Q2 2023 Plug Power Inc Earnings Call
[music].
Greetings and welcome to the plug power Q2 call at this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference. Please.
Press Star Zero on your telephone keypad.
As a reminder, this conference is being recorded it is tell my pleasure to introduce your host Teal Hoyos senior director of marketing and communications. Thank you to you you may begin.
Thank you welcome.
Welcome to the 2023 second quarter earnings call.
This call will include forward looking statements. These forward looking statements contain projections of our future results of operations.
Or all of our financial position or other forward looking information.
We intend these forward looking statements to be covered by the safe Harbor provision for forward looking statements contained in section 27, a of the Securities Act of 1933 and section 21 E of the Securities Exchange Act of 1934.
We believe that it is important to communicate our future expectations to investors. However, investors are cautioned not to unduly rely on forward looking statements.
And such statements should not be read or understood as a guarantee of future performance or results.
Such statements are based upon the current expectations estimates forecasts and projections as well as the current beliefs and assumptions of management and are subject to significant risks and uncertainties that could cause actual results or performance to differ materially from those discussed as a result.
It's factored.
Including but not limited to the risk factors and uncertainties discussed under item one a risk factors in our annual report on Form 10-K for the fiscal year ending December 31 2022.
Quarterly results on Form 10-Q, and other results we file from time to time with the Securities and Exchange Commission.
These forward looking statements speak only of the day in which the statements are made and we do not undertake or intend to update any forward looking statements. After this call or as a result of new information.
At this point I would like to turn the call over to Paul CEO Andy Marsh.
Thank you T O and thank you everyone for joining the plug second quarter conference call.
Well it is in the process of developing an unparallel.
Hydrogen fuel cell platform.
Topics is a diverse array of products extensive international collaboration.
Backing from government entities by natural partners and our robust infrastructure.
Our second quarter outcome reveals noticeable growth in separately or recently launched products.
Check your elite and our cryogenic sector, which garnered $69 million in revenue, making them more than three fold rise over the previous year.
Our international collaboration are yielding positive results as well.
Through our joint venture with you know the initial product from Friday, It garnered positive reviews.
Kilometer magazine and right now the authority in the realm of commercial vehicles in France.
There was a heavy commercial vehicle of the year 2023 award upon the Hy Vee fuel cell electric vehicle Master bad.
Through our partnership with SK, our joint venture high birth achieved a significant milestone.
The first megawatt scale to electrolyze or to be certified in Korea.
Our strong governmental back and spans across key global capitals.
From Washington, D C to Brussels Oh.
Thinkgeek Harrison soul plug it couldnt be at robust connections with government authorities.
Given the vital intersection energy and climate change with governmental policies, we have proven ourselves as trustworthy experts capable ball for insight and then partial analysis when the path towards a carbon neutral world.
This strategic policy alignment is reaping rewards in the present.
As their Merck and manufacturing company plug generated a $10 billion increase in gross margin dollars during the second quarter attributed to the provisions promoting American made products under the Iraq.
We anticipate further advantages as we tack into manufacturing incentives within D. R. I R. A along with the production tax credit for hydrogen.
E I our rate is starting to pay dividends to plug.
Furthermore, we have actively secure multiple sources of non dilutive capital as we diligently expand our global Green hydrogen generation network.
Presently plug is in the final stages of the second round of due diligence with the D. O loan program office for a 1 billion dollar project financing facility.
We have a term sheet.
Sure She framework and we're working through final processes to get this structure approved at a loss.
Simultaneously we're accessing.
As testing assessing various options, including corporate debt facilities for a major financial institution alternative infrastructure project financing and solutions for I T C project financings.
Lastly, the unmatched nature of our manufacturing infrastructure.
Substantiate not only by our internal evaluation, but also by feedback from customers and potential clients.
Initially designed to support 2.5 Gigawatts of N D. H I Rochester facility now post its scalable pretense potential of up to 7.5 Gigawatts as well.
We advanced the production process.
Well I had the privilege of personally touring our Vista facility.
400000 square foot integration factory with the customer this past Tuesday, and quite honestly they were starved because they've been that everybody else's facilities.
Additionally, our hydrogen plant in Georgia for which we're hosting an investor day on August 23rd and it's the largest green hydrogen plant North America.
Navigating the process of scattering habits that presents its own set of challenges and our ability to Mount.
Their mouthpiece challenge it serve as a distinct advantage for plug.
Well, it's been a gross margin challenges well, it's not readily apparent is that excluding one time charges our margins in the second quarter would have been minus 12% over 20% better than Q1 throughout the rest of the 'twenty to 'twenty three we will see continued margin expansion.
And industry leaders shared with me recently endeavor is truly valuable when it comes with its share of challenges and listened to yam provides a differential advantage.
The journey of mastering the construction hydrogen plant.
In factory capability, developing customers and concurrently introducing an array of new products has undoubtedly been demanded.
However, we firmly believe that the efforts investing in these undertakings will yield substantial benefit for all those best an implied success.
At this point, Paul sorry, Jay and I are prepared to address any questions you may have.
So I think we're open for questions. All right. Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.
A confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
One moment, please while we poll for questions.
Thank you. Our first question comes from Bill Peterson with J P. Morgan. Please proceed with your question.
Hi, Good afternoon team how are you doing this afternoon.
Okay. So good afternoon.
Good afternoon lots of digestion released so.
I mean listen thanks, sure, but I wanted to talk about the.
The upcoming guidance from the U S treasury related to the IRS I know you've expressed confidence in the past.
It seems like there may be some positive news forthcoming, but first of all when should we get some resolution on that.
Just reality matching things and I guess, if it was going to be unfavorable I guess without this PTC how would how do the economics compare between the U S hydrogen plant at a plant in Europe .
Really good question Bill and if I was going to.
Let me answer the first part of your question.
It's our assessment and the assessment of many people that we will see guidance in September .
And I think that from what we can tell from the guidance. It was a good article by Bloomberg, which is consistent with discussions we've had with many senators with people in the White House.
That oh.
No I think that the.
The regulations will be.
I think very reasonable indeed.
We look at these plants today. So there are differences between the energy cost in Europe .
First is the energy cost in the U S.
So if you take for example, our green hydrogen itself.
Yeah, if you think about eight and I'm glad to talk about generation without liquefy case in transportation.
I think at three cents a kilowatt hour.
You're talking probably around $2.50 in the U S did generate at a spot like taxes.
If you think about Europe .
And that would include the cost of production and the cost of depreciation Bill would not include the cost of liquid the casing or transportation.
With vacation probably yeah. It did that facility 75 cents.
Just to kind of give you a gauge.
In Europe with the P. T C. Obviously.
Now the P. T C was structured to make sure that hydrogen with cost competitive with natural gas. So when you start adding on liquid for case in transportation.
You really probably talking about cost around.
Paul what you know $4 50 to $5 out at customer sites for the best case, which would be taxes, which really puts hydrogen in the realm of natural gas and I think that the goal of the eye.
If you look at Europe . The support will be different is really more geared to support if you really look at the total dollars that Europe is putting towards hydrogen fuel cells.
We think those numbers stayed around 870 billion, but it's much more how you work the government grant process. That's why our international collaborations is real important because I know that's a long answer bill, but Oh, if you take for example, our JV with idea we've been able.
To leverage over $200 million million euros in government grants to support the development of that business.
Does that help bill.
Yeah, No that's super helpful.
Maybe the second question for me is.
It sounds like you're moving to the next steps in a potential good promising let's start maybe with the D. A relaunch program office, but I guess what were what remains to be got it sounds like you are in the second stage of due diligence and what would be the timing.
You mean, you successfully pass that bar.
I'm going to hand that off to Paul Bill.
Yeah, Hey, Bill so.
There's a there's a couple of things, but first and foremost our you know the good news is we've come together as Andy alluded in his comments with an outline of the term sheet that we think will work for us and that they can get passed and so that's a big hurdle.
And they are in the final now now they're off to the races doing the final due diligence surround you know market studies technical studies and things that they they just got to kind of finish that process, but I and and then once we get through that are well well well well you know theres a little bit of more polishing to finalize the terms.
She in a format that they can submit their you know their process that they've got it goes to the government agencies to get approved.
So at this point our best guess is that you know we would have something approved and be able to announce something you know hopefully mid November to early December where all that they are equally motivated to get it done fast as we possibly can so we've got weekly meetings and efforts to try and push of those final hurdles.
So we'll see.
How it plays but that's that's kind of the timeline and in my right in that process.
Yeah.
That's helpful. Thanks, a lot guys.
Thanks Bill.
Thank you. Our next question comes from Eric Stine with Craig Hallum. Please proceed with your question.
Everyone have seen the questions here.
Okay.
Good afternoon.
Good afternoon, so I have no I havent been able to adjust digest the entire lever so I might come back with some questions from your Investor Day, you had talked about $4 billion in overall electrolyze or opportunities that you saw over the next 12 months.
I'm curious whether that still holds.
Celebrated and maybe what areas of the market, where you are seeing the most traction with that business.
Eric I'm going to turn it over to Todd J J.
Andy Herrick, how are you. So since we last talked about that that number is actually a if.
If anything gone up a bit we are actually tracking about seven five gigawatt of opportunity as much as $5 billion of potential revenue opportunity for us in that business and by the way Eric one of the things. We've done is rather than talk about a big funnel. We have actually identified project by project right and these are the project, we believe could actually get.
Heidi final investment decision over the next 18 months now look some of them might not materialize some of them moved faster than expected, but that's what the funnel right now and the mix is really when you really think about sort of a mix. There's a lot of opportunity here in the U S actually quite sizable projects you know, we're actually very very far along with some of the sizeable opportunity here.
There is actually and you guys. All saw that we announced this pretty big opportunity with a major oil and gas company in Europe , which we have talked about on our last earnings call and Theres lots of those opportunities in Europe as well as in broadly speaking in the Asia Pacific market as well. So you know again, we are certainly looking to close several more large electrolyze of deals here.
Before the year is over and that's where the funnel them sits right now.
Got it and then maybe Sanjay proudly.
And as well I know a big topic, a few months backwards in terms of green hydrogen and although you got very extensive plans you know whether that actually are going to end up being enough.
And also kind of the open question of how much do you keep for your customers and how much you keep open that you might sell in the market. So maybe some updated thoughts on that would be great.
Yes sure Eric.
Couple of things look I mean, I, we're bringing out green hydrogen plants online is the key to really expanding and improving our fueled business March and we've talked about that again and again I think once we start to produce internally you know that actually reduces our cost of green hydrogen by one third versus what we're having to pay right now in the market.
So it's a step change if you were right and the way the cadence of that is really Georgia, and Louisiana, and Texas than New York, right and obviously, our existing plant in Tennessee. So once we have Texas up and running that's when you actually start to see our fueled business turned profitable and that is still buying from the third party under some of the existing.
Contract right now so our primary goal is to really make sure that we're supporting our customer in our existing application business to make sure that the resiliency that we're supporting them 24, seven you know, it's a mission critical application for them and simultaneously expand our fuel margin from the third party opportunity perspective, Eric I mean.
Our funnel is actually bigger than 500 tons of opportunity, but near term focus is really how do we make sure that we have enough of them.
Handling business, how do we make sure we have enough of our application business. So that the application business in terms of Geo stationary product ends up really having a good total cost of ownership for our end customers and we really start to think about swap opportunity no real change in the view, we still want to have about 20% of reserve capacity to be able to support all of the.
Forced mature that we've seen here in this liquid hydrogen market in North America, but that's really where we are right now Andy would you like to add anything no.
No I think you covered it side yes.
Yeah.
Alright, Thank you very much.
Thanks, Eric.
[noise].
Thank you. Our next question comes from James West with Evercore ISI. Please proceed with your question.
Hey, good afternoon guys.
Hey, James how are you.
I'm doing all right how are you doing any.
Okay.
So curious how you guys are thinking about green hydrogen production in Europe will be obviously, you know the strategy in the U S. You've got a variety of.
Projects in Europe , but I suspect, there's there's more to come what's the I guess, what's the broader.
Our strategy to attack to attack the European market with Green hydrogen.
Yeah. Good question, Eric Let me take a step back.
We believe that when you look at the cost of energy.
And.
The availability of green molecules.
Most of that's going to exist in the northern cone and the southern cone of your work.
As we mentioned in the letter with Oxy owned or you know we're looking to have the first 15 ton plant commissioned by the late later half of 'twenty 'twenty four.
The port of Antwerp will support a good deal of activities, which are going on in France, as well as supporting some activities in Germany, which will be a 35 ton plant, which initial hydrogen production in 2025.
As we've talked about Finland is a area. We're spending a good deal of time, where we feel we'll be able to support up to 10% of Europeans internal goals by 2030 would that by D. In 2020 six so that's a big focus there are smaller.
Activities going on four smaller plants.
In France, and Germany are.
To support, especially our material handling stationary customers.
But that's.
That's kind of you know I think you'll see most of the activity and now we have land we own now in Denmark, and other places which provides opportunities that we've looked at that which could become sites for building out large hydrogen plants.
The key item in Denmark, and Finland is that both of them are looking to put hydrogen pipelines into central Europe . So that is a real that is the real focus support.
Okay. Okay got it that's very helpful.
That definitely does she has to Sandy and then do you guys see a scenario playing out and in the E U.
You're broadly are that similar I mean, they have the green industrial plan, which is kind of the the counter to the I R. A but there's not a ton of detail out there, but do you see something similar to what the what the I R. A is doing for the there could be something similar to what the IRA is doing for green hydrogen in the U S was gonna Supercharging the market.
We do work and we do James and when we look at it yeah, and I'm going to say on paper. It appears to US the dollars that had been allocated in Europe are larger than the dollars allocated in the U S.
The advantage of your class has is the fact that.
It's a much more of a.
Yep public markets activity, so that since it's based on tax credit.
It's easier to navigate.
But we do see in Europe that the overall dollars between now and 'twenty 30 could.
Exceed the U S and look that's why we have partners like ask you on that.
That's why we partner very closely with the Port of Antwerp, now, where now you really need the right for a company like plug you really need the right European partners to really leverage that expansion.
Got it and I think the graphic right.
Okay.
Thanks, Andy.
Yeah.
Thank you.
Our next question comes from.
With UBS. Please proceed with your question.
Hi, Sunny kind of eluded to this split refining is a massive market opportunity as it relates to replacing Green hydrogen you actually announced an order in Europe , one of the bigger ones to replace green hydrogen with Green hydrogen do you see this segment and market growing and Sunday, even U S refiners.
The sorts of green hydrogen and replace that green hydrogen I'm not sure. If you saw yesterday, but does it public independent refiner, who basically on their earnings calls that we are looking for in a crisis to make green hydrogen to support our soft so as an end market for U S refining our Europe refining how are you thinking about that.
I'm going to let Sanjay take that one.
We would ask why.
Yeah Yeah.
So [laughter].
So a couple of comments monarch right short answer is yes.
We certainly see that as a pretty meaningful opportunity. It absolutely makes a lot of sense and frankly. This is weird [laughter] production tax credit really play a major role to make it a level playing field as Andy was talking about it from a price competitive standpoint, more says great hydrogen and green hydrogen and some of these markets right, where the economic start to make sense.
<unk> pricing start to make sense economic value proposition for the customer that is looking to be a decarbonize makes a lot of sense, So and as you know from the industrial opportunity perspective.
Finding industry is actually a very large user of green hydrogen and existing opportunity today, we do see this as a measure of electrolyzed their sales opportunity number one second it could even lead into something like a build on operate model for us and we do have several of those discussion going on not just in Europe , but also in the U S market hard to say exactly when they miss.
Caroline and ended up becoming a concrete opportunity, but we have multiple of those opportunity and ease of gigawatts in gigawatts of electrolyze. It that that industry is going to need in terms of really going from great to green hydrogen and one thing that's actually somewhat very unique or a plug if she would right and this is what we talked about as our enterprise sales opportunity and really trying to sell to the customer.
Need if they want to buy hydrogen we can certainly approach it as a build own operate model, where we own the electrolyze their supply them hydrogen behind the fence. If you what we can do that and if they are just looking to buy it at the capital equipment of course, we are the company that has the scale and.
The Giga factory that can support the kind of the demand and the needs that they have but rest assure we got a lot of those discussion going on both in the U S as well as in Europe , and we certainly see this being a big opportunity.
Thank you I have one quick follow up recently, you do see like Chicken 1500 market first portable hydrogen refueling I wanted to follow up on it how are the conversations with potential customers going with that product do you see that probably not make any impact to your top line in 'twenty four 'twenty five thank you.
I'm going to hand that one over to Sanjay off though Sanjay. Thanks, Andy I got bought up so were actually sold out with that product for this year, but how is the demand is a we have transit companies that are super interested in it we actually have that even opens up some of the traditional existing market for us even on a smaller size because of that mobile refute.
It actually has a lot of application for fuel cell electric vehicle companies that are looking to launch class seven and class eight trucks before the whole infrastructure gets built out right. So we're completely sold out it's a very good margin business for us is well within our cryogenic business you will see a big impact in Q4 of this year with that revenue we see.
The substantial growth coming out of that business. Both in 2024 as well as 2025 and this product already has a gross margin that is within our corporate target that we have articulated in the past. Thank.
Thank you so much and as long as any positive. Thank you.
Just that Sanjay it is so critical to transition because if you're thinking about going with five or six buses to start or you're trying to think about using four or five vehicles.
This is a tailor made products to really support the development of the industry.
And it is it is really a unique offering.
Thank you.
Yeah.
Thanks, Bob.
Yeah.
Thank you. Our next question comes from Colin Rusch with Oppenheimer. Please proceed with your question.
Thanks, so much guys.
Colin.
Good to hear you.
So I really appreciate the time.
Yeah. It is you got to look at some of the challenges in and around your interconnection for renewables and it's all electric power systems can you talk a little bit about what you're seeing in terms of incremental project development demand on the stationary power side, but also how folks are thinking about potentially <unk>.
Hurting some of that power into a into hydrogen to avoid some of the interconnection challenges.
It is.
So.
Whose day, he's not with us today.
Is we are seeing substantial demand.
Activities associate.
You know with especially powering E E vehicles for folks who want.
Fleets for delivery bands.
One.
Bus buses, which are electric vehicles, where are the availability of the grid.
Yeah. It is not there.
No we.
Orders that are.
We could ship up to 17 megawatts this year.
Next year, you know our internal forecasts show 50 to 75 megawatts.
I think everywhere, we go that is the challenge.
And that the stationary product really helps people overcome that challenge.
I really like that market, because it's really to me like the work we're doing with SK.
For high birth, its really to us the future peak or play that we're getting we're getting all this learning developing these products, which adventure of war replace gas turbines and will sit side by side with solar and wind.
Generating hydrogen during the off when the winds blowing using the stationary backup wind and solar farms.
As well as.
Ultimately how nuclear rolls out there's really a close correlation for P codes.
We think it's the perfect product I always like to say to our team. This is generation number two at the moment, it's a it's quite a product.
I expect that this will go through the learning curve after learning curve and there'll be generation after generation, but that demand is that demand is real and that is a real headache for the development of the DS and it's a real head and which we like.
Which we think is important for climate change.
But it is a real real problem. It's also this connection issue is why the debate going on with additionality really doesn't make any sense to us and that it is a you know.
Something that we know that the white house and others no. It is a huge problem. When you sit with Senator Manchin, we talk a lot about interconnect and permitting and what it means for electric vehicles as well as what it means for how you meet the 2050 U S climate goals.
Great. Thanks, so much yeah, and then as you guys continue to scale and look at shorter timeframe on some of these projects can you talk a little bit about the evolution of your supply chain and their willingness to invest in incremental capacity to support growth.
Yeah.
I spent a that's actually why I spent my whole afternoon on N.
We have Oh, we've we've been now it's obviously one critical supplier.
Hi, Matthew Who's moving forward with us.
We have others.
You know it's in the Electrolyze your business.
If you think about let's take an electrolyzed or what do I worry about.
I worry about.
Items like.
And Bert I worry about rectifiers, and making sure suppliers are well positioned to support our own internal needs I worry about control panels.
I worry about fabricators and for all of those three items I think plug and I think we should probably publicly go more about who those partners are.
I, probably can't do it on this call we need to kind of clear with them, but we have been developing our relationships and we do see people, making investments and I think what you'll see is that we've been trying to think through a campus approach at facilities like our Rochester facilities, leveraging our governor.
Member relations there really helped bring companies into places like New York, and West Virginia to support our future needs.
Great. Thanks, so much guys.
Okay cool.
Thank you. Our next question comes from Jeff Osborne with TD Cowen. Please proceed with your question.
Yeah. Thank you I just had a couple of questions on that yet.
Yeah.
Thanks for taking the time, Andy on that the Georgia facility I was wondering if you could give us an update on how the commissioning process is going.
Sundar I recall that I was expecting that to be up and running I thought in early August or July now it still seems like you're making gaseous hydrogen. So I was just curious have you actually liquefied anything at this point or run it at full steam is there any comments you can get give us on a utilization or capacity factors.
And how it's performing.
Yeah sure sure Jeff. So again I think we're fairly look we felt pretty confident that we're going to be producing liquid in Q3 right. Now we are essentially going through ramping up the electrolyte Sir right. We've actually tried to Electrolyze. This one you know that we've been producing gases hydrogen there without gaseous hydrogen plant. We're in the process of actually ramping up our nickel fires.
In the process of cooling down to liquefaction trains.
So again, that's why we're hosting our analyst day on August 22, it right. So that we can actually showcase to you on exactly what's happening there and what's going on so at the moment here are we what are you seeing liquid we're not producing liquid today, but we are essentially ramping up the electrolyze are on path to be able to produce that liquid and Jeff one of the key things here right I do want to.
Trust. This one particular point is you know augie.
Yes.
And I'm, just kind of take the point that elephant in the room. If you what we do recognize that we've been three to six months behind than what we originally wanted it to be but having said that this plant is still coming online in 12 months since we actually you should the EPC contract number one and number two we also wanted to make sure that this is a first of a kind integrated electrolyzed.
Liquefy, our onsite storage. So there are steps, we want to make sure that we're taking from a safety standpoint from the long term operational benefit of the plan. So long story and a quick comment we are gonna be producing liquid here in the month of August we're very much looking forward to hosting you all in August when he thought and we're essentially wrapping up the plant at this point in time.
Until we trailers absolute.
Look forward to it to to the AR being there in person just one quick clarification on Georgia and then the second question is if you're in there always supposed to five times a day if you run at full steam on the electrolysis side.
Yes that is correct, Jeff we actually have held high pressure tube trailers for third party customer many times at that site and the way we wanted to do that right and this is very important for us to do make sure that we're running that forced gas plant optimize the gas plan get the learnings from that gas plant. So that he can take all of that learnings from a control perspective.
Grandpa Electrolyze it perspective, all the safety perspective, when you actually are now ramping up the entire 40 megawatt of Electrolyze to support 15 ton of liquid production and Jeff to a point, where we've actually initiated expansion of about 15 ton down to a 30 ton liquid plant.
At the site because of how we felt about it what has gone so far from our 15 ton production perspective.
Electrolyze yours aren't really anything we're really thinking much about we know they were absolutely.
That's great.
All right.
Sorry can I follow up was just on the hydrogen hubs. How are you positioned for that and what do you think the timing of the awards are from that the government process there.
Jeff I.
I think the hydrogen hub in the eye or a are really closely connected.
There was a letter which was released by the state of New York, The state of Massachusetts State of Connecticut State of Maine that.
You know the hygiene there to make this a nationwide hydrogen.
P. I R. A regulations need to be for the P. T. He needs to be.
Hey, Deane over a long period of time.
I spoke to in New York Governor about that actually just yesterday.
And it is I think you know we see.
More activity come the fourth quarter.
For some initial grants, but for this to become a nationwide network, it's not just the hubs.
It's the hubs coupled with the eye or a and this is something that if you read the.
Letter the state of New York and the other states put in the Treasury really makes clear that if.
If they really limited the eye or a regulations, which I don't think will be the case.
That the impact will be much more modest because the $9 billion quite honestly is a good deal of money.
Not really.
What's going to drive a hydrogen economy, it's kind of like I look at $50 billion for chip facility seemed like a lot of money, but you really need large support from other elements to make that successful.
Same thing holds true for hydrogen we expect.
Some announcements in the fourth quarter.
But it'll be a little bit of towers, and and more moral start flowing out.
Thanks, so much Randy.
Okay Jeff.
Thank you.
Our next question comes from Amit <unk> with BMO capital. Please proceed with your question.
Hi, good afternoon, thanks for taking my questions.
Hello, Amit.
Just a real quick I'm, just thinking about kind of the cadence of kind of cash needs.
Most of the year it looks like between kind of cash flow from operations.
Your your Capex today is kind of where you're just kind of affirm they got $1 billion in cash and I know you guys mentioned, maybe $30 from that deal.
Program.
Would that be funded all at once and then kind of cover your kind of your Georgia, and New York and expenses and how we should think about it.
I'm glad turn cashless questions over to Paul here Paul.
Hey, Thank you thanks for the question.
I guess, a couple of things I would share with you first and foremost.
When you look at the volume that we're projecting.
It's almost double or more in the second half. So there was a pretty heavy investment in working capital preparing for all of these new offerings scaling up electrolyze are scaling up stationary scanlan, our mobility solutions pretty heavy investments in inventory, we actually expect that to come down so I expect us to.
To have that you know from an impact standpoint to the flat to actually generating cash for us in the second half second thing is.
When you look at as Andy shared you know all of the traction, we're making with growing volume as well as the cost downs.
That's going to impact our operating.
Our our margin profiles, so that helps as well so you should see a softening of that in the second half.
The short answer to question is on the on the Doa program.
Or you know until it's done it's not done but you know the timing of exactly how that will play you know will be to be determined in terms of the inflow. We are actually working again as Andy mentioned with other solutions as well.
I think if you look at the next couple of years Theres going to be a combination of debt solutions from corporate debt to project finance to enhanced I T C financings and all of those things you'll see more from us in the coming months as we start to enroll some of those solutions and so it's going to come from one of those.
Grams in the short term midterm and long term as we roll all of those solutions out.
Okay and just one quick housekeeping question in the Investor letter I know you guys reiterated kind of the revenue guide for the year didn't see that for the gross margins I was just wondering if you can kind of level set us off on that for a for the year.
Thank you.
Uh huh.
Yeah, we didn't necessarily give specific updates on on a full year margin profile, but I think you know when you look at the second half you know youre going to see tremendous sequential progress I mean, it's it's gonna be you know.
Really you know you're going to see big step function in Q3, the volume growth and then even more substantial step function in Q4.
Deliver the back half.
It's probably in the.
30, 40 per cent range of sales for the back half and in Q3, and then kind of 50 60 per cent range. You know, giving you rough ranges are in terms of volume in this and in the fourth quarter and when you get to that higher level of sales, it's very accretive and especially when you think about the complement of equipment programs that are in there.
We expect sequential growth and youre going to see.
See you know a strong performance in <unk>.
Gross margin profiles as we progressed through the year.
Thank you.
Thank you.
Our next question.
As a reminder.
Please press star one to ask a question at this time.
Our next question comes from Amit Dayal with each Red White. Please proceed with your question.
Thank you Matt how are you.
Good how are you doing.
Yeah.
Very good.
So Andy you you highlighted you know are moving selling prices higher in your investor lever can you talk a little bit about you know rich product offerings, you were targeting close to this effort and then you know how the <unk> didn't do the rest of the portfolio.
Yeah.
So.
I will let me I'll highlight one platform.
We think there's real opportunities because we have.
Our capabilities.
Far exceed the competition.
We know we know and we've seen that.
As we've tested the market that there are real opportunities in the Electrolyze your business.
Uh huh.
And that's a platform that we've seen that are based on the fact that the demand is there and the supply.
<unk>.
When you really look at People's infrastructure doesn't exist.
We think there is a.
Good opportunity to raise prices.
And we know that because we have been.
And and we've been winning orders.
So that's the one that's one area that's clear to me that there's real opportunities.
So I think that.
We've seen across all of our segments.
Again, because I think because they're very unique position.
Our experience that are.
There are more opportunities than we've been.
Being able to take advantage of the past.
And look it's really.
Really closely tied to.
To all the investments we've made in infrastructure with facilities.
With our hydrogen plants.
With our resources around the world.
At.
We sit at the table with a great deal of credibility that we can deliver.
Which I think uniquely positions us and which creates.
Additional value for plug.
Yeah.
Understood. Thank you so much and then maybe for Paul.
You are.
Anticipating.
Second improvements on the margin side in the second half.
You know the cadence of this.
We're looking at sort of breakeven levels in <unk>, and then moving to you know what.
Gross margin in the fourth quarter or how should we think about this.
Yeah, I I don't know if it'll be quite breakeven in Q3, but it should be you know low low teens kind of range and I think you're gonna you absolutely will see positive in Q4.
And it's pretty pretty meaningful.
Accretion on the rate in Q4 is that east cost downs continue to kick in and equally or more important you know the sales volume that we're talking about.
Have substantial it is that that'll be very accretive since it's the composition of equipment.
Longer term as your infrastructure comes online.
I mean.
Is there possibility where it goes.
Cost of goods sold will actually begin declining some days you know.
Just trying to assume from a modeling perspective, how we should think about it.
You know if the infrastructure.
All of these products.
Comes online.
Yeah, I mean, I'll give you an analogy.
When we built and designed the Rochester facility you know we thought we could do kind of two gigawatts of various products you know between Gen drive product and stacks and electrolyze of products. The learnings we've gone through we now think we could do anywhere from four to five times at <unk>.
Volumes through that facility I mean, you can only imagine the overhead leverage that you can get out of that.
You know.
By leveraging that up so and we think that's going to happen very fast. So we're you know to your point the infrastructure. We've built and are scaling you know the range of things that we're doing you know, it's it's gonna be substantially.
You know accretive as we continue to ramp up the business just to note read loved that doesn't even count or supply chain cost reductions I mean, Andy mentioned today, we spent three hours today, just because we do all the time working on our you know operational enhancements focus on things and so you've got supply chain cost downs, you've got overhead leverage and as Andy mentioned before.
There's various products that we're looking at a price management around an ISP management. So all those things combined is what's going to drive that margin profile.
For the quarter.
Understood. That's helpful. Thank you so much.
Thanks, Amit.
Thank you.
Next question comes from Greg Lewis with <unk>. Please proceed with your question.
Yeah right.
Hey, good afternoon.
Yeah. Thanks.
My first question was around you know, how we should be thinking about the cadence of electrolyzed their orders as we kind of go forward from here you know I mean, I guess projects are going to continue to be big and lumpy, but you know as the.
Kind of the more smaller projects building a base that could kind of maybe smooths out the cadence of orders here over the next.
12 months or I mean, what's kind of what are we seeing out there in the market.
Reagan, but turn that over to subject. Thank you Andy So Greg I think here's how you should think about it right. So you know I think it's gonna be a mix of three key points.
20th our continued strategic stock sale.
Carey good pricing and good margin for US second piece of that is our five megawatt containerized turnkey product, which really makes electrolyze. It easy for a customer right now with the five megawatt product, whereas the stack. There is you know sort of your site acceptance tests and things like that publication management. That's a piece, we're continuing to refine and continue to get.
Then you've got large scale projects, which goes under percentage of completion revenue accounting and as you keep adding more and more of those that gives you that stable base rate, but obviously in 2023, you've seen Q1 versus Q2 be a lot more lumpy, but you will see that pick up in Q3 as you start to see more contribution from some of the.
You know I mean some.
Business, some incremental electrolyze it business as well as some of this five megawatt project business you won't see that step change again in Q4, so from the bookings cadence standpoint, if you're looking next fall months out you should see a lot of five megawatt containerized product booking you should see a lot of stack sales opportunity booking and you should really see.
A large scale.
Project bookings that we've talked about on our last earnings call. We said, we're actually at the very final stages of tangible project announced one clearly there's two more that we're going through legal documentation right. Now. So these are the type of things you should see which would make 2024 smoother and as more and more of this project goes into the backlog and the bookings.
You actually would have thought stable base with five megawatt and the stock sale kind of adding on top of that that's how you should think about the stack up of that revenue should unfold for that business.
Sure helpful. Thank you very much.
Thanks, Greg.
Thank you.
Next question comes from Kathy Harrison with Piper Sandler. Please proceed with your question.
Hi, Kathy Hi, good.
Good evening, Hey, Andy Good evening, Thanks for taking the questions.
So I wanted to yeah. Thanks, I wanted to ask about the the timing and then value of any and all financing transactions that we're discussing here specifically how much capital do you think you're going to raise you know either in the second half of 2022 or 'twenty 'twenty.
Four from peak.
You know pick your source D O E corporate bonds ICC monetization infrastructure funds like well what is the absolute amount that we're looking for here or is it half a billion 1 billion 2 billion, just just trying to get a sense of that.
I'm going to let Paul take that one.
Yeah, I guess, what I would tell you is when we look at that capital and I think about it in kind of like the next 18 months timeframe.
And across the various sources that you've made reference to.
Getting one to $1 5 billion, that's where I'm targeting.
So in that timeframe and you know exactly the timing of when it rolls in and how that's to be determined but we're pretty confident I mean, we could go get that today I mean, it's not that we don't have access to debt capital. We just want them work being very opportunistic and thinking about the best terms best cost best all the different dynamics.
There's debt available. It's just you know I've had term sheets from lots of players. It's just we're trying to be very thoughtful about what we do and when we do it so.
But in that timeframe, that's roughly kind of what I'm thinking about in terms of magnitude.
That's that's that's that's helpful. Paul Thanks for that.
And then and then maybe just a quick follow up question for Sanjay on Georgia, You know as you indicated it's taken a little bit longer to hit the.
The targeted capacity can.
Can you.
Walk us through exactly what the gap has been more recently between.
Deanna will stay back in June and what's actually happened and then wind Georgia is online.
That just is the output for that facility earmarked for materials handling or is it earmarked for a stationary power.
Let me take the second part of the question first right. It's up obviously, our bar for our internal use and for both of those applications right. So that's that's the first piece no in terms of the timeline here as to again I think you know from last week that for US that's where we are right now in the month of August here, we are fully planning.
To produce liquid here this quarter and certainly this month and hosting the analyst day on the 23rd right. So we've actually me you know as we continue to make sure that what is the most optimal way to run the plant. There are learnings that we're having right now we have a choice to make do you keep running or do you actually implement some of those learnings. So you know there are things that we found.
And out that we could do better from a rectifiers and energized Jason perspective, there are learnings that we have from the stack perspective that we're actually going to make the operation of the plant better right. So as we look to implement some of those changes learnings from our gas plant. That's certainly has had some additional time impact here right and again one of the things.
We want to make sure right so for us getting Georgia.
Georgia up and running and getting production in Georgia. It also has to be done the right way and really leverage that learning as we start to think about building our plant in Texas as we're building our plant in New York as well right. So that's essentially what I would say and also another thing you need to kind of keep in mind right is we've been pushing just so you guys know in order to be able to get this plant.
In 12 months or so is what the industry average of 48 month as you know, we've actually been pushing folks, but it's and it's the month of July and August and on some level. The productivity does go down because its 100 degrees outside and people have to actually take break and really be able to cool down and then go back on site and just to give you a sense. The team was on site at quarter.
30, a M. Today right just to make sure that things were happening. So that's another factor. There is nothing anyone can really do about that reduced productivity in the month of June July and August in Georgia, and that certainly has played a bit of an impact here as well.
Would you add anything to that I would just wear shorts to the investor day that have been.
[laughter].
Thanks for that I, if I, if I, if I could sneak one more one more in Andy in the prepared remarks, you talk.
The strategy down there.
Uh huh.
13% I was wondering if you were Paul I could go into some details on what these are exactly and then how should we think about those items over the course of the year.
Great Kashi I'll hand, it over to Paul [laughter], Yeah. So I mean, I guess, what I would say is that just give you a microcosm. For example, you know when you're designing something that's new that's never been done before then you're trying to manufacture and scale. It in mass quantities, obviously, you're going through an incredible learning cold real fast.
So sometimes we learn like certain materials in terms of how they perform.
And then the product and when we currently have Fortunately, we've got a great broad.
You know platform to be able to test the products between the customers that we're selling them too as well as in the case of Electrolyzed. There's you know our own green hydrogen plant. So we're able to accelerate that learning curve, but when you run into the range of things that we're launching.
And the you know and the scale of pace in all of those things he kind of compound those things. So some of it's material sometimes it turns out work, sometimes it's the manufacturing processes in terms of how it works. Your learnings. There you know it's those kind of learning curves that you go through the good news is we feel like in particular many of these things we've kind of.
And through those those humps curves and they're not lessons that you learned again right. So we're able to kind of course, correct and you know go through those learnings quickly and redirect. So that's that's just gives you a microcosm example of some of the kinds of things that.
And those cost.
Thank you.
Yeah.
Thank you our next.
Question comes from Sam <unk>.
With Jefferies. Please proceed with your high Sam good.
Good afternoon Andy.
How're you doing I'm doing well thanks for squeezing me in I'll make it quick you guys. Obviously put out that letter on the 45 Z to the powers that be recently and laid out your case convincingly in my view at least but it seems like the debate or like the the conflicts the inter corporate conflict. If you will is.
On additionality, whereas the next areas of the world wanting it you obviously don't for reasons that make a lot of sense, but with that as the backdrop like what do you guys consider to be a win on additionality like it being put to rest forever or is it still a win if additionality is a requirement that gets phased in over the next five plus years.
So they have.
Wow, Yeah, I'm glad to take a step back and say.
I stand with Senator Carper, Senator Manchin, where senator Carper, who wrote the Bill says Additionality was not included.
Uh huh.
So I I'm going to stand by that.
I would just add the lager additionality, you've pushed out the better it should be.
But it you know.
When people ask me that question.
We've done a lot of work and you may have seen some of that work.
But essentially it's bad for U S jobs, it's bad for climate.
And it's bad for National Security.
And one item that people don't really talk a lot about it.
I think you'll start seeing articles about this this is really at heart.
I know Senator Manchin took me aside and said Andy in part this is a national security decision well United States continued to be energy independent and to put requirements on the hydrogen industry, which the government has not put on their own buildings as they drive to be net zero.
Route.
That doesn't make sense so.
The longer its out the better but yeah.
I see no reason for plug to publicly take a compromised position.
Okay got it that's all for me thanks.
Okay. Thanks, Dan.
Thank you. Our next question comes from Christian greenhouse with RBC capital markets. Please proceed with your question.
Hi, Yeah. Thank you.
Hi.
I guess, maybe just to start here, so and in the Investor letter I think you guys. All kind of mentioned that you had you had pushed out some of the timing on some of these other facilities, maybe six months or so.
Can you just provide I guess some additional commentary on them on that is it really just kind of level setting expectations, and then giving yourself some more cushion or are there. Some maybe delays in construction that that we should be thinking about thanks.
Well I'll, let Jay answer that one correct, yeah sure Chris that that would look I'm I'm glad actually you asked that question and give us an opportunity to talk about exactly what's coming out here right. So in Houston, Texas.
We wanted to make sure that we were going to get a lump sum EPC contract that was very important because that allows you to go and get bankable deal stun makes the project bankable. It really starts to opening a project financing and we got to do that with a partner like Kuwait right now that contract negotiation you know and again. This is the first of a kind hasn't been done into green.
I just don't want the street it took about six to nine months instead of probably a typical three to six months right. So we have not executed the contracts E. P. C is going to start to kick off so instead of actually kicking off about E. P. C is in the month of March. It is now in the month of July . So that's really what has happened here. So instead of that plant coming online in Q2 of 2024.
Second half of 2024, that's what happened here and by the way we felt like that extra three to six months as well what is the right thing to do from basically being able to get a contract like this so that it sets the template and the standard of how this project needs to be executed otherwise working and doing all the things that we did in Georgia all of that learning we would.
Not have taken advantage of that in terms of New York. It all comes down to Substations. We've had we've been having fantastic collaboration with Tonight, but as well as national grid, but as it stands right now that substation is probably going to get energized only in Q3 of 2024 until the substation is energized we cannot bring the liquid plant.
We have procured all the long lead time items. This is our electrolyze. It. This is our local fire. So those issues arent the bottlenecks permitting is not the bottleneck, there's nothing else like that trade, which is why we just wanted to make sure that we articulated why Texas as you know.
Second half 'twenty four why New York is second half 'twenty, four and as it relates to Louisiana. We just wanted to make sure that we're being also talk about what the right structure of the EPC contract needs to look like we've been working hand in hand, with our partner Olin and instead of that plant also being you know end of 2024 based on where we are today.
Particularly in the 'twenty to 'twenty three is now going to be Q1 of 2024, that's really what has happened here.
Got it okay. Yeah. Thanks for that and then I guess, maybe just on my follow up here and I apologize because I think my phone or cashiers might have cut out during during his last question, but yeah.
In the letter here, there's I think you mentioned $45 million of incremental investment costs kind of in the quarter.
For girls.
Is that like investments that are going to have sort of pay dividends going forward or is that just sort of things that you had to had to do in the quarter to true things up and then I guess get infrastructure, where it needed to be I guess, how should we think about the benefits of that incremental spend.
Yeah, well I mean, the short answer to your question is absolutely, yes, I mean, when we think about just the just.
To put some context.
All of our Electrolyze will be four times the size of it in volume that we did in the first half and as we grow into next year. The volume is growing dramatically and this is a product that's very quickly generating a profitable product.
Margin that is incredibly attractive so and it's you know one of the many areas that we have opportunities for this ISP management, so because of our unique position in that space. So the short answer to your question is absolutely has value and helping us propel these incredibly significant platforms.
That can be incredibly accretive to the company and youre going to see the benefits of that so hopefully that helps provide the color you're looking for.
I appreciate it thank you.
Thank you. Our next question comes from Andrew <unk> with Morgan Stanley . Please proceed with your question.
Hey, good afternoon, thanks for taking that.
Hey, Andy how are you.
Doing well doing well.
I'll just squeeze one quick one in here most of my mine have been asked but it seems like you're pushing pretty hard against additionality and I'm just curious what in a world where additionality is required.
What does that mean for your business and margins in the near term maybe just ask it slightly differently. What are you currently assuming in your margin guidance in 2024 and 2025 as it relates to the hydrogen tax credit. Thanks.
So Andrew let me.
Take a step back.
And remind folks of that.
Plant that Sanjay has rattled off.
Georgia, Texas, New York, Louisiana.
All of that work started.
You know in and started moving forward before the Iraq.
I'll I'll, let Paul answer the second part of that question, but we have real demand for that hydrogen regardless of how the regulations are written.
I think the reason I take such a strong opinions about the IRA.
You know plug along with people like coming are the key we're actually deeply and Bob aimed at helping architect what the language was and I can tell you it never came off.
And so maybe that's why I might be.
I feel quite strong about it because.
It really shouldn't even be a debate at the moment, but let me, let Paul talk about the margin profiles.
And how he thinks about I didn't hear the complete context to your question, though what was the margin impact call. It the higher we.
We don't get the production tax spread well three hours it killed I mean.
The way it's phrased. This holistic you know $3 of kilograms meaningful we're not going to not get it all we're gonna get a substantial portion and if we don't qualify who will so I think we've got a unique position in terms of all of the relationships. We have in Washington to help shape. This in a meaningful way for all of that.
Things that Andy talked about and so you know this year, you're talking about Georgia coming on where we're expecting to start accruing that benefit right away and so it's gonna have impact this year and as we move into next year and turn on the additional facilities that will have even been substantially more you know impact. So when you talk about $3 a kilogram.
You know the majority of that if not all of it in the short term and midterm. The majority of it we get to recognize and appreciate so.
You know that's incredibly impactful for them.
Near term so I think it's fair to say Paul.
Even without the Iraq, our costs go down to one third of what they are today.
Yeah and.
As you know most of you guys know we started our green hydrogen endeavor, even before you already got passed because it is so incredibly economically.
Impactful and accretive to us to produce this is such a much at a substantially lower cost. So you know.
Overall, we're on the right path and right footing and this will be impactful and this is gonna be incrementally accretive and additive to the overall equation.
Okay. Thank you I'll leave it there.
Okay.
Yeah.
Thank you. Our next question comes from Avi.
Northland Capital. Please proceed with your question.
Hi, Avi yeah.
Hey, Thank you for squeezing me in just one quick one so.
Well I keep getting this a lot of news here from like you know, whether it's from different projects in Australia, Europe and whatnot.
So I mean, I feel like we have a lot of incremental value to the existing guidance here, but just where there's no change in guidance.
Nonetheless, when you're going to see but even for another term.
Just wondering at least if you look at 'twenty 'twenty four I Couldnt only fly what projects you could point to that is materially catering materialized could really tipped the scale on the higher end up to that.
Got it I mean, what Washington.
No no. That's you know I've been doing this for 15 years and a pretty good pretty good on revenue over the years that Oh.
I think we're going to stick by the guidance. We provided already in is something really good happens and we're certainly engaged around the world and Sanjay talks about this.
Sales funnel for Electrolyze yours, which are real yeah, we're driving every day to make the number bigger, but what we've said in.
In the past for next year and what we've said for 2025 I think we'll just stay in but not today.
Good try though.
Alright fair enough thanks, guys.
Okay.
Right.
Thank you. Our next question comes from Tom Curran with Seaport Research Partners. Please proceed with your question.
Good afternoon, guys. Thanks for running so much Lady here too to allow some of the rest of us to ask questions.
Yeah, No problem, Tom than you were last but not least.
I made it.
[laughter].
Sorry, Mike.
Just two quick ones.
First Andy Paul.
Just what are some of the main factors that are obstructed the services divisions.
Our ability to get closer to two achieving a breakeven gross margin by this point.
And how has each of those challenges negatively surprised you either just in terms of its nature of the fact that you didn't see coming or maybe its severity and then you know given that what what really under garage your confidence from here. It services will nevertheless be on track for your new profitability improvement time.
Great.
Yeah, So Tom.
Tom.
Let me tell you why.
You know when I look at the challenge.
And the challenge is really comes down to you know I'm.
I'm going to give you the technical challenge and then I'm going to give you the.
Our view of why we believe we have good solutions.
The technical challenge is really associated with that.
The customers and the and this is good or <unk>.
Taking more power out of our unit than they originally did.
And.
That means.
We need to put more power into the box to be successful and most of that is involved with material handling.
The second item is a no.
Fuel cells don't like the start and stop all the time.
And.
We we understand and have.
And scurried at that we know how to manage that which should be another differential advantage long term for plug.
We have about five or six sites that we now I'm glad to talk about the old fleet and the new fleet.
We've taken about five or six sites, which we have implemented.
You know all the knowledge, we've accumulated how to add more power.
To manage all these storage stops and we see that the data shows it works.
And you know our biggest challenge has been how to implement these changes rapidly.
Uh huh.
You know it takes people and that's actually been one of the challenges.
To get that right. The second one is with our metal stack.
And with what we've done we can pack so much more power into a unit that we will never run into this issue.
Again, so I feel very very confident and I. You know this is not a commitment but I.
I said at the meeting yesterday during a review I see no reason long term the service business can't be more profitable than the prop.
Great and then my.
And my follow up would then be sticking with gross margin turning to the equipment Division.
Where our gross margins currently for each of the major product lines. So by major I mean material handling electrolyze yours on ROE mobility crowd.
Cryogenic storage and transportation and stationary power.
What are the run rate targets for each day.
As you hit them on a blended basis or what you expect to enable you to get to that target Division average gross margin goal.
Yeah, there's a lot packed in your question given the range of things that we do.
First and foremost we have historically in my public financials, you can look back and see you know we've hit 30% plus gross margins and material handling so we and and when you look at the breadth of what we're doing there. It's all about continuing to drive that leverage and that will continue to be.
Creative as we grow that you know electrolyze. It is the early phase of what were doing there as I mentioned, we've got a four times the sales in the second half.
But it's already in the Twenty's and will quickly grow up to that 30% plus when you look at our our long tenured our long term margin goals of 30 and growing up to 35%. We expect all of the equipment business to get there just to give you some context and so you know.
They're all at different phases, especially some of the newer stuff like stationery as an example, we're selling our first systems you know as we speak. So those are very early in that process. The good news is it's all about scale.
You look at how fast we're going to ramp these different businesses. It provides that opportunity to scale them from a volume standpoint from a supply chain standpoint, you know across the board. So cryogenic do you know the trailer and the tank business I mean, those were existing businesses that are in the mid twenty's to high upper Twenty's.
So as we are launching and as we're launching new products like mobile refueling and hydrogen trailers those were actually incredibly accretive in the market and they'll be north of 30 year right out of the gate. So don't want to get too discretely, because I'm sure there's customers listening to a lot of these calls, but I would just say you know we have a mix of products today that some more mature that are already in that range and many that.
We're poised if they're not there yet we will get there very quickly so that hopefully that gives you a little bit of color and context.
Very helpful. Upon it.
Go ahead, Andy I'm, sorry, no.
Please go ahead Tom.
No that was a very helpful overview and I was just going to thank you for taking the same marathon approach to your call that the boss starts to hit shows so.
[laughter] that's funny Tom.
[laughter], alright, [laughter] well on that note.
Maybe tell.
Tell the analysts that are we're really looking forward to that.
See you at our in Georgia or in.
August 23rd.
It should be you'll be able to see yep and using the boss analogy time, you'll be able to see a plant like nowhere else in North America, So, it's well well worth coming too.
On top of that a.
Very shortly you will be getting a letter about our plug power symposium, which will be held at our <unk> facility.
Again.
As I mentioned, our stock it's astonishing facility that we have about 10 minutes south of us here and they used them. So thank you everyone for staying on and I look forward to see all of the analysts down of Georgia by now.
This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
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