Q4 2022 Fusion Fuel Green PLC Earnings Call
Hello, everyone and welcome to build brands fourth quarter 2022 Investor update.
My name is Ben horns, and I'm head of Investor Relations.
I would like to first remind everyone that this call may contain forward looking statements, including but not limited to the company's expectation.
<unk> financial performance based on numerous assumptions around Bill Maher just competitive factors industry performance.
The fact is it's kind of been predicted.
Forward looking statements are inherently subject to risks uncertainties and.
They are not guarantees of performance I encourage you to read the disclaimer slide in the inverse.
The presentation for a discussion of the risks that may affect our business, where my calls or something.
Correct. The company is under no obligation and expressly disclaims any obligation to update alter or otherwise revise.
Whether as a result of new information future events or otherwise, except as required by law.
Thanks again.
Joining us today I'll just quickly run through the agenda for the next hour.
I'll kick things off with an overview of our value proposition.
Jim will share fourth quarter highlights.
Actual results a technology update and our latest on our commercial strategy, we're wrapping up with a discussion of our milestones for 2023.
And open up the floor for a half hour facilitate Q&A.
And as in our previous quarterly calls.
Questions can be entered in the chat box and webcast platform at any point during the next hour.
Also submit your questions to the Investor Relations mailbox.
I R at Dash.
Dash fuel got you.
So with that let's proceed to the following slide.
So I'll begin with an overview of how we accusing fuel are creating value in the nice green type and market.
To accelerate the global energy.
Energy transition at the heart of our value proposition is our patented many drives like the library the Hugo.
Our simplified scalable technology Democratizes access to green hydrogen and gives us a material advantage in the markets in which we collect.
And that's why when a number of ways by unlocking the advantages of mass production by positioning us to create fit for purpose solutions and by enabling co located and integrated deployment about incinerators.
We'll talk further about some of the innovations that are within the email itself, but what it comes down to is that we're able to deliver highly competitive global lifestyle or small to mid scale green hydrogen projects.
This is the segment that is often overlooked but aligns with where much of the commercial demand is today, particularly for the vertical that prescribe the highest value.
I also want to drive home the reality that.
Despite progress distribution infrastructure for hydrogen remains a key downstream bottleneck.
And then available solutions for moving from sort of the large scale production to demand centers.
Oh meaningful cost and complexity, we'd estimate north of $2 per kilogram for the cost of blast last mile distribution and logistics. So we believe that co located scalable production is and will remain an extra.
And extremely attractive offer.
Future, so with that I'll pass over Frederica Chavez co head of diesel fuel.
For an update on the fourth quarter and stuff like that.
Great. Thanks very much.
Thank you everyone.
Joining us today.
Just wanted to follow with highlights of the first quarter the fourth quarter.
Possible.
As of today.
First in the fourth quarter, we announced.
7 million euros.
The best.
Contracted.
We also announced our first project in the U S. Initially.
In addition, we were awarded a 36 million Euro Brown Basel three five agenda.
As we completed the 9 million sale leaseback of our benefit.
So let's see.
In the first quarter.
Alicia we find.
Bus Green hydrogen offtake contract with Autodesk.
We also signed on 10 million Euro wrong people.
<unk>.
In Portugal.
And from our joint venture partners.
<unk>.
We have exciting news recently that we were selected.
In Europe sales.
Right.
And we were awarded a $3 4 million.
Grom.
All projections.
Projects in Spain, as well under that program.
Lastly, as part of our efforts to develop strategic partnerships.
We signed to expand as well an Mou with ABB.
This is truly.
It's pricing strategic move.
We hope to be able to disclose more details to you all about this obviously in the future and initiatives.
Now onto the financials.
In the fourth quarter, we recorded an operating loss of 13 million. This is an increase of 5 million euros.
The first quarter is driven by significant noncash items.
Our cost of goods sold consists of two main items.
Absolutely related impairments of $2 5 million.
Relating to Covid awesome.
But all these projects.
Yes.
As disclosed in our September financials.
Together with absolute Washington pursue innovation awards, partially offset this conference call.
We are also taking an inventory.
$2 9 million euros.
This has been the case for us as well as others in the industry. The speed of technology evolution means that we have items with the <unk>.
The discount rate and in some cases.
To be suited for the for all maintenance.
Sure.
Both of these are noncash expenses.
During the fourth quarter, our operating expenses increased by $2 3 million euros, driven by significant non recurring items listed in footnote three and then I will address shortly.
Before I do so I just want to highlight the operating cost for the full year for 2022, we have provided guidance of operating costs of around 40 million euros.
But given the significant one offs the total operating cost.
Around 18 million euros.
4 million euros difference is mainly driven by the confidence by Dr. Indisputable figures.
First thing we reserve.
So the production capacity with our production.
Which given projects delayed delayed.
Did not use mainly to avoid.
Spending more money on.
Raw material costs.
But this has led to a $1 5 million euro tranche.
The production agreement for 2023 has been also to avoid this potential charges in the future.
In Q4, we also started amortizing opdivo Gen one development cost.
And those sides of this.
That's a useful life of three years.
Yes.
In addition.
We had 700000 euros of R&D.
R&D costs related to our demonstration bump in Q4 and this totaled around one.
In euros.
For the full year at the same cost.
During Q4, we saw some professional fees of 700000 euros again, one offs, mainly driven by the sale leaseback transaction costs, some strategic partner engagements.
And also the legal fees.
These are all significant one off items.
We were not able to placebo plus devices at all.
At the end of the presentation, we will provide guidance for 2023.
To note.
When hopefully double the size will develop and publish.
In Q1.
We have already started invoicing volumes for technologies.
During the fourth quarter, we strengthened our cash resources through the following activities.
Principally our sale leaseback assets.
We were able to score.
Close to seven 5 million euros.
Which we received net of the security deposits and some of the considerations for the subsequent filing in euros.
9 million Euro sale leasebacks.
Okay.
We also from albeit from BNP, we saw inflows of $3 8 million euros.
Mostly on reimbursement claims that we made for the Portuguese authorities.
We have sufficient additional days in the first quarter.
<unk> portion of the $3 7 million euros receivable balance as of yearend.
In addition, we received 3 million euros.
Repayment of a portion of the five gram for waters.
The very fast turnaround time of this payment we were awarded the granted.
We actually received the reimbursement cash in December reemphasize, this cultural commitment to the hygiene business into <unk>.
Operational wise it as quickly as possible.
Okay.
Okay.
During the fourth quarter, we raised $1 5 million euros through the ATM yourself and above the $2 3 million, sorry, $8 $5 million.
And the other two.
$2 billion.
Was raised prior to mid February .
Yes.
Yeah.
Yes.
We continue to see increased efficiencies in the growing process in Portugal.
<unk> made the 14th Prime Minister.
Substance of all 10 million euros people being drawn to the wall.
And our team is already working on submitting the prepayments applications for those projects similar to the <unk>.
Yeah.
In addition, we expect to be able to operationalize additional draw downs under our <unk>.
So it's been pretty well.
Progressive.
Gross brings substantial volumes vault projects.
Early stage of this amongst the other station just imagine green hydrogen markets. It may 25.
We will continue to secure growth of hospital.
To add to the nearly 65, many ground already award as well.
I'll answer I want to now take a moment to truly drive.
What makes our technology some special as we are unique in the market.
Our technology centers around the Hebron.
You can see pictured on slide it into the hands of both the Heber solar that you booked.
It has a unique membrane electrochemical cell design that allows for reduced power system cost.
And just the moist degeneration.
And and issues as all my friends operate independently and not in the traditional stack.
It allows for a modular approach using as many as Raj mentioned, Liza, which reduces O&M costs and complexity as well as system downtime as module.
Replacement digitally.
We can use inexpensive structural materials and simplified engineering assembly, which reduces cost.
All of this enables us to create an industry leading cost of green hydrogen what's been previously.
Previously.
An advantage that is felt that is amplified in.
In small to mid scale projects.
So no we haven't.
Two core products.
We have a chemo solo just for those of you who can following us for some time.
Very familiar with this as an integrated solar to hydrogen generators.
It integrates the CTV technology to all been withdrawn.
And so that's a lot of the <unk>.
Wow.
A grid independent independent modular solution.
Robust criticism radiation levels and available labs.
Okay.
In addition, we also have our.
<unk> chain, which is also a modular and scalable.
In a highly highly efficient tenants.
Tenant solution.
The CMO.
<unk> is a containerized solution that uses all miniaturize technological either the Hugo.
Working in the periods.
The interesting thing is does it become location and power of loss.
Oil and.
Any source of energy.
So we have received your question, but what does the European Union.
European Union consideration of nuclear power as renewable EBIT change and wild with any sources.
Including EPS, so we actually have.
On a product that fits all.
Several types of.
The requirements.
I will now pass to answer that.
Okay.
Yes.
Thank you Rodrigo.
See everybody this morning.
I want to start with a quote from a great Jack Welch.
Strategy is simply resource allocation, we strip away all the noise. That's what it comes down to strategy means making clear cut choices about how to compete.
You can't be everything to everybody no matter, what the size of our businesses were how deep your pockets.
This is very kindly not only for fusion, but the entire industry such a massive addressable market, we need to boil down to the core of what makes us competitive.
Our key assets are the IBO proprietary technology, our strategic land and grants, we secured and our people.
Our business model is transitioning more towards solutions provider and just a technology company.
How's our technology to ramp up production getting numerous facilities operational to buildup track record, while getting to scale through hydrogen production focusing on development.
First that the IBO technology is particularly competitive at less than 10 megawatts projects. So we're focusing our efforts on small to mid size projects.
We see most of the immediate market in the next couple of years as under 10 megawatt projects have a strong pipeline of opportunities to execute this.
As previously noted the market.
As mobility logistics centers, industrial and gas blending opportunities.
Regarding our technology, we are collaborating with upstream technology partners, such as Ballard on the Abra project and recently, we signed a collaboration agreement the global equipment provider to help us build out our mobility and logistic applications.
Over the next few years, our plan is to ramp up production by investing in and expanding our addressable market with Evo chain.
This allows us to focus on all of Europe , and North America as our core markets versus just market was dropped strong sole arrangements.
Yes.
After an assessment of ourselves our production capacity cannot meet the demands of our project portfolio and our and our tax sales are largely driven from our development efforts for these reasons our development portfolio is so strategic.
Developing our own projects allows us to control our own destiny by having more control of our future tax sales pipeline.
Our team has done an incredible job on establishing the equivalent of approximately 200 megawatts of hydro capacity and land has been secured and $50 million of yours and grants have been through here as.
As we continue to work on business development opportunities, we are seeing a clear distinction between projects are under 10 megawatts on larger scale projects.
As I noted this allows us to develop the current market, which is still in a nascent stage, which are mainly smaller projects. While also having an eye to the future for larger projects and larger demand.
With our technology production estimate to be 250 megawatts of capacity until the end of 2025, and our development pipeline being substantially larger and estimated one five gigawatts, we will look to maximize shareholder value by also working with other technology providers to execute our portfolio projects.
This is a strategy, we already kicked off and announced last year and our agreement Ishiba explore solid oxide solution for certain large scale projects. This strategy solidifies fusion fuel as a holistic green hydrogen solutions provider.
To do this we have dedicated decided to create multiple development partnerships first we have fusion fuel, Spain, which is doing an incredible job and built and built a pipeline of projects in Spain that has grown to 500 megawatts of high quality opportunities that are in various stages of development. The team in Spain continues to do a fantastic job.
Secondly, we are creating a development company to focus on building out development opportunities focusing on the North American market one of the most important hydrogen markets currently.
Given our extensive development experience this will be led by myself and Jason Berg.
Continuing to Derisk, our portfolio by working with World Class Engineering procurement and construction companies to minimize construction risks and signed long term customer agreements the price certainty of recurring revenues and EBITDA.
These key elements combined with what we've already initiated with entitling our portfolio will make this attractive to third party capital we.
We continue to work with investors.
50 megawatts of capacity and the balance of our portfolio projects in Portugal, and Europe is how we get to an aggregate total of one five gigawatts.
We will have 200 megawatts of potential technology sales from the development activities potentially 30 megawatt over 30 megawatts of tax sales from third parties.
As more and more of the development projects convert to operational projects utilizing tivo technology that will build up our track record I will make it easier to do a traditional tech sales model and we also benefit from having potentially recurring revenues from the development projects that again will further derisk the overall business.
Yes.
Fusion fuel strategy creates a diversified revenue model with traditional third party technology sales and sales from our projects created by fusion fuel, Spain, and our other development company.
We are currently focusing on we're currently forecasting were 230 megawatts of potential technology sales until the end of 2025 based on our current pipeline and our forecasts are.
Our third party technology sales, our focus on Iberian Peninsula in Italy, we're seeing approximately 10 megawatts of potential sales. This year as Fred highlighted earlier, we have recently been awarded another mobility project and when you another grant in Spain.
We'll continue to explore additional technology sales and work on them and the current in our other core markets.
We have also started commissioning of excellent plant.
And sign contracts for I'll call off project and began invoicing to our client care Megan Portugal. All of this brings our committed tech sale for a total of $12 5 million euros for 2023.
We are projecting additional opportunities to expand the technology sale I'll color also to complete the sale of our recently awarded project in Spain, and a few other near term opportunities to bring our targets over 25 million euros in revenue this year.
We expect exciting things from our partnership with the FERC are forecasting further opportunities in 2024, and 2025 of them based on our recent efforts.
<unk>, Spain, and our other developments do you have a pipeline of as I noted up over 200 megawatts of tech sales for fusion with you on the 2025.
It's a modest but this strategy also monetize most of our brands and provides a steady diet of project pipeline for fusion, while we build up more traditional tech sales model in our core markets.
Yes.
Yes.
Yeah.
Okay.
As noted earlier, our strategy to focus on creating value for our shareholders and project development and our technology we.
We see the benefits the fusion fuel BMO, we execute potentially up to 200 megawatts of tech sales as Mike noted Jeremy potential ACA returns via recurring revenue and fees from creating value in the development process. We also benefit from building a footprint and track record in five core markets, Portugal, Spain, Italy, USA and Canada.
Our development strategy will be to continue entitling our projects to securing strategic real estate grants were available and licensing. These projects secondly, we will commercialize our pipeline by securing offtake agreements and signing EPC contracts to derisk the construction.
Our recently signed our first agreement with Dora gas and we plan to continue building office by signing additional offtake agreements as our projects move towards final investment decision.
This approach will increase shareholder value by monetizing the grants the land and selling our technology will also potentially capture upside and development, while controlling our own destiny through.
Having our own project.
Portfolio, we've created that gives incredible backlog of textiles.
As part of creating this development entity.
We will Opportunistically look to bring in third party capital to support the funding of the projects both in the development phase and.
Construction base, the more we entitled and commercialize our portfolio of projects the more attractive the portfolio will be to third parties fusion will balance.
How far it takes the portfolio prior to bringing third party capital to maximize shareholder value. While also keeping an eye on our financial exposure.
This will be managed by myself Rodrigo and other senior managers of the current team and we'll be adding additional members to support in this effort.
Right.
Let me go back to you.
Great. Thank you Doug.
But as it provides them some.
Overview.
All guidance on our two.
If anybody three outlet.
For 2025 stages.
So once noted for 2023, when we provided guidance that will.
Seeking to achieve 25 million euros of revenues.
Based on our end projects of which starts in many of those have already been contracted.
As mentioned before we've already Invoiced.
For technology sales.
Premium volume Invoiced.
One was in Europe .
So some of these projects were also selling the balance of advancing the equipment. So increases the revenue per megawatt were able to store.
Want to make that clear.
People don't simply divide these megawatts by the revenues to try and updated cost megawatt the boss system.
I would like to note that.
For 2024.
Amy for 80 million euros in revenues.
O'brien with forcing into euros and revenue.
These are largely driven by projects that we are developing ourselves. This is part of that development efforts.
And B it's.
Development partnerships that we have.
So those projects both in the identified as I can say is the overall pipeline.
Yeah.
Gigawatt.
Which will give us 220.
Mega loss for both 2024, and 2025 of fuel type sales.
No.
We just we have not reflected any additional income we expect robust development activity such as fees.
First of all empathy with islands will offset.
The the reason for that is that at this stage, it's too early.
Value of such fees will.
Efficacy because we might have.
So at the moment, it's too early to be able to.
Income would be.
I want to note that we are aiming to be cash flow self sufficient and be able to deliver positive net income in 2024.
If successful we will be one of the first companies in this industry to do so.
Okay.
Also want to highlight as we always have some milestones for 2023.
Naturally I have not.
Included the booking of bus revenues, but that is obviously implies that the previous August .
Yes.
So from our production, we want to keep expanding our production capacity and build out.
Nominal facility.
Is it.
Putting it out in the market, mostly in the first half so especially for.
From a commercial side, we want to make sure we have obviously all revenue is.
Contracted.
Well advanced on that basically already 13 minutes.
It remains the remainder coming from very specific.
Projects that are advanced at this stage.
As well too.
Sure.
But.
24 pipeline into dollars.
Okay.
We've clearly done a good job of securing the grounds for a company of bonds that were already at this stage.
I'd say we've outperformed.
Any expectations on the amount of growth that we could we could hope to secure for all projects.
We will keep developing projects for them.
Pipeline and of course that you all have a blood license and permits for our portfolio.
Safety is always at the core.
Ross This is once in April .
We keep.
Safety forefront of online that's why we make sure that we keep it here in all key priorities for 2023 as always.
Well known as the industry market takes shape and ADHD.
We've noticed.
But our advantage and our technology solution to a particular market needs become clearer.
In addition to the advantage of our project development pipeline sets us apart from our competition.
We hope that will be our ability to be delivering revenues and delivering on the products. We have been punished lendingtree.
The market and the industry recognizes.
The clear value that <unk> has.
And we're able to change the course at all cross sell amongst cash SaaS has taken over.
The recent history.
So with that I'll pause and I'll open up to Q&A.
Alright, thanks to everyone, who listened Ned questions.
As far with your other peers, but will begin with your question.
Chris.
Rubber research.
He asked about the Dura gas Offtake agreement, which was announced a couple of weeks back.
Specifically around.
The duration of that agreement the volumes considered in price and also how will be heightened be transported from from ever aware it will produce to where it will be injected.
Joseph Thank you.
No.
Thanks Pat.
And the inverse so we plan to take it from ever.
<unk> connected via pipeline.
We are working with the local pipeline, operator flow and connecting to the grid.
The agreement is a market based price contract.
Based on that.
Forward looking natural gas pricing and carbon offsets.
And the volume is based on us nominating volume from the project so.
Hi.
Right now we have sufficient volume out of the ever project and that's what it was.
What the plan was that we could have opportunity to expand with future projects through.
How can this be a good solution for cellular.
And our merchant capacity.
Thanks Zack.
Second question is around the <unk> funding, which as a reminder, woods.
$36 million to the system.
Fuels consortium of which gives a feel would receive $22 5 million.
It should be about CNS project.
Will the company receive all of that $22 5 million.
So if certificated when certain milestones.
<unk>.
And actually as equipment is limited.
The amount that is available and.
And we have actually received related to.
<unk> expenses that we expect to have all the development cost of the project that is the case, we'll see buys and also to equal team.
Yes, primarily from <unk> any update on the Bakersfield project in California, we collected.
What is needed to reach.
And when is your expectation of when that is achieved.
Thanks Ben.
Sure.
Including our concept study with black and Veatch, we plan to do that next month and then we'll make a decision with our partners that elected to move to the next phase of work, which is pre feasibility and feasibility which is permitting.
Hi.
The subsequent calls in the first quarter call, we'll provide more guidance on timing.
Have to report just yet, but our anticipation is a late 2024.
Early.
For in California.
Turning now to a question from our Cardona at Royal Bank of Canada.
He asked about the revenue recognition timeline for Exxon.
If you can touch on that.
Okay.
So we can start.
Recognizing revenues for I assume once the acceptance of the project source.
That will be dependent on how the commissioning process goes as I said we.
During March we will start the commissioning process.
And then just separate question around what are the expected revenues related to that project, if we can share.
Cool.
Okay.
$13 million.
Just trying to send is related to absolutely.
Second question from Irwin is at with respect to impairment charges is there any expectation of additional impairments in the first quarter of 'twenty three and beyond.
Not at this stage.
If we had we would have had.
Would have already had to recognize in Q4, even if it was even if we only learned about it subsequently.
At this stage.
We have to take into your desks.
Great last question here.
What's your view on the latest policy developments in the EU in response to that.
Reduction act here in the U S.
Expect additional funding potential near term or incremental commercial opportunities as a result of the latest developments whether that the.
At the EU Green industrial plan or the delegated acts I know, we touched on that somewhat in our.
In our shareholder letter, but if you have any thoughts on that.
So.
And then please.
SCE Belinda Budd.
I don't want to say that the <unk> has been phenomenal poorly.
Industry I know, there's no regarding Europe , but obviously it has pushed Europe another market.
So we are now seeing Europe , we're also seeing Australia start developing sip.
Similar activities.
And beefing up that support for the hydrogen industry.
So we find this.
The pricing.
The movement in Europe .
Naturally the.
There has been obviously some pressure from the nuclear side to infusing energy under the renewable.
Again for all this is in different Cros.
Cubo change perspective is that is power.
<unk> is.
Ignostic so related.
Thrilled to see the developments we believe this will continue.
We've already been hearing.
From Spain.
They are actually increasing.
Grants available in fact, they already reopening some of the.
The type of deposit programs to consider funding some of the projects that were not awarded.
So we do expect that.
That trend.
In Europe to continue hopefully similar to the U S that will also be more support.
On the demand side and not only on the Capex front.
<unk> is expected to take shape with a hydrogen auction.
Later this year.
Similar to the.
We do expect to see more of that and also the margin in Europe .
Try to answer that.
Any color there.
I'm sad to think so.
Also another market that we're in Canada.
So kind of counterbalancing against what the place reduction Act has been doing by working to pass a 40% investment tax credit and hydrogen which will help reduce capex.
The last piece would be.
California is a leader in.
The U S and just general even in environmental and renewable.
Markets and the low carbon fuel standard credit that has really helped drive the mobility market and California proprietary rejoined the structure, we're seeing that replicated or being discussed we replicate in other states throughout the United States, which will help expand mobility.
Which is a kind of a core market for future fuel.
Okay.
There's a question here about about.
Green hydrogen tender that Portugal recently announced in our Puerto Rico. You. Just you just spoke to that the question was why do we.
<unk> intends to apply for parts of this tender.
Thank you Mike will answer that explicitly now you already did.
So.
Hydrogen orchard in many virtual.
Yes, absolutely.
We expect to see not only closet space borrower projects, but also.
Like deposit base together with partners as well.
Okay.
Pivoting to Heber chain briefly a couple of questions here around.
Customer reaction to or early indications of interest from prospective customers regarding Cuba.
Yes.
I think there's been significant interest.
Hello, Jamie.
For the wall with EBIT.
EBIT existing partners.
We're already familiar with U S solar as well as new obviously.
The fact that it opens up.
Additional markets for us helps.
But the hemo changing solution.
Is most of those scalable.
It seems to be.
Thanks.
Yeah, only thing I would add is.
The unnamed reached an announcement of a global equipment provider.
Really is a good fit with our ego chain product.
What we think that there'll be a lot of opportunities that come out of that mill logistic and mobility market. So we're excited about the product advantages product has.
And we're also seeing opportunities in.
Just based on the design of Evo Jane is perrigo.
Perrigo sensitive, it's quite unique compared to our peers.
Seeing a lot of opportunity within curtailed power renewable offer solutions that makes us quite unique.
Putting cost aside compared to any of our peers just based on the fundamental design of the system. So global what we're excited about the mobility market and really tapping into curtail power opportunities without within.
European market and gas blending and other applications.
A question here from Amit Dayal at H C Wainwright.
How much do you expect from Belmont economics on a per megawatt basis.
<unk>.
Can you talk about the costs that will be.
Incurred upfront.
It's supported by the balance sheet.
Yes, so it's a great question.
As I am smiling because every every project is unique right. So.
What the plan is I should have addressed it in the front end.
The presentation is.
The plan going forward on future quarterly calls is as projects reach a final investment decision or a close to final investment decision.
I'm going to highlight those in the presentation. So that way, we can talk about what it means of fusion Joel for technology sales standpoint, what does it mean.
How do we finance it.
Did we get development fees that we get.
Did we get equity returns out of it or equity ownership interests and then I think the last pieces.
The plan for the company is to continue seeding the development of the projects until there is a balance as I noted in my.
In my remarks, there's a balance.
Seeding the projects until a point, where we can create enough value to bringing third party capital but.
The entire plan is to bring in third party capital on the developments and fund the projects once they reach final investment decision that is not in our plan for fusion fuel to do that and take on that capital exposure.
Fred do you want add anything.
Oh perfect.
Alaska.
When do you expect news about the it's a funding.
Cutting decision.
We can you know.
I think what we are growing well.
Wasting pattern here.
We don't have guidance.
Yes.
Mike.
What we noticed is that what we've done.
And then overall pipelines and so on.
We haven't included it so that it doesn't all significantly to stores.
I guess, while we wait for for that.
At this stage.
This has been the case right from the beginning.
We take this as the first one besides we continue to develop our own projects, we continue to engage with third party clients.
We're moving forward with our hydrogen projects sources, we can.
When the if they get to announce we'll have to see how we handle.
Production constraints.
Accordingly.
This is a space, we don't know anything else.
Thank you Erika.
A question here around.
Can you elaborate on your plans for Morocco, Middle East, India, Australia off places, where partnerships had been announced in the past.
You want to take that front or do you want me to.
Yes.
As I just noted right we've.
And again, it kind of goes into the strategy.
And it's going to be clear on that.
We are not.
I don't know if its I don't want us to be looking for a signal that we are abandoning Australia, or Morocco, or North Africa opportunities.
We have finite resources, we have created.
Significant.
Opportunities momentum in the five markets that we talked about earlier, so and we see a much near term opportunities for <unk>.
Technology sales will growth and these development projects.
So we continue to develop and.
And push and push forward in Australia, and North Africa, We hope to have some news.
In the coming months in those markets. How we can then add them into the pipeline discussion that we've been having and we want to make sure that we are being cognizant of where the mark of where we are and trying to give confidence to the market that we're focused on near term actionable opportunities that have land have identified customer.
<unk>, our licensee or licensor have brands.
In order to show a real path to getting to our forecasted a pipeline and revenues.
And I would just add.
It is exactly for that reason just mentioned the focus that we have partnerships for those markets.
<unk> and Rob both or at least what we have Parsons with PTC and so on.
This is wes.
We are counting on partners to help us bring this forward links to other states insurers.
It will start to disclose.
The progress on those as well at this stage.
So.
The principal control.
Right.
Okay.
Last question here.
Certainly do have final question.
And then.
The the level of cost the pipeline chart on slide five the hero solar <unk>, our chain or both.
That one you guys can correct me if I'm wrong.
As we are still in the process.
Industrial I think the balance of systems for the Heber chain, which will which will have an impact.
The level is cost or the cost profile of that product.
Chart reflects the.
And estimated cost for the Heber solar of course.
That level of cost of hydrogen from that product is highly dependent on where that product is deployed right in.
Northern Europe would look a lot different than in southern Europe or in California. So we do assume we.
Would you assume our benchmark location in southern Portugal.
But again.
If that's the point somewhere with superior solar irradiance that number is below that range that we provided et cetera. So that's the answer to that.
So in the absence of a.
One final question here.
Uh huh.
With respect to.
I think liquidity and financing.
On the.
In general and in our own project portfolio is the company in discussion with.
Capital partners.
So that is helping that.
On the on a couple of lessons.
So we will break down so two pieces on the project side.
Like you mentioned the development company our idea is to.
Our partnerships.
The development costs.
That's a substantial government portfolio.
Is it much on that side.
On the corporate side as well.
And for those people we have several options. So we are assuming and we are considering for.
For the.
Capsule onto as much with.
The company is effectively capitalized.
This is something the board management is you should be keeping an eye on.
He'd like to.
To be able to find a capital solution.
For the long term.
That is strategic at this stage I don't want to say more on I'll call them give more details on that and with us getting myself into into problems.
This is.
Something that is being needed to be addressed by <unk> management and board.
Thanks, Puerto Rico last one here, it's not really a question Maury a request is it possible for future correct presentations to provide insight into how much revenue will be recurring versus versus one off yes, what we will make a note of.
That for future reference.
So in the absence of additional questions I guess, we will.
We'll wrap it up here.
So thanks, everyone, who joined us contribute questions. If there are additional questions that come up.
Please feel free to reach out to me and the IR team at IR at fusion SaaS deal that you and we look forward to seeing you all again in our next update.
Thank you.
Okay.