Q4 2021 Heliogen Inc Earnings Call

[music].

Good morning and welcome to the Helios Incorporated full year 2021 conference call. As a reminder, today's call

Good morning, and welcome to the Helios incorporate at full year 2021 conference call.

As a reminder, today's call is being recorded.

At this time, all participants are needed to listen only mode. A question and succession will follow the prepared remarks.

At this time all participants are in a listen only mode.

A question and answer session will follow the prepared remarks.

I would now like to turn the call over to Louis Baltimore, Gileo Jones, Vice President of Investor Relations for Open Erie Rocks and Introductions. Please proceed.

I would now like to turn the call over to Louis Baltimore, Neogen, Vice President of Investor Relations for opening remarks and introductions. Please proceed.

Thank you operator, and good morning to everyone. We're glad you could join US today for our full year 2021 conference call.

Leouis Baltimore: Thank you operator and good morning to everyone. We're glad you could join us today for a full year 2021.

Bill: With us on today's call, our Bill Gross, Helio Jones Founder and Chief Executive Officer and Chris D'Obiaya, our Chief Financial Officer.

With us on today's call are Bill gross <unk>, founder and Chief Executive Officer, and Kris <unk>, Our Chief Financial Officer.

Bill: Heliogen issues it results yesterday in a press release that can be found on the Investor section of our website at Heliogen.com.

Given your gen issues its results yesterday in a press release that can be found on the investors section of our website at Helio Gen Dot com.

Bill: As a reminder, our comments on this call include forward looking statements which are subject to various risks and uncertainties.

As a reminder, our comments on this call include forward looking statements, which are subject to various risks and uncertainties. These statements include expectations and assumptions regarding the company's future operations and financial performance, including our guidance for 2022 actual results could differ materially from those contemplated in the forward looking statements any forward looking.

Bill: These statements include expectations and assumptions regarding the company's future operation and financial performance including our guidance for 2022. Actual results could differ materially from those contemplated in the forward looking

Bill: Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future.

That we make on this call are based on assumptions as of today and we undertake no obligation to update these statements as a result of new information or future events.

Bill: Factors that could cause actual results to differ materially can be found in yesterday's press release and other documents filed with the SEC by the company from time to time.

Factors that could cause actual results to differ materially can be found in yesterday's press release and other documents.

With the SEC by the company from time to time. During this call. We may also refer to certain non-GAAP financial measures, including EBITDA and adjusted EBITDA. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results more detailed information about these measures and a reconciliation to the most comparable.

Bill: During this call, we may also refer to certain non- GAAP financial measures, including EBITDA and Adjusted

Bill: These non- GAAP measures should be considered in addition to, but not as a substitute for, or an isolation from Gap Result.

U S. GAAP measures is contained in the press release issued last night, which is available on the investors section of our website and was furnished on form 8-K with the SEC.

Bill: A replay of this call will also be available on the Investors section of our company website this afternoon. And with that, I'm pleased to turn the call over to Bill Gross, our Founder and Chief Executive Officer.

A replay of this call will also be available on the investors section of our company website. This afternoon and with that I'm pleased to turn the call over to Bill gross our founder and Chief Executive Officer.

Thank you Louis and thanks to everyone for joining us this morning.

Bill Gross: I'm incredibly excited to speak with you today on our first earnings call.

I'm incredibly excited to speak with you today on our first earnings call.

If you turn to page four of the earnings presentation, we posted on our website.

Bill Gross: We turn to page 4 of the earnings presentation we posted on our website. I'd like to begin with a review of the nature of Heliogen's business.

I'd like to begin with review of the nature of Hilli jeans business.

Bill Gross: what makes our company unique and why we believe Heliogen's technology can help change the world.

Our company unique and why we believe <unk> technology can help change the world.

Bill Gross: At its core, Ilyagin's mission is to decarbonize heavy industry.

At its core allegiance mission is to Decarbonize heavy industry utilizing a combination of leading edge technologies to replace fossil fuel energy with concentrated sunlight.

Bill Gross: utilizing a combination of leading edge technologies to replace fossil fuel energy with concentrated sunlight.

So each and provides clean solar thermal energy, which can be used to make heat electric power or green hydrogen.

Bill Gross: Heliogen provides clean solar thermal energy which can be used to make heat, electric power, or green hydrogen.

Bill Gross: We call those products helio heat, helio power, and helio

We call those products Helio heat.

The old power and Helio fuel.

Bill Gross: Global demand for carbon-free energy is skyrocketing in light of fossil fuel price increases and the volatility of those prices, as well as the growing commitments by companies and countries around the world to reduce their carbon emissions. Our company addressed that.

Global demand for carbon free energy is skyrocketing in light of fossil fuel price increases and the volatility of those prices as well as the growing commitments by companies and countries around the world to reduce their carbon emissions.

Our company addresses these critical needs.

Cement companies mining companies steel companies oil and gas companies and hundreds of other huge industrial customers are looking to reduce their carbon emissions and eliminate fossil fuel cost volatility from their planning processes.

Bill Gross: the men companies, mining companies, steel companies, oil and gas companies, and hundreds of other huge industrial customers.

Bill Gross: are looking to reduce their carbon emissions and eliminate fossil fuel cost volatility from their planning process.

To address all of these imperatives and Decarbonize heavy industry.

Bill Gross: To address all these imperatives and decarbonize heavy industry, Heliogen has innovated and is now scaling a new generation of concentrated solar thermal energy production that is modular, AI powered and scalable.

Jen has innovated and is now scaling a new generation of concentrated solar thermal energy production that is modular.

AI powered and scalable.

Bill Gross: As a result, our technology can be installed behind the meter on our customers' premises to avoid or lessen their purchase of fossil fuels and enable them to take control of their own energy generation on site.

As a result, our technology can be installed behind the meter and our <unk>.

Customers' premises to avoid or lessen their purchase of fossil fuels and enable them to take control of their own energy generation onsite.

Turning to page six you'll see more about the key insights and inventions that led to Healy agenda breakthrough approach.

Bill Gross: Turning to page 6, you'll see more about the key insights and inventions that led to Heliagents Breakthrough Approach.

The first is that we've coupled advanced graphics processing units with AI based control systems to move thousands of theirs automatically with real time feedback and more precision than ever before.

Bill Gross: The first is that we've coupled advanced graphics processing units with AI-based control systems to move thousands of mirrors automatically with real-time feedback and more precision than ever before. This proprietary

This proprietary closed loop tracking system allows healy agenda optimize sunlight concentration.

Bill Gross: allows Heliagent to optimize sunlight concentration.

Bill Gross: enabling us to efficiency generate thermal energy at temperatures from 150 up to a thousand degrees Celsius.

Enabling us to efficiently generate thermal energy I temperatures from 150 up to 1000 degrees Celsius.

Bill Gross: a far larger range than previously possible with traditional concentrated solar power.

Far larger range than previously possible with traditional concentrated solar power.

This closed loop tracking system is superior to the older Open loop systems that'd be lied only on pre programmed maps of the Sun's movement and we are therefore relatively inefficient.

Bill Gross: This closed-loop tracking system is superior to the older open-loop systems that relied only on pre-programmed maps of the sun's movement and were therefore relatively inefficient.

Bill Gross: We expect that the closed-loop helium systems will be significantly more efficient than their open-loop counterparts.

We expect that the closed loop lead Gen systems will be significantly more efficient than their open loop counterparts.

Closed loop tracking will also enable healy gen to eliminate weeks of heliostat field calibration when a new facility of one or more modules. It started up.

Bill Gross: closed loop tracking will also enable Heliogen to eliminate weeks of Heliostat field calibration when a new facility of one or more modules is started up. Additionally, as the ground shifts and as equipment settles over time, the traditional open loop systems require manually intensive recalibration out in the field every six months or so.

Additionally, as the ground shifts and as equipment settles over time.

Traditional open loop systems require manually intensive recalibration out in the field every six months or so.

Bill Gross: Recalibration can be expensive and results in system down.

Recalibration can be expensive and resulted in system downtime.

Bill Gross: If our closed-loop system is actively monitoring and adjusting the mirror's focus in real-time, there is no separate recalibration process and no associated downturn.

Our closed loop system is actively monitoring and adjusting the mirrors focus in real time, there is no separate recalibration process and no associated downtime.

Plant operators get immediate insight into performance and maintenance needs.

Bill Gross: plant operators get immediate insight into performance and maintenance.

Second this innovative AI base closed loop tracking system allows us to make our heliostat significantly smaller than what's comment on traditional CSP projects.

Bill Gross: Second, this innovative AI-based closed loop tracking

Bill Gross: allows us to make our heli stats significantly smaller than what's common on traditional CSP projects. Hours are the size

Ours are the size of a large TV screen compared to older systems, which use mirrors as large as a tennis court.

Bill Gross: compared to older systems which use mirrors as large at the tennis courts.

Bill Gross: This means our solar field can be manufactured efficiently in a factory at scale, like PV panels, instead of heavy construction out in the field.

This means our solar fields can be manufactured efficiently in a factory at scale like PV panels, instead of heavy construction out in the field.

This enables mass production and rapid learning curve cost reduction that has not previously been applied to concentrated solar.

Bill Gross: This enables mass production and rapid learning curve cost reduction that has not previously been applied to concentrated solar.

With our more efficient software driven driven system utilizing smaller mirrors our.

Bill Gross: with our more efficient software-driven system utilizing smaller mirrors.

Bill Gross: Our modules are designed to take up as little as 3% of the space compared to traditional CSP fields you may have seen while flying in and out of various airports in Southern California and Nevada.

Our modules are designed to take up as little as 3% of the space compared to traditional C. S. P. Fields, you may have seen while flying in and out of various airports in southern California and Nevada.

This provides the potential for reduced cost to our customers as well as supporting much more flexibility in the siting of these projects.

Bill Gross: This provides the potential for reduced cost to our customers, as well as supporting much more flexibility in the siting of these projects.

The third innovation of ours is modularity.

Bill Gross: For example, for our power modules, we use these mass-produced heliostats to build one 5-megawatt electric.

For example for our power modules, we use these mass produce sealy stats to build one five megawatt electric system and then replicate it with each additional module generating another five megawatts.

Bill Gross: and then replicate it with each additional module generating another 5 megawatts.

Bill Gross: Modular design will allow us to standardize components to reduce overall costs while also eliminating single points of failure.

Modular design will allow us to standardize components to reduce overall costs, while also eliminating single points of failure.

Bill Gross: This modularity allows Heliogen to target the huge industrial market and we are not limited to just the commercial scale wholesale utility market.

This modularity allows healy Jan to target the huge industrial market and we are not limited to just the commercial scale wholesale utility market.

We're the first company in concentrated solar that we know of to develop a modular system like this.

Bill Gross: We're the first company in concentrated solar that we know of to develop a modular system like this.

Bill Gross: previous concentrated solar was centralized, we are decentralized. And that is one thing that enables us to better service the industrial market.

Previous concentrated solar with centralized we are decentralized and that is one thing that enables us to better service the industrial market.

Well, there's a tremendous amount of capital intellectual horsepower and competition in the energy transition.

Bill Gross: while there is a tremendous amount of capital, intellectual horsepower, and competition in the energy transition.

Bill Gross: I believe Heliogen is uniquely positioned to be one of the big winners in this race to decarbonize our planet.

I believe Healy adjourn is uniquely positioned to be one of the big winners in this race to Decarbonize our planet.

Bill Gross: To defend against competition, Heliogen has patented several of these innovations and built a strong R&D effort to continue to advance our state-of-the-art technology.

To defend against competition Gilead, yet has patented several of these innovations and built a strong R&D effort to continue to advance our state of the art technology.

Bill Gross: For Heliogen and our investors, we believe these unique competitive advantages will enable us to create a wide moat around our business. For our customers, this technology is a great opportunity.

Four Healy agenda, and our investors. We believe these unique competitive advantages will enable us to create a wide moat around our business for.

For our customers this technology can be a game changer.

Bill Gross: We want to scale this in a very large way. And down the road, we may license this technology to others.

We want to scale. This in a very large way and down the road, we may license this technology to others.

Another huge advantage that <unk> technology will provide beyond cost and modular flexibility is low cost energy storage that is dramatically less expensive than batteries.

Bill Gross: Another huge advantage that Heliogen's technology will provide beyond cost and modular flexibility is low-cost energy storage that is dramatically less expensive than batteries. Because Heliogen

Because he lead Gen can achieve higher temperatures Healy adjourn can shrink the footprint and the cost to store thermal energy and solid media, such as rocks ceramic or sand.

Bill Gross: Heliogen can shrink the footprint and the cost to store thermal energy in solid media, such as rocks, ceramic, or sand.

Bill Gross: enabling near 24-7 operation and solving one of the key problems with most renewable energy, intermittent.

Enabling near 24 seven operation.

Solving one of the key problems with most renewable energy Intermittency.

While most renewables provide power between about 20% and 40% of the time called the capacity factor.

Bill Gross: While most free maneuverables provide power between about 20% and 40% of the time, called the capacity factor, Heliagen plans to build systems for its customers to provide a capacity factor of up to 85% depending on customer preferences.

<unk> plans to build systems for its customers to provide a capacity factor of up to 85% depending on customer preferences.

Bill Gross: Industrial customers typically need that because they continue to run after the sun goes down and on cloudy days, and HiltiGen's technology will be able to uniquely support those needs.

Industrial customers typically need that because they continue to run after the Sun goes down and on cloudy days at Hilton <unk> technology will be able to uniquely support those needs.

What this means is that <unk> technology will provide meaningful flexibility. It is flexible and scale this flexible and application and it is flexible in time of use.

Bill Gross: What this means is that Heliogen's technology will provide meaningful flexibility. It is flexible in scale, it is flexible in application, and it is flexible in time of use.

But this does not occur overnight. Our team has spent eight years improving all aspects of our technology with the goal of achieving the record temperatures from concentrated sunlight that we have described.

Bill Gross: But this did not occur overnight. Our team has spent eight years improving all aspects of our technology with the goal of achieving the record temperatures from concentrated sunlight that we have described.

Bill Gross: from the mirrors, to the sunlight receivers, to the full systems themselves. We are now on the fourth generation of technology innovation, and we will continue to innovate.

From the mirrors to the sunlight receivers to the full systems themselves. We are now on the fourth generation of technology innovation, and we will continue to innovate.

Bill Gross: Please turn to page 7, and I'll talk more about some of the progress and our execution efforts that we've made over the past year or so. And later, I'll turn it over to Christy to talk about our commercial progress.

Please turn to page seven and I'll talk more about some of the progress and our execution efforts that we've made over the past year or so.

And later I will turn it over to Kristy to talk about our commercial progress.

To demonstrate our technological innovation control system and modular plant design, we completed a 400 kilowatt test facility in Lancaster, California at the end of 2019.

Christie: To demonstrate our technological innovation, control system, and modular plant design, we completed a 400-kilowatt test facility in Lancaster, California at the end of 2019.

Christie: Here, we have proven at demonstration scale the tracking system, the storage, and carbon-free steam production.

We have proven that demonstration scale tracking system, the storage and carbon free steam production.

Christie: On the renewable fuel front, we recently held successful trials producing green hydrogen with Bloom Energy at our Lancaster site.

The renewable fuel front.

Recently held successful trials, producing green hydrogen with Bloom energy at our Lancaster site.

Christie: These trials combined Heliogen's proprietary solar thermal technology with Bloom Energy's proprietary solid oxide high-temperature electrolyzer to produce green hydrogen.

These trials combined Hilli agenda proprietary solar thermal technology with Bloom energy is proprietary solid oxide high temperature electrolyzed her to produce green hydrogen.

Christie: By combining these two technologies, we aim to solve the cost problem that the hydrogen economy is struggling with so much today.

By combining these two technologies, we aim to solve the cost problem that the hydrogen economy is struggling with so much today.

Christie: Heliogen and Bloom demonstrated in a trial that together, they can produce hydrogen significantly more efficiently than traditional low-cost PEM and alkaline electrolyzers.

Julian J Blum demonstrated in a trial that together they can produce hydrogen significantly more efficiently than traditional low cost Pam and alkaline electrolyze theirs.

Christie: Substituting heliogen solar heat for some of the electricity used during the hydrogen production process will significantly reduce cost, since our heat is a much more efficient source of energy than electricity.

Substituting Healy adjourn solar heat for somebody electricity used during the hydrogen production process.

Significantly reduced cost since our heat is a much more efficient source of energy and electricity.

Christie: When combined with our thermal storage and renewable energy solution, we expect to be able to further improve the capital efficiency of the electrolyzer by powering the electrolyzer nearly 24-7.

When combined with our thought thermal storage and renewable energy solution, we expect to be able to further improve the capital efficiency of the electrolyze or by powering the electrolyze or nearly 24 seven.

We also continue to devote significant energy to innovation and expansion of our capabilities.

Christie: We also continue to devote significant energy to innovation and expansion of our capabilities.

Christie: In December , we announced the execution of our $39 million award.

In December we announced the execution of our $39 million award from.

Christie: from the Department of Energy to support commercial scale deployment of our technology in combination with a unique power system that has the potential to lower costs, water usage, equipment size, and plant footprint as compared to other alternative types of power generation.

From the department of energy to support commercial scale deployment of our technology in combination with unique power system that has the potential to lower cost water usage equipment size and plant footprint as compared to other alternative types of power generation.

Christie: After rigorous evaluation as part of a very competitive process, the DOE recognized the advantages of Heliogen's technology, and we received the largest award within the DOE Solar Technologies Office Fiscal Year 2020 funding program.

After a rigorous evaluation as part of a very competitive process. The deal we recognize the advantages of helium <unk> technology and we received the largest award within the D O Solar technologies office fiscal year 2020 funding program.

Christie: In February , we announced the award of an exclusive lease agreement with the U.S. Bureau of Land Management for the Brenda Solar Energy Zone in Arizona, where we plan to develop a site that could be sold to a prospective customer for the production of up to 20,000 metric tons of green hydrogen per year.

In February we announced the award of an exclusive lease agreement with the U S Bureau of land management, where the brand is solar energy zone in Arizona, where we plan to develop a site that can be sold to a prospective customer for.

But the production of up to 20000 metric tons of green hydrogen per year.

Christie: This site is an ideal location for commercial green hydrogen production due to its ample water supply and close proximity to key distribution channels.

This site is an ideal location for commercial green hydrogen production due to its ample water supply and close proximity to key distribution channels.

These projects should lead to greater innovation and more opportunities for customers to take advantage of Hilli agenda unique renewable energy solution.

Christie: These projects should lead to greater innovation and more opportunities for customers to take advantage of Heliogen's unique renewable energy.

Christie: As we work to deliver on our mission and create shareholder value, I'll now provide you with an update on our operational project.

As we work to deliver on our mission and create shareholder value I'll now provide you with an update on our operational progress.

Christie: If you turn to page 10, you'll see what we've laid out for you in chronological order.

If you turn to page 10, you'll see what we've laid out for you in chronological order.

Christie: In February , we announced initial site preparation for our heliostat manufacturing facility in Long Beach, California.

In February we announced initial site preparation for our heliostat manufacturing facility in long Beach, California.

Christie: This facility, expected to be operational later this year, will be led by Andy Lambert, Helian Jean's chief production and supply chain officer, who came over to us from SpaceX to lead our manufacturing efforts.

This facility expected to be operational data. This year will be led by Andy Lambert helium Killeen Jones, Chief production and supply chain officer, who came over to us from Spacex to lead our manufacturing effort.

With state of the artist Assembly lines. We believe this facility will give us the ability to ramp production rapidly and efficiently, while reducing our production costs.

Christie: With state-of-the-art assembly lines, we believe this facility will give us the ability to ramp production rapidly and efficiently while reducing our production costs.

Christie: It will also have a robust test facility and rapid deployment center for us to continue innovating and finding ways to squeeze out costs, while increasing performance of our.

It will also have a robust test facility and rapid deployment center for us to continue innovating and finding ways to squeeze out costs, while increasing performance of our systems.

Christie: In addition to manufacturing efficiencies, we will also continue to optimize efficiencies for the operation of the facilities we are deploying for customers.

In addition to manufacturing efficiencies, we will also continue to optimize efficiencies, but the operation of the facilities, we are deploying for customers.

Christie: As we announced in December , we have successfully demonstrated our installation and cleaning autonomous robot and utility solution, or Icarus as we call it, which will now allow Heliagen to do several things.

As we announced in December we have successfully demonstrated our installation and cleaning autonomous robot and utility solution or interests as we call. It.

Which will now allow healy agenda to do several things.

Christie: First, ICAR-S's cleaning function will maintain optimal reflectivity of our mirrors, enabling consistent maximization of generated heat and the highest possible efficiency of our system.

First it caresses cleaning function well maintained optical optimal reflectivity of our mirrors, enabling consistent maximization of generated heat and the highest possible efficiency of our systems.

Christie: Second, Icarus positions Heliogen to be able to improve labor efficiency on our larger projects, longer term, by

Second it can risk positions healy agenda to be able to improve labor efficiency and our larger projects longer term by.

Christie: eliminating some of the ongoing repetitive tasks required by humans.

Eliminating some of the ongoing repetitive tasks required by humans.

Christie: We expect to deploy the autonomous cleaning function of Icarus with one of our first full-scale facilities.

We expect to deploy the autonomous cleaning function of vigorous with one of our first full scale facilities.

Speaker Change: During the rest of 2022, we aim to achieve a series of key commercial and execution milestones as summarized on page 10. Now I'd like to turn it over to Christie.

During the rest of 2022, we aim to achieve a series of key commercial execution milestones are summarized on page 10.

Now I'd like to turn it over to Kristy <unk> our CFO .

Christia: Thank you, Bill. And thanks to everyone for joining us. As Bill just laid out, 2021 was an important year for Heliogen, and one in which our business progressed on several fronts.

Thank you Bill and thanks to everyone for joining us as Bill just laid out 2021 was an important year for his neogen and one in which our business progressed on several fronts.

Christia: This was due in the largest part to the hard work of all our employees who have been laser-focused on driving our business forward. I'll start by talking about

This was due in the largest part to the hard work of all our employees, who have been laser focused on driving our business forward.

I'll start by talking about our commercial progress.

Heavy industry is recognized as being a major contributor to carbon emissions.

Christia: Heavy industry is recognized as being a major contributor to carbon emissions.

Christia: Right now, our technology is already recognized as a potential game changer by many of the world's largest heavy industrial operators, ranging from energy to mining to steel. And we have commercial relationships in various stages with several of these companies, including Woodside Energy, Rio Tinto, and ArcelorMittal.

Right now our technology is already recognized as a potential game changer by many of the worlds largest heavy industrial operators ranging from energy to mining to steel.

And we have commercial relationships in various stages with several of these companies, including Woodside energy Rio Tinto and Arcelor Mittal.

Arcelor Mittal, one of the largest global steel companies is a strategic investor in Healy adjourn.

Christia: ArcelorMittal, one of the largest global steel companies, is a strategic investor in Heliogen, recognizing the value our systems could have for their own operations and beyond, as they have announced a goal of decreasing their carbon emissions by 30% in 2030 as compared with 2018.

Recognizing the value of our systems could have for their own operations and beyond as they have announced a goal of decreasing their carbon emissions by 30% and 2030 as compared with 2018.

Christia: As we announced last year, Rio Tinto, the global mining and metals company, has selected Heliogen to deploy one of our modules at their mine in Boron, California.

As we announced last year Rio Tinto, the global mining and metals company has selected Healy again to deploy one of our modules at their mine and boron, California.

We've been working together to finalize the design and construction of the full contract for that facility. We've also discussed the potential for that to be the first of many commercial scale modules with them.

Christia: We've been working together to finalize the design and to structure the full contract for that facility. We've also discussed the potential for that to be the first of many commercial scale modules of them as they've set targets to reduce their carbon intensity by 30% in their absolute emissions by 15% during this decade.

They have set targets to reduce their carbon intensity by 30% and their absolute emissions by 15% during this decade.

Christia: Woodside Energy, currently the largest gas provider in Australia, is one of our strongest partners and we now have multiple commercial arrangements with them.

Woodside energy currently the largest gas provider in Australia is one of our strongest partners and we now have multiple commercial arrangements with them.

Christia: Last year, we began the early engineering and procurement work on a commercial scale module for Woodside in California, while we completed negotiations on the full contract.

Last year, we began the early engineering and procurement work on a commercial scale module for wind site in California, while we completed negotiations on the full contract.

Christia: We were pleased to jointly announce yesterday with Woodside Energy that we have now signed the full contract for that facility.

We were pleased to jointly announced yesterday it was Wednesday of energy that we have now signed the full contract for that facility.

Christia: Permitting is underway, we are performing detailed engineering work, and we are engaging supply chain partners.

Permitting is underway.

Reforming detailed engineering work and we are engaging supply chain partners.

Christia: We expect to begin construction once permitting is complete.

We expect to beginning construction once permitting is complete.

Christia: This contract marks a major step forward in our commercialization plan.

This contract marks a major step forward in our commercialization plans.

Christia: As part of that project, we have agreed with Woodside that will include the scope and funding from the U.S. Department of Energy award that we finalized last year.

As part of that project, we've agreed with Woodside that will include the scope and funding from the U S Department of Energy Award that we finalized last year.

Christia: What that means is that in addition to demonstrating Heliogen's 5-megawatt power module, this project will provide the opportunity to deploy and test a new approach to converting solar thermal energy into power that has the potential to be more efficient than traditional approaches.

What that means is that in addition to demonstrating heavy agenda five megawatt power module. This project will provide the opportunity to deploy and test a new approach to converting solar thermal energy into power. It has a potential to be more efficient than traditional approaches.

Christia: Therefore, Hiviogen and Woodside both get positive synergies from combining the DOE award with our first Woodside project.

Therefore, he neogen in Woodside, both get positive synergies from combining the D. O E Award with our first what type of project.

Christia: In addition to signing the commercial scale project contract, Heliogen and Woodside also signed a collaboration agreement to jointly market and identify opportunities for deploying Heliogen's technology in Australia.

In addition to signing the commercial scale project contract. He Neogen in Woodside also signed a collaboration agreement to jointly market and identify opportunities for deploying <unk> technology in Australia.

Christia: The scope of our collaboration will include heat, power, and hydrogen opportunities, with prospective customers with operations in Australia, as well as within Woodside's own Australia portfolio.

The scope of our collaboration will include heat power and hydrogen opportunities with prospective customers with operations in Australia as well as within Woodside, One Australia portfolio.

Christia: Woodside has announced plans to invest $5 billion by 2030 towards decarbonized

Woodside has announced plans to invest $5 billion by 2030.

Towards Decarbonizing its portfolio.

Christia: And this year, after its merger with BHP Billetons Energy Portfolio, Woodside is set to become Australia's largest public energy company. We recognize they have unique familiarity with and access to industrial owner operators that could really benefit from Heliagin's technology. So we are enthusiastic about this partnership to help Woodside achieve its energy transition targets and to expand our business to one of the largest global markets for our technology.

And this year after its merger with BHP Billiton energy portfolio Woodside is set to become Australia's largest public energy company we.

We recognize they have unique familiarity with and access to industrial owner operators that could really benefit from he neogen technology. So we're enthusiastic about this partnership to help win side achieve its energy transition targets and to expand our business to one of the largest global markets for our technology.

We are also pleased to share that along with these agreements our strategic alliance with Woodside includes their equity participation.

Christia: We are also pleased to share that along with these agreements, our strategic alliance with Woodside includes their equity participation.

Christia: We continue to make progress on additional new customer opportunities.

We continued to make progress on additional new customer opportunities.

Christia: As we look to the future, we expect our efforts to be enhanced by supportive decarbonization imperatives by national and local governments, as well as by private industry and the associated required investment.

As we look to the future we expect our efforts to be enhanced by supportive de carbonization imperatives by national and local governments as well as by private industry and the associated require investment.

Christia: For those who may be just learning about Helio Gen's story, let me explain our commercial approach to the market.

For those who may be just learning about healing adjourn story, let me explain our commercial approach to the market.

Christia: We expect our initial projects to be based on building complete turnkey projects, where we deploy Heliogen's technology and equipment ourselves.

We expect our initial projects to be based on building complete turnkey projects, where redeploy he neogen technology and equipment ourselves.

Christia: The Woodside project contract that we just signed is a good example of this model.

The Woodside project contracts that we just signed is a good example of this model.

Christia: In the medium term, once we have Engineering, Procurement, and Construction, or EPC, partners with an established track record of helping us deploy our technology, we expect to transition towards acting as a supplier of Heliogen's technology and equipment rather than being responsible for the installation.

In the medium term once we have engineering procurement and construction or EPC partners with an established track record of helping us deploy our technology, we expect to transition towards acting as a supplier if he rejoins technology and equipment rather than being responsible for the installation.

Christia: In the long term, we also expect to use more of a licensing-type model in which we license our patent-protected technology to owner-operators and EPC companies.

In the long term, we also expect to use more of a licensing type model in which we license our patent protected technology to owner operators and EPC companies.

Christia: We expected this licensing model will result in faster scalability and stronger profit margin but on lower revenue per module.

We expect that this licensing model will result in faster scalability and stronger profit margin, but on lower revenue per module.

Christia: That long-term model is not built into our financial forecast and therefore represents a potential source of profitability upside.

That long term model is not built into our financial forecast and therefore represent a potential source of profitability upside.

Christia: Now let me provide an overview of the steps of our typical sales process for our initial business model of building turnkey projects.

Now, let me provide an overview of the steps of our typical sales process for our initial business model of building turnkey projects.

Christia: Let's say, for example, we have a customer interested in using heliodense technology for a heat project.

Let's say for example, we have a customer interested in using <unk> technology for heat project.

Christia: When we begin discussions, we'll often enter into a term sheet or memorandum of understanding. And then we begin negotiations on the full facility, which will typically be multiple modules.

When we begin discussions will often enter into a term sheet or memorandum of understanding and then we begin negotiations on the full facility, which will typically be multiple modules.

Christia: During that time, we will sometimes earn revenue on engineering services, similar to the revenue that we earned in 2021.

During that time, we will sometimes earn revenue on engineering services similar to the revenue that we earned in 2021.

Christia: Then, as the customer goes through their final investment decision on a project, we execute the full project contract to build a facility.

Then as the customer goes through their final investment decision on a project, we execute the full project contract to build the facility.

Christia: Typically, it's a multiple month process to negotiate a commercial scale contract and we're going through all the appropriate stages of that with our early prospective customers now.

Typically it's a multiple month process to negotiate a commercial scale contract and we're going through all the appropriate stages of that with our early perspective customers now.

Christia: Once we have the full contract in place, we begin to recognize revenue during the engineering, procurement, and construction project build-out phase.

Once we have the full contract in place we begin to recognize revenue during the engineering procurement and construction project build out phase.

Christia: After completion of the project, we expect to provide ongoing operations and maintenance services, which will be earned and billed under a separate agreement.

After completion of the project, we expect to provide ongoing operations and maintenance services, which will be earned and build under a separate agreement.

Christia: Hopefully that gives you a sense of how we expect our financial outlook to unfold as we contract our early powers.

Hopefully that gives you a sense of how we expect our financial outlook to unfold as we contract our early towers.

Now if you turn to page eight in the presentation I'll walk through the key financial highlights for 2021 as well as some guidance for 2022.

Christia: Now, if you turn to page 8 in the presentation, I'll walk through the key financial highlights for 2021, as well as some guidance for 2022.

For 2021, we are pleased to share that he neogen reported $8 $8 million in revenue exceeding our prior projections by 10%.

Christia: For 2021, we are pleased to share that Helio Jen reported $8.8 million in revenue exceeding our prior projections by 10%.

This revenue consisted primarily of engineering study work for one of our first commercial scale facilities.

Christia: This revenue consisted primarily of engineering study work for one of our first commercial scale facilities.

Christia: We ended 2021 with total liquidity of approximately $222 million following our business combination with Athena technologies.

We ended 2021 with total liquidity of approximately $222 million following our business combination with Athena technologies.

Christia: That liquidity includes investments from world-class financial and strategic investors, including Morgan Stanley Investment Management and Arsler-Mertal.

Liquidity includes investments from World class financial and strategic investors, including Morgan Stanley investment management, and our sand Mittal.

The $222 million consist of cash and cash equivalents of $190 million and investments available for sale of $32 million.

Christia: The $222 million consists of cash and cash equivalents of $199 million and investments available for sale of $32 million.

Christia: These available for scale investments consist of short-duration, high-credit-quality corporate bonds with maturities between 91 and 365 days at purchase.

These available for scale investments consist of short duration high credit quality corporate bonds with maturities between 91 and 365 days at purchase.

Turning to our 2022 guidance, we are guiding to a range of two to three he neogen module is contracted.

Christia: Turning to our 2022 guidance, we are guiding to a range of two to three HelioGen modules contracted. And we are initiating revenue guidance of $20 to $25 million for this year.

And we are initiating revenue guidance of $20 million to $25 million for this year.

We are still in the early stages of our projects. So there are a number of uncertainties that could result in us falling short of or exceeding these expectations as we've outlined on page 11.

Christia: We are still in the early stages of our projects, so there are a number of uncertainties that could result in us falling short of or exceeding these expectations as we've outlined on page 11.

Christia: More importantly, we believe that our guidance around the number of models contracted is currently the most useful indicator of the demand for Hewley Agents products and technology.

More importantly, we believe that our guidance around the number of models contracted is currently the most useful indicator of the demand for heavier Jens products and technology.

Overtime, we expect these contracted numbers to be converted to revenue under the business models that I described a few moments ago.

Christia: Over time, we expect these contracted numbers to be converted to revenue under the business models that I described a few moments ago.

Christia: As more industrial operators make initial purchases of our technology, we expect demand to grow as a result of the demonstrated benefit.

As more industrial operators make initial purchases of our technology, we expect demand to grow as a result of the demonstrated benefits.

Christia: Our goal is for that to lead to replacing more and more of our customers' existing energy supply with hibio heat, hibio power, and hibio fuel.

Our goal is for that to lead to replacing more and more of our customers' existing energy supply with his new heat TVO power and helio fuel.

Christia: Before we close, I'd like to address the impacts of commodity price-driven inflation, a tight supply chain, and how we are working to mitigate these impacts on our business.

Before we close I'd like to address the impacts of commodity price driven inflation.

A tight supply chain and how we are working to mitigate these impacts on our business.

Christia: Like any company involved in energy capital projects, our business is not immune to raw material cost inflation. We're working closely with our customers and partners to mitigate these impacts as much as possible.

Like any company involved in energy capital projects, our business is not immune to raw material cost inflation.

We're working closely with our customers and partners to mitigate these impacts as much as possible.

Christia: As our cost of increase for certain materials, we've gone to our engineering team and supply chain partners and challenged them to re-examine our system designs with the goal of reducing usage of the impacted materials.

As our cost of increase for certain materials, we've gone to our engineering team and supply chain partners and challenge them to reexamine our system designs with the goal of reducing usage of the impacted materials.

Christia: We are pleased with the focus they've brought to this challenge so far and we look forward to sharing more on this effort with you in the future.

We are pleased with the focus they've brought to this challenge so far and we look forward to sharing more on this effort with you in the future.

Christia: And while commodity price increases are a major driver of overall cost inflation and are largely unavoidable, our use of automation for manufacturing, and in the future for installation and maintenance, will help insulate us, as well as our customers, longer term, from future labor cost inflation relative to alternative energy technology.

And while commodity price increases are a major driver of overall cost inflation and are largely unavoidable.

Our use of automation for manufacturing and in the future for installation and maintenance will help insulate us as well as our customers longer term from future labor cost inflation relative to alternative energy technologies.

At the same time, we recognize there are industrial operators, who are much more directly impacted by fossil fuel price increases.

Christia: At the same time, we recognize there are industrial operators who are much more directly impacted by fossil fuel price increases.

We hope that through deployment of our technology, we will be able to help alleviate the burden of rising fossil fuel prices. So that our customers can lock in a more certain financial future powered by clean energy.

Christia: While energy generated from burning fossil fuels is exposed to input cost fluctuation over our project's entire life cycle, our products will largely eliminate the impact of future fossil fuel price movements over the life of the project.

Well energy generated from burning fossil fuels is exposed to input cost fluctuation over our projects entire lifecycle.

Our progress will largely eliminate the impact of future fossil fuel price movements over the life of the project.

Christia: Our customer pipeline today is mostly mining companies and fossil fuel companies.

Our customer pipeline today is mostly mining companies in fossil fuel companies.

Christia: These companies are naturally long, many of the commodities driving up prices around the world. So they're seeing increased revenues in cash flow as a result.

These companies are naturally long many of the commodities driving up prices around the world. So theyre seeing increased revenues and cash flow as a result.

Since our goal is to provide clean solar energy at a price equivalent to what they pay for fossil fuel energy those increasing input costs are making our products more competitive.

As our customers compare the costs and benefits of our technology not only to their legacy energy systems, but also to other sources of alternative energy I want to point out that we're seeing the prices of precious metals and rare earth elements increased significantly more than the commodities that we rely on the most in terms of raw materials.

So as a result, although all clean energy technologies will be needed to solve climate change, we believe helio Jens technology will be an attractive alternative to some other clean energy technologies, such as lithium ion battery storage.

And with that I'd now like to turn it back to bill for closing remarks.

Thank you Christy before we open it up to Q&A, Please turn to page nine.

I'd like to conclude today's call by saying, how thrilled I am to lead Hilli agenda, as we work to help industrial companies Decarbonize.

By eliminating fossil fuels for energy intensive processes and.

And we expect to help these same companies save money by reducing their fuel cost and the reliance on fossil fuels that are notoriously subject to major supply shocks such as we are witnessing right now.

Julia agenda is offering a differentiated product to the large and growing industrial markets by leveraging its proprietary technology.

This technology is underpinned by cutting edge software that generates efficiencies never seen before in solar energy production.

We expect our extensive patent portfolio trade secrets, and learnings to help us maintain and defend these competitive advantages.

The potential of this software extends beyond the field too as we plan to apply AI technology across the entire value chain to reduce costs.

On top of all of this we have put together one of the best teams I've ever worked with.

One that is well suited to this high growth innovation stage of our company's lifecycle.

As we continue to grow the organization and make progress on our goals.

I am honored to say that Hillier Gen was named earlier this month the fast company's annual list of the world's 50, most innovative companies of 2022.

The award recognizes businesses that are making the biggest impact on their industries and culture as a whole.

These sorts of accolades help us attract and retain the highest quality mission focused people in the market.

Energy is the biggest industry on Earth and plays a critical role in nearly all of our comfort safety and GDP.

What's going on in the World today, only further highlights the need for new and particularly renewable sources of energy.

The Sun provides 10000 times more than all of humanity's needs.

And it's been a dream all my life to harness it cost effectively and profitably for our energy.

The demand is large the timing is right.

We're in the right place at the right time.

Thank you so much for your attention and we look forward to answering your questions.

Look forward to sharing our progress with you on future earnings calls.

With that we will now open up the line for Q&A. Thank you very much.

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Our first question comes from Rob Wertheimer with Melius Research. Please proceed.

Hi, good morning, everybody. Thanks for the Great summary.

The business My question I was going to be kind of on your prospect funnel and how that turns into contracts from Christie you touched on this one.

A little bit, but I know you've had.

Comparable interest I assume that interest has maybe gone up with some of the energy prices in Europe , and some of the issues with energy scarcity.

What is the sort of gating factors and the steps that convert somebody who was interested in your technology into a contract are you do you need to have a factory option do you have a demo for scale up I mean can you just sort of talk through those steps and your prospect funnel. If you want thank you.

Yeah, Rob Thanks for the question Great question and good to talk to you. This morning, thanks for joining us.

Yeah, you're absolutely right in light of all that's going on both geopolitically and in terms of fossil fuels. We are seeing if anything at this time increased demand for what we're providing to the market.

We see that on the fossil fuel price side, if the past few months have shown us anything it's that between the geopolitical risk and the fossil fuel price volatility, there's going to be a greater need for energy technologies like ours that can provide that greater stability and protect the likes of our perspective customers from fuel cost volatility over the life of their.

<unk> as well as to mitigate against the potential physical scarcity of fossil fuels that we've seen emerge in the recent weeks.

So in terms of our near term prospects, we're actually seeing a lot of demand in particular for our heat offering and so one of the things that we've been doing is engaging with our prospective customers and continuing to progress those discussions and negotiations on a number of opportunities.

We were thrilled to announce the formal contract signing of our first commercial scale project with Woodside energy. So that's a huge milestone for us and we have a number of others in the works that we look forward to sharing more about soon and then in terms of the timing and process of that it really is a multiple month process typically it varies.

Someone you asked Rob about the kind of the gating factors and you know I can I can say just by way of background prior to coming to heal Neogen I spent 11 years at one of the largest global engineering procurement and construction firms and most recently as the CFO of their energy division, but I have experience across the broad.

Ranges of what services they provide to industry is similar to what the ones that we're targeting and I can say that it really does vary a bit by industry in terms of what the norms are for deciding.

Fighting to go forward with the contract and so oftentimes we will start with an engineering services contracts like what you saw in our revenues from last year.

And other times, we won't have that as a gating function to move forward on a project. So that's kind of the long way of saying essentially we've seen our prospects if anything increase in terms of the level of interest in the market and we're looking forward to progressing.

Additional closed contracts beyond what we announced yesterday with Woodside energy.

Okay perfect. Thank you and then just for a minor clarification heat product that you mentioned Christy is that is that sort of industrial use I know, there's a lot that can be done with that for industrial use of Europe is not gas suppliers are a little bit tighter I don't know if you can be any more specific or just explain what sort of demand that myself and I'll stop there. Thank you.

Yeah. Thanks, Thanks for the follow up certainly that's that's a major.

Our major market in Europe , the ones that we're focused on in terms of looking at regionally, where we're seeing a lot of opportunity are especially and the country of Australia, Australia has some of the largest industrial owner operators and users of energy as well as emitters of carbon.

Carbon emissions and so with with the heat opportunity that we see especially given our partnership with Woodside energy, who has unique access to that market. That's one area, where we're seeing especially a lot of demand for heat products.

Perfect. Thanks.

Once again, ladies and gentlemen to ask a question. Please press star one on your telephone keypad.

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We do have a follow up question from Rob Wertheimer with Melius Research. Please proceed.

Oh, Hi, I'm, sorry, so I just wanted to ask one more if I wasn't picking up too much time.

One of the sort of asking a similar question and Bill you kind of walk through sort of some of the progress you've made on manufacturing et cetera.

When we think about moving from contractor.

Fully operating modules.

I assume you're building the units and the factor I assume you don't have like one off production for the first one is can you just sort of talk about what needs to be done in order to get those contracts and the operation is there any technical challenges that need to be solved.

Bill can you sort of just talk about the steps to go from the contract with final. Thanks.

Yeah.

Thank you Rob.

<unk>.

Projects have two main parts.

There's the solar field, where we collect the energy, which acts as the huge magnifying glass to collect all the solar energy and concentrated.

And then the tower and receiver.

The tower receiver get erected at the field, but our novel technology allows us to build the majority of the field in the factory.

Factory that we just commissioned and are the process of scaling up right now in long Beach, California, we will be producing all of the Healy stats for the first project and that will be ramped up in the second half of this year.

And that factory will then be able to make heliostat for future projects as well.

It's a 90000 square foot factory that has huge throughput capabilities.

And the critical thing about our technology I think as you know is that we because of our heliostat are small enough to fit into shipping a tighter we can produce them on an assembly line and take away all of that.

Manual labor of building them and welding and construction of those in the field because that's the part of the project that takes up many many acres and.

Scaling that up is the novel part of our system.

Perfect.

The technical challenges that I mean, I know you.

You have the demo facility I know you've run simulations back and forth is there anything else that you are still working on design wise or is it more execution and factory production.

I'm pretty good margins.

Right now for the first project with scaling production to produce the Healy stats in the quantity that we need.

And we are very very excited to demonstrate that first project at full scale at full commercial scale soon as possible.

Perfect. Thank you and if I can I'll just ask one last one for Christine and then I'll hop off but.

You seem to have obviously.

Cash flow ample funding for 2022, and I know the business is good could scale up in different ways, it's called a prospect to come in and convert a little bit curious about the deal.

Are you finding you're receiving do you have a lot of opportunity and.

You know people, who want a contest projects et cetera, or how should we think about sort of funding the business as you move through this year into next and I'll stop there. Thanks.

Yeah, Great Great question Rob.

In terms of our near term goals like you indicated we are well funded and that includes.

Being able to hit our near term milestones, including laying our first tower, putting us close to the end of 2023 in terms of our need for funding and so we're in a really good position being able to support our near term goals.

In terms of what other sources of funding, we're looking at department of energy and other local and federal incentives and those sorts of things are absolutely on the horizon not only for us but for our customers in terms of helping to provide additional support for our projects moving forward and so that's another source of funds that we're absolutely focused on.

And then in terms of when we might be out for another fund rates, but I think that's kind of inherent in your question as well.

We're very fortunate to be well funded and so we're really looking at that more opportunistically from a position of strength rather than having that be kind of an urgent need that's driving us and so we feel really good about the guidance that we've issued in terms of targeting three projects completed in 2023, and our guidance for two years to three modules contracted this year apps.

Totally give us it gives us a strong path to achieve that.

And so yes, I would say that we feel really good about where we are we have a lot of exciting news that is giving us some great momentum and we absolutely will look forward to getting our fair share as much as possible of the deal we incentives and other funding.

Perfect Alright, thanks, everybody.

At this time I would like to turn the call back over to Mr. Bill gross for closing comments.

Well. Thank you very much everyone. We're really really excited about our progress we can't wait to keep you updated on future things. Thank you for your attention and for your belief in us and we look forward to talk to you more soon.

This concludes today's teleconference. You may disconnect your lines at this time and thank you for your participation and have a great day.