bottles will be supplied to hydrogen refueling stations.
Yes.
And we will be installed.
In the upcoming year.
Great. Thank you same question here around the importance of aluminum too.
Two the cost of Heber solar.
And also what would what would an increase in the price of aluminum from current levels impact the liberalized cost of hydrogen from.
From a hemo solar.
So I'll take that.
So those are certainly components.
Represents the volatility.
5% impact on the level of cost of hydrogen.
So the swings on.
<unk>.
While material.
<unk>.
That significant by the by themselves. However, we have to nodes with.
With full transparency that we have seen an increase of module prices for raw materials across.
Well different components from both the.
Other.
The minimum.
Steel to the membranes and so on so we continue to.
The same guidance of.
Housing.
Cream Hudson liberalized costs.
On the <unk> in 2023 in particular.
Even with.
<unk> market prices. This is excluding compression purification and then five boss for anyone who is keeping track of those things.
This is taking into account the grants.
What strong mentioned before the previous volumes is a tremendous work's done.
These caused by the team of being able to really do a great job.
Sweeping up and being involved in just about all of the relevant grants avail.
Available with US we continue to.
To deliver this be delivering to clients into our own project, our localized cost of hydrogen in the bundle.
And buyers.
As soon as as early as 2023.
Hum.
Here I would just like to jump in again for a second which is we recognize that.
But we may be in an inflationary environment for some time to come replacement may be transitory, but.
To Europe, but maybe not.
So part of the conversations that I was having with prospective clients include discussions about whether there are ways for us to share in the.
Upside and the downside or has the client share in the upside and downside.
Of the.
Cost of significant inputs like aluminum or steel so we're very mindful of the.
The environment the cost environment that we're in now where we are keeping an open mind as to how to be able to meet the needs of our.
But at the same time.
Expose fusion too.
On its own to potential continued increases in the cost of some of these global commodities.
Great. Thanks follow up question there.
Comment on on a request for comment on securing.
Securing production components for deliveries.
In light of of supply chain disruption across the board.
Sure.
Directly to the use of cash.
And the last two quarters in particular.
We've made significant down payments.
To be securing the production lines with several of our calls.
Our supply partners in order to to do the best we can to make sure that we minimize any disruption that we have so we have that.
And here once again I'd like to jump in to say.
Kudos to the team we have been casting a wider net for four suppliers for for key key inputs, we continue to be to be adding to the list.
By suppliers the process of qualifying suppliers.
Got.
Something that happens overnight.
Because quality is obviously paramount to us but in this in this environment.
Of constrained supply chains.
Fourth that we have multiple qualified vendors for all of our key components and Thats something that the team has been working.
One.
And we will continue to be working on as we head into 2022.
Great. Thanks, a question around the current level last cost of hydrogen with with the Evo technology at current market prices for for raw materials.
So we're not getting the gamba.
Away completely as we are in negotiations with clients both on level.
On providing technology, but also on.
<unk>.
Purchase agreements.
Okay.
Given where.
Albeit in.
And the guidance I'll give but just to notice that.
With the numbers we're seeing.
<unk> for both great hydrogen and other sources of Green hydrogen we believe we're in an extremely competitive.
Our solution for hydrogen and not even safer green Hudson for hydrogen.
What's going on in the in the broader markets today I would say this.
Ill leave the guidance.
Today's was high solar irradiation, we continued to gaming and targeting the localized Hudson it under two euros, excluding depression within Covid patient.
Coming out of the system at high cost.
Great. Thanks. This is a question for Joe in discussions with potential customers do you get a sense that.
More extensive performance data.
It is important to.
To certain customers to validate the technology in their eyes.
Yes of course some cleanup.
It doesn't mean a market.
Right.
Our track record.
We have a track record from the.
That <unk> seen.
Yes.
Patty production few months ago, and now more recently.
Puna operations.
In fact, what.
What we are doing right now in these negotiations with this slide is that we are certainly possible.
Sure.
Ed.
<unk> of the technology.
By a sudden move to make CPC contract fully EPC contract.
On pharma and meaning that as the clients will have.
We will make the payment of the full EPC plants whenever he has.
Whenever the plant have ashish.
And the availability that.
It has.
Has been contracted at display Abb's provides a lot of.
Months of track Records analysis and allows us to move forward in these negotiations in addition to that some of the clients negotiations what we've been doing is that we can offer either textiles are who can offer.
Our contract sales and green hydrogen so hydrogen purchase agreement and some of the cases.
Can we negotiate hydrogen for chase agreement with the possibility of build own and transfer. So the client has to put the option to buy the project buyback the project after some months.
There are at least amongst the defined.
We need it.
We found the right the performance of the technology.
Thanks, Joe a question that came in via email or you're looking at the eventual repurposing of natural gas pipelines to transport hydrogen or do you expect.
To be a primarily a distributor.
Energy solution.
Those are the two types.
Two possibilities for selling the green hydrogen.
Either we produce the green hydrogen and we supply directly to the off taker to the industry and we have to have our clients right beside or at least close to this.
Distributed indices.
Sure.
We produced the hydrogen.
Blend the hydrogen in the natural gas and rejected in the pipelines.
We believe that this is the most important markets.
Materially.
The way to commercialize the green hydrogen and of course this will allow us will allow us to inject all.
Our production in the pipeline and our customers in other countries for instance, and you can buy.
The certificate of origin from this hydrogen and monetize them in depth mechanical de carbonization strategy. So we truly believe that the blending and the natural gas will be the future.
Is that a clean.
Clean hydrogen commercialization.
Just.
We are involved.
All types of projects.
Yes.
With apartments.
Upstream pipelines as well as distributed energy solutions, but just to be good we will not.
Jeff from the Repurposing ourselves this is.
All of those stopes and production of Green hydrogen.
Great.
Can you discuss any or touch on any recent progress on the Cuba ammonia, Morocco project over the third quarter.
Be doing sorry from Kentucky updates on people, who have money, Morocco, specifically in the third quarter Opex OXXO.
We truly believe febrile ammonia, Morocco, it's a project that we'll be developing and six basis.
In fact, the phase one and we assume as only green hydrogen production and it will.
It'll be a small fund as I mentioned before 200 people saw our units at between 204 hundred equal solar units and this is too small quantity of hydrogen to invest in the ABA Bosch.
System to productivity in ammonia so it will be.
Jack just to produce green hydrogen which will.
Be supplied to an industry are located in the <unk> region of Suezmax that.
The phase the second phase like 234 and five.
I want to take a bit more time, we can start building the plant.
Cogs line of next year, but in fact in hydrogen.
<unk>.
With supply and Apple Bosch system, which assignments spikes installation will be never less than 12 to 18 months. So in fact, it will start construction space to also give people ammonia, but can only be commissioned by the end of 2023.
And most of.
And this of course would be.
Extensive interactions with the local regions moving towards licensing process and of course, securing demand as Ron mentioned.
Yes.
Great. Thanks stick with you so can you touch on that.
Current state of any.
We use <unk> in some other geographies.
For example, Abu Dhabi or too late.
Yes, and in Abu Dhabi, we are involved in conversations with the with the developers.
There are really neat projects being announced in.
The Abu Dhabi imaging in the United Arab Emirates.
We are in contact with those big players that are developing those projects in Abu.
In Chile, the same things, we just we are in contact with.
Two projects.
Our under development of course in both cases, Abu Dhabi, and Chile, and we will act only us technology sales.
Perfect.
Projects that I mentioned of both projects is so big adapting to a mobile strategy.
We will need to have local assembly line to close the modules and to prepare all our evil solar technology in <unk>.
Besides the plan so we can evolve.
Because you've got the projects.
All of these big projects are being announced at the start of construction and 325. So no. None of these projects will happen tomorrow.
Okay. Thanks, Geoff on it looks as though.
Just check here it looks like we have reached the end of the questions have been that have been submitted.
So in the absence of any additional questions.
I guess.
This concludes our third quarter webcast, if you have additional questions.
Feel free to contact contact us directly.
IR at fusion fuel fusion dashboard that EU or visit us at our website at www dot diffusion dashboard that EU. So thank you for.
Your participation and engagement as always we look forward to our next quarterly update.
Thank you.