Q4 2024 T1 Energy Inc Earnings Call
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Jeffrey Spittel, Oscar Brown, Birger Steen, Unknown Executive
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Thank you for standing by and welcome to the Q1 energy fourth quarter 2024 earnings Conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad, if you would like to withdraw.
Speaker Change: Your question again prestige Starwood. Thank you I'd now like to turn the call over to Jeffrey Spittle E V P Investor Relations and corporate development you may begin.
Speaker Change: Good morning, and welcome to <unk> Energy's fourth quarter and full year 2024 earnings conference call.
Speaker Change: With me today on the call are Dan Barcelo, our Chief Executive Officer, and Chairman of the Board, Kevin Kelly, Our Chief Financial Officer, I think Huawei, our executive Vice President of corporate development.
Speaker Change: Rob Gibbons, our EVP of strategic partnerships and Gorgon self said R. S V P of operation.
Speaker Change: During today's call management may make forward looking statements about our business. These forward looking statements involve significant risks and uncertainties that could cause actual results differ materially from expectations.
Most of these factors are outside <unk> control and are difficult to predict.
Dan: Additional information about risk factors that could materially affect our business are available in our S. One and annual report on Form 10-K filed with the Securities and Exchange Commission, which are available on the Investor Relations section of our website with that I will turn the call over to Dan.
Dan: Thanks, Jeff and welcome everyone to our first quarterly earnings call as T. One energy to put it mildly it it's been a busy last several months. Following Q1's transformative acquisition of Trina Solar is U S manufacturing assets and we are excited to update you on our recent progress and our vision for the business today.
Dan: Today's headline is that this is a completely different company than when we spoke to you last in November of 2020 for tier one is now a commercial enterprise that is generating revenues and we now own and operate a state of the art manufacturing facility here in the company's new homeless, Texas and today, we announced our plans to make a significant.
New investments here in Texas, it's great jobs and provide scalable reliable low cost energy for America.
None of this would be possible without the support of our shareholders partners and customers for whom we are grateful with G. One Dallas up and running we're excited to showcase this highly automated and efficient facility as we did recently when we hosted a group led by Goldman Sachs for our first Investor Tour.
Dan: The T. One is opened for business. Our teams are energized focused and playing offense 24 seven to achieve the big aspirations, we have for Q1 and 2025 and beyond.
Dan: Now, let's start on slide four with our key messages for today, we're executing a rapid corporate transformation. He one highlighted by the <unk> acquisition and the implementation of our new strategy as one of the largest U S. Solar module producers the launch of our corporate rebranding as T. One energy the relocation of our global headquarters to Austin, Texas.
Dan: Integration activities as part of an organization and the start of our commercial journey with the achievement of our first revenues.
Dan: The centerpiece of this transformation is G. One Dallas, which is one of the most advanced solar module manufacturing facilities in the world. Thanks to the dedication of our operating teams. We are pleased to report. This morning that the ongoing ramp of module production G. One is preceding considerably ahead of plan.
Dan: While operations had been ramping at G. One our corporate leadership team has been working in parallel to advance the key initiatives that will drive the next phase of <unk> growth.
Dan: This morning, we announced that we have finalized the selection of Sandau Lake Ranch in Midland County, Texas as the project site for our planned five gigawatt U S solar cell manufacturing facility, which will be named G to Boston.
Dan: Having closed the acquisition on schedule the process with the committee on foreign investment in the United States is ongoing after the parties to the transaction filed a joint voluntary notice.
Dan: And finally as Evan will detail shortly our initial 2025 26 operational financial guidance is unchanged. We are advancing capital formation initiatives to fund construction of G to Austin and other growth opportunities and we are pursuing noncore asset sales of our legacy European portfolio.
Dan: Turning to slide five let's start today with an overview of T. One energy and our value proposition.
We are now one of the largest solar module manufacturers in the United States with G. One Dallas, representing roughly 10% of installed domestic capacity.
Dan: Some U S companies with a domestic module manufacturing footprint. We believe the key one is the only U S company with the capability to deliver U S manufactured modules with industry, leading PERC and top Comtech knowledges through our commercial partnership with Trina.
Dan: G. One Dallas provide fund with a state of the art U S manufacturing platform from which we intend to vertically integrate up the domestic solar value chain today, we announced an important next step to advance this strategy with the site selection for our planned G to Austin solar cell manufacturing facility and we are gauged with potential partners to access.
Dan: The rate further upstream on the value chain with the objective of maximizing the domestic content of our products in the process. We expect to establish an American solar supply chain and create new jobs for the communities in which we operate.
Dan: We expect to competitively differentiate T. One by pairing our domestic content strategy with our access to train this technology portfolio, while we onshore solar operations and supply chain expertise.
Dan: Developers want U S domestic content to maximize bonuses under the inflation reduction act and to reduce their exposure tariffs, but they also demand solar and storage products that are highly energy efficient T. One plans to deliver solutions that check all those boxes for our customers.
Dan: Now, let's turn to slide six for a look at the U S. Solar battery storage opportunity that is T. One strategic focus our corporate transformation positions us to build on our U S solar manufacturing position and to leverage our team's expertise in the battery markets salary and battery storage developments are among the fastest growing resources of.
Dan: <unk> supply in the U S based on declining costs, and the speed with which our customers can bring projects online.
Greg: Demand for these solutions in the U S is expected to continue growing the emergence of power intensive industries, such as AI and crypto currency and the electrification of the transportation sector will necessitate significant investment in the U S. Greg <unk>.
Greg: Solar and battery storage is emerging as a preferred solution to provide low carbon reliable cost competitive power, while enhancing grid reliability, we plan to build T. One's U S manufacturing vertical in commercial enterprises to establish a U S domestic content leader in the solar and battery storage market.
Greg: Turning to slide seven.
Greg: Let's review the recent progress we've made to transform T. One as I said earlier. This is a completely different company than when we spoke last with you in November of 24, and our transformation and growth are just the beginning.
Greg: After announcing the transformative acquisition of <unk> U S solar manufacturing assets in early November we successfully closed the transaction on an accelerated timeline in December 2024.
Greg: In February we relocated our global headquarters to Austin, Texas, which has become a hub of renewable energy talent that we can tap into to build our organization.
Greg: We'll be moving into our new headquarters in Austin later this month in conjunction with our relocation we completed the sale of our Coweda County, Georgia land for net proceeds of $22 $5 million later in February we announced the launch of our global rebranding as to one energy T. One brand aligns with our vision to build American solar and battery storage supply chain.
Greg: To deliver scalable reliable low cost energy and to create American jobs as we grow our business.
Greg: This morning, we are pleased to announce that we have selected Sandell Lakes Ranch in Midland County, Texas as the project site for our planned five gigawatt U S solar cell manufacturing facility G to Austin.
Greg: Site selection for development of this size to book it takes about a year.
Greg: Thanks to the work of our project development team, we have completed the process in approximately 100 days, we have a small team of folks working on several initiatives at once and this achievement is a testament to the dedication and skill of two once people.
Greg: And finally this morning, we report that the ramp of solar module production energy one Dallas facility is proceeding well ahead of schedule T. One is now a revenue generating company with a world class operating asset.
Greg: Although we were pleased that we have begun our commercial journey with our first revenues our potential earnings power in 2027 onward, as we integrate our U S. Solar operation is what really excites us and as we indicated in the November 24 transaction presentation. Our planned U S solar cell facility G to Austin is expected to be <unk> earnings.
Greg: <unk> cash flow engine as we get beyond 2026. So we are pleased to have completed announced site selection today on our accelerated timeline.
Greg: Okay.
Greg: On slide eight we provide an update on our operations at G. One Dallas T. One state of the Art U S. Solar module manufacturing facility. This morning, we reported that production output at G. Wanted significantly ahead of plan for the months of January and February actual production exceeded our forecast by nearly 50%, which speaks to the quality of our operations teams who have worked.
Greg: With leading edge proven production line equipment technology.
Greg: With four lines already on production and construction installation activity expected to be complete during the first half of 2025, we are on track to achieve our full year 2025 production target with three four gigawatts.
Greg: The production output of G. One has enabled us to build an inventory buffer to ensure timely deliveries to our customers as offtake contracts are activated and merchant sales commence.
Evan: As Evan will detail shortly we expect to convert the G. One construction loan that we inherited to a term loan from a consortium of banks in the second quarter. The loan conversion is another milestone in <unk> financial and commercial development.
Evan: Going forward, our priorities for Zhu want her to convert the construction loan continue our integration and knowledge sharing efforts as we staff up operations develop our off take portfolio of 2026 and beyond through our integrated marketing and sales initiatives and drive adoption of <unk> internal safety protocols.
Evan: On behalf of the T. One board of directors and management team I wish to thank our people at G. One Dallas for delivering rock start from the World class operating asset.
Evan: Now, let's turn to slide nine to discuss today's landmark announcement of our planned U S solar cell manufacturing development G to Austin.
Evan: Today, we announced that <unk> has selected Sandell Lakes Ranch in Midland County, Texas as the project side could you to Austin as we highlighted in the November 2024 transaction presentation migrating upstream on the U S solar value chain and domestic self production presents a meaningful EBITDA generation opportunity for Q1.
Evan: Bringing this facility online will position <unk> as one of the few integrated use cell and module producers and this integration strategy is intended to provide T ones module customers with enhanced domestic content and the potential to stack the associated section 48 E bonuses.
Evan: With site selection complete our teams are preparing to commence detail engineering, while we advance our capital formation initiatives to fund construction of G. Too often accordingly, we are still targeting a startup construction around mid year and either Q2 or Q3 2025, and we anticipate first production in Q4 2020.
Evan: Six.
Evan: Moving to slide 10.
Evan: Date, you on the transaction timelines and milestones.
Evan: The transaction closed on an accelerated schedule in December 2024, as part of the transaction consideration Trina Swiss entity received 9.9% tier one common equity post money and a $50 million preferred tranche from encompass capitalization.
Evan: As previously communicated we have submitted a voluntary filing with the committee on foreign investment in the United States or stickiness.
Evan: <unk> approval as a precondition to the first anticipated share conversion, we highlighted in the November transaction announcements.
Evan: As we also indicated in November a second share conversion would follow and be conditioned upon a shareholder vote later this year.
Evan: And with that I'll turn the call over to Evan.
Evan: Thank you Dan starting on Slide 11, I will take you through our financial highlights from <unk> and some key finance initiatives as Dan mentioned, we closed the transaction shortly before year end and G. One Dallas is our first commercial asset in operations. This is completely new company and it's visible in the financials.
Evan: Acquisition is fully reflected in our balance sheet for 12, 31 24, while the income and cash flow statements cover eight days of <unk> operations.
Evan: Walk me through some of the associated changes to our financials for this will be visible in greater detail in our 10-K, which should be filed shortly.
Evan: The highlights I'll start with P&L I'm pleased to report the key one is no longer a pre revenue company. During the eight days in <unk> 24. Following the closing transaction Q1 generated the first revenues in the company's history with sales from G. One Dallas and we continue to make sales in Q1 25 with.
Evan: With current production ramping in Q1, and two year and you can see that we have significant working capital builds and inventory and other current assets such as supplier advances on the other side of the balance sheet current liabilities are highlighted by a $48 million deferred revenue associated with customer off takes these are advanced payments.
Reflect 50% of the quarterly price on our two cost plus offtake contracts in each quarter. In addition, we assume long term debt of $427 million from Trina and $81 million convertible notes as per the terms of the transaction.
Evan: Turning our attention to G. One Dallas facility, we expect to complete the conversion as Dan had mentioned that the G. One construction loan to a term loan on or before April 30th conversion and this is important that conversion is conditioned upon installation commissioning testing and independent engineers opinion that all seven production lines.
Evan: Or on an operating and they're intended purpose and we're on track to achieve that thanks to the excellent work of border and our operations team.
Evan: As Dan noted earlier, we are executing an accelerated global strategic transformation of Q1, while we're building our business staffing key positions in ramping up operations in the U S. We're also winding down our legacy operations in Europe. Accordingly, we have reclassified our European business as discontinued operations recorded a three <unk>.
Evan: Entered $13 million noncash charge for legacy assets and designated Giga Arctic in CTV as held for sale and markdown their aggregate value to 43 million. These assets giga artistic and cqb or held for sale and will be marked to market on a quarterly basis.
Evan: We are committed to generating value from our legacy assets and we have retained a financial advisor to run a sale process for noncore assets, which is focused on big Arctic.
Evan: Facility is attracting interest due to its location the abundance of hydroelectric power in that region and could potentially be repurposed as a data center or for other power intensive application.
Evan: Let's turn to slide 12, and some financial color on our GTO Austin U S solar cell project.
Speaker Change: As we indicated in November this manufacturing facility is the centerpiece of our U S. Solar vertical integration strategy and is the key step to developing the pathway to maximizing the domestic content of our solar modules from Q1 as Dan indicated domestic content is demanded by utility scale developers and has attractive margins.
Speaker Change: Like to start by recognizing the outstanding work of our project development team, reaching site selection on accelerated timeline. They completed a process that typically takes more than a year and approximately 100 days, which is a meaningful achievement.
Speaker Change: With site selection finalized on an accelerated timeline our board has authorized the initial project development spending on <unk>, including feed work and we are targeting startup project execution <unk> of this year.
Speaker Change: Site selection is also a critical steps and a critical T. One commitment that will allow us to execute long term offtake contracts with high credit quality off takers for higher domestic content module. This will underpin our project financing finance is active in securing financing for <unk> estimated $850 million of <unk>.
Speaker Change: Capex.
Speaker Change: Firstly, we expect project finance will account for up to or exceeding 50% of the cost.
Speaker Change: Flexibility of other sources for the balance that include one or two mezzanine financing we're engaged in active discussions with potential capital providers.
Speaker Change: 445 ex tax credit monetization. This is our module not sell 45 X. So it's a producing asset and remind at full capacity. The gross amount of our annual PTC is $259 million or merchant ptc's.
Speaker Change: Third customer cash down payments tied to new off take contracts. These are also in current negotiations and as a point of reference our <unk> contract of 500 megawatts at a $40 million deposit that was without domestic content.
Number four and as previously noted the second preferred tranche of $50 million from accomplished capital, which as conditions against certain project milestones and really lastly, noncore asset sales following the sale of our cohort of Georgia.
Speaker Change: Fight, which closed in February we continue to pursue the European portfolio optimization as a potential source of funding and we expect to have more updates in the following quarters as our finance strategy matures.
Speaker Change: Let's move to slide 13 for a quick review of our unchanged operational and financial guidance.
Speaker Change: Guidance is built on production sales and cost guidance as Dan covered mechanical operation the facility pacing better than expected.
Speaker Change: <unk> sales, we began delivering on the one gigawatt Trina contract in January and we expect the 500 megawatt <unk> contract will commence later this month and maintain 500 megawatts in 2025.
Speaker Change: Trina is our sales agent or one nine gigawatts of merchant volumes in 2025, and we're in conversations with many large scale utility developers.
Speaker Change: As you can see from the summary table. This builds to a target full year 2025, EBITDA guidance range of $75 million to $125 million, which implies an exit rate at five two gigawatts of $175 million to $225 million.
Speaker Change: And more importantly, with the project development now underway at <unk>, where the early stages of building an integrated U S solar cell and module manufacturing operation, which is projected to generate an annual run rate of $600 million to $700 million.
Speaker Change: That is the prize.
Speaker Change: So these are all busy and exciting times advanced into Q1, we're grateful for the support of our investors with initial phase of our corporate transformation and we're committed to stacking high return opportunities to generate shareholder value and with that I'll turn the call over to highlight for an overview of Q1 solar vertical integration strategy.
Speaker Change: Thanks, Kevin.
Kevin: Move to slide 14.
Speaker Change: The acquisition of G. One Dallas now gives T, one and American manufacturing platform to maximize U S domestic contract.
Kevin: We started the G to Austin U S. Solar cell project is the first key step to achieving that objective.
Kevin: Given that an American manufacturers solar module with a domestic sell would satisfy 38% of the domestic content requirements for developers.
Kevin: While we are constructing that facility, we will pursue options to source additional components from U S suppliers with a goal of helping our customers achieve domestic content thresholds that qualify for bonuses under section 48 of the inflection reduction there.
Kevin: Solar developers are looking for U S partners, who could supply them with proven leading edge technology solutions provide reliable service and help them maximize these incentives.
Kevin: We now have a roadmap in place to help our customers qualify for these bonuses and we are positioning <unk> to be a leading strategic partner in the U S. While we create American manufacturing jobs and deliver much needed energy at scale.
Dan: And with that I'll turn the call back over to Dan for concluding remarks.
Dan: Thanks, Jaime, let's turn now to slide 15 before we take your questions. Following the transformative acquisition. We closed Q4, we have hit the ground running in 2025, and we are committed to generating meaningful value for our shareholders. The first element in this strategy is to advance our corporate transformation.
Dan: Next items on our to do list are to complete our integration efforts with <unk> teams optimize our U S marketing program to develop our commercial channels and to proceed through the next stages of the transaction, including the expected G. One construction loan conversion in Q2.
Dan: The second piece of that expansion of <unk> American made supply chain with the continued ramp of G. One Dallas production initial project development and GE to Austin and moving forward with options to maximize our U S domestic content.
Dan: The third major priority for Q1 is to build a cash flow powerhouse now that we are generating revenue from our world class asset at <unk>. One we are in a position to accelerate our capital formation initiatives and to evaluate additional high return opportunities on the U S solar and battery storage value chains.
Dan: Before we take your questions I'll Echo Evans gratitude to our investors and I want to commend our employees for their dedication to <unk> mission.
Speaker Change: We are establishing our corporate culture to one that reflects the entrepreneurial spirit of our new global headquarters in Austin, Texas, and the financial hub in New York City on behalf of <unk> Board of directors and leadership team. Thank you to our employees customers partners and investors for all that you do and with that I'll turn it back to Jeff to coordinate the Q&A Jeff.
Jeff: Thanks, Dan Operator, we are ready to open up the lines.
Jeff: Thank you we will now begin the question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad to raise your hand and joined the queue. If you would like to withdraw your question simply press Star one again.
Speaker Change: Your first question comes from the line of Gregory Lewis from <unk>. Your line is open.
Gregory Lewis: Yeah, Thanks, and good morning, everybody and thanks for taking my questions.
Gregory Lewis: I did want to talk a little bit about.
Gregory Lewis: The outlook for 2025.
Gregory Lewis: It sounded like in the prepared remarks, you mentioned.
Gregory Lewis: Offtake for one nine Gigawatts I believe initially it was one five.
Gregory Lewis: Was there any incremental.
Gregory Lewis: It was there any incremental off take and then and then just kind of as we think about it Dan you mentioned around potential inventories.
Realizing that we have the three four gigawatt target the ramp seems like its going into that it seems it is going better than expected.
Gregory Lewis: How do we think about.
Gregory Lewis: Kind of connecting dots are managing this ongoing production ramp with the offtake and and really like how should we be thinking about.
Gregory Lewis: Like building ahead of those maybe some offtake.
Gregory Lewis: Contracts coming into falling into place.
Gregory Lewis: Yes, Thanks, Greg as you mentioned our production is very much ahead of schedule and as we ramp that up we'll be fulfilling both the trina and the RWD contracts as we go into 2025 and as we roll through it is all about integration with our sales agent Trina to build.
Gregory Lewis: Out those merchant and new contracted volumes and we commit to disclosing to the market as those come into place and a minimum on a quarterly basis. So we remain confident in him up with manned profile.
Gregory Lewis: Active with our sales agent Trina to build out that profile and we do have.
Gregory Lewis: The quality of the product both the QA and QC major utility scale customer has visited the site others comfort along the quality of that and as we as a sub licensee of those out between the technology are delivering.
Gregory Lewis: As those customers expect.
Speaker Change: If you'd like to give a little bit more color to the profile as Greg asked about.
Speaker Change: Yes, Hey, Greg hate anybody.
Speaker Change: Yes, it's one five gigawatts as the offtake right. So that's what we have the $1 nine relates to merchant exposure and as I mentioned.
Speaker Change: Both cost plus contracts.
Speaker Change: One is the <unk> offtake has been delivering since January one and our we've been performing on that offtake and the <unk> contract will start ups later this quarter and be in for the full effect of 2025.
Speaker Change: I think what I think the key message here is that about 30% of our volumes are contracted right now <unk>.
Speaker Change: Today's announcement of site location is really going to catalyze the team and Rob as a new member here.
The team and we're excited he has been having conversation on offtake for for over a past year as we move into our investment decision and as we look at the 2027 outlook, we expect that up to 60% of our volumes will be contracted and it will be contracted under long term.
Attractive rate type contracts and those contracts also embeds embed some type of ROFO elements, so kind of a year prior where you could be almost 80% contracted so.
Speaker Change: As Dan mentioned Trina as are our sales agent as it relates to our merchant volumes through the transition, but as we reach 2027, which is really the kind of free cash flow generation.
Speaker Change: The maturity of our of our business the amount and the volatility as it relates to anything in the merchant market or as it relates to things that are non cost plus.
Speaker Change: Improve over that time, Okay thats helpful.
Speaker Change: Super Helpful. And then if you could talk a little bit about I guess, we're in the process of taking the initial loan converting.
Speaker Change: Converting announced with term loan.
Speaker Change: There's kind of 2025 plays out is could there be an opportunity to increase liquidity from that term loan for the company as a whole or is it kind of just should we expect that to be more neutral.
Speaker Change: Yes, I think the term loan conversion itself.
Speaker Change: The important thing about the term loan conversions that it's happening here in April 30th as the deadline, we think it happens prior to that and one of the requirements for that conversion is entire five two gigawatts or install mechanically tested commissioned and audited by an independent engineer right. So like Mccann.
Speaker Change: Nicley at least that risk is is going better and is ahead of schedule as Dan mentioned earlier.
Speaker Change: In terms of.
Speaker Change: Additional liquidity I think it really relates to.
Speaker Change: The moment that.
Speaker Change: Here's the sequence, we announced location today, we sign offtake contracts, we begin to sign those offtake contracts that underpin project financing for <unk> at that point, which we're guiding at <unk>. There is a larger project financing that may or may not subsume the existing G. One financing.
Speaker Change: That would provide incremental liquidity for the period in which we're going to have a heavier capex kind of spend and.
Speaker Change: And by year end.
Projecting.
Speaker Change: Kind of a full ramp up of our facility.
Speaker Change: Okay, Great and then just on the on the solar cell.
Speaker Change: Facility in Austin, I guess <unk>, you do a good job of laying out.
Speaker Change: Slide 12 on slide 12.
Speaker Change: The pathway forward in terms of financing.
Speaker Change: I guess as we think about.
Speaker Change: In preparation for that over the next couple of quarters as I imagine.
Speaker Change: Yeah.
Speaker Change: The project financing kind of is coming later rather than earlier.
Speaker Change: I guess broad strokes, how are we thinking about when we're going to start.
Speaker Change: Putting investing in equity to get the project Rolling and then I think you touched on this around foreign investment.
Speaker Change: Hum.
Speaker Change: Definitely less less familiar with this.
Speaker Change: Traditionally in maybe traditional it doesn't matter in today's world.
Speaker Change: Given trina as a partner what are what should be kind of like our fate and maybe like a base case.
Speaker Change: No.
Speaker Change: How much may be money, they can invest alongside <unk> two is it kind of we roll it out.
Speaker Change: Yes, Thanks, Greg.
Speaker Change: Just to be clear, we're not looking for further investments from Trina for <unk>.
Speaker Change: We're anticipating to finance that through project financing for mezzanine financing through various measures.
Speaker Change: But that in detail like 45 X production tax credit monetization, even as new sales contracts come in goes all usually come with customer cash deposits all of those will be sources of funding for <unk>.
Speaker Change: For for the <unk> site to the location you mentioned it correctly that site location is key that cascades into all aspects for engineering that Cascades all into all aspects for deposits for production line equipment and all of that work has been activated since well since we announced transaction in the fourth quarter of <unk>.
Speaker Change: 2024, we have retained SSO and Joey and JMP as engineering support for the project, we have secured power with the ground lease we have secured water with the ground lease we have secured permits with the ground lease and all of those activities are up and running and right now as we finalize the production line equipment scope, we do intend to.
Speaker Change: <unk> anticipates starting production around mid year. So we see that project cascading well, we're working very effectively and as you know we have the license rights to the Trina technology that gives us a huge advantage in terms of suppliers in terms of equipment and it gives us a huge advantage in terms of timelines. So we anticipate and we're very excited.
About the announcement today.
Speaker Change: Yeah, Yeah that sounds good.
Speaker Change: Yes, and just add just add Greg.
Speaker Change: You've authorized as mentioned spending $8 million right now kind of into feed so we're.
We're making a cap.
Speaker Change: Capital spending in conjunction with a lease today and will be spending money for feed up until the point that we reach.
Speaker Change: That decision and in terms of your sequencing of the capital I think there's two elements that can come in sooner than that.
Speaker Change: Which are basically the deposits so as we execute long term offtake contracts is what the market demands in our perspective in our view.
Speaker Change: That will include some element of deposit, which will be kind of announced when we enter those those contracts and secondly, the.
Speaker Change: Your forward.
Speaker Change: PTC monetization can happen so those two things happened sooner the other two.
Speaker Change: All the rest of the capital kind of comes contemporaneously.
Speaker Change: Okay, Great Great and then with the project financing like it all comes at the same second.
Speaker Change: And then just one more for me just given given the focus on that.
Speaker Change: Building out the customer base and getting more offtake.
Speaker Change: Yep.
Speaker Change: You took over a plant from one of the largest solar companies in the world Thats great.
Speaker Change: Now that the facility is up and running.
Speaker Change: Customers.
Speaker Change: Want or need to come to the site to kind of do their own due diligence or is it something where.
Speaker Change: Really the due diligence is done and it's more just around negotiations at this point.
Speaker Change: Yes.
Speaker Change: Yeah look there's various elements many of these institutional utility scale customers no Trina for years, if not decades, we have had customer visits to the site to visit the new new facility.
Speaker Change: A lot of it is the comfort about the new facility in the United States and so far as we are getting feedback.
Speaker Change: From the utility scale customers there.
Speaker Change: <unk> and very happy with the level of sophistication and automation of equipment.
Speaker Change: As that keeps ramping up will be we'll be updating the market in terms of the production guidance and as I mentioned. This is well ahead of schedule and on the <unk> side, it's very important as we begin construction at the middle of this year, we do look to begin production on the solar cell site by the end of 2026 in the fourth quarter.
Speaker Change: When we have those domestic sales we believe the combination of domestic sales and the combination of domestic modules will enable us to be a very important part of the U S supply.
Speaker Change: Supply chain for solar.
Speaker Change: Yes, we'd love to we'd love to get we look we'd love to get you at the facility and you can see the facility and if you want to break some investors to do a tour.
Speaker Change: I think you'll be impressed.
Speaker Change: Sounds got everybody Hey, thanks for taking my time today and have a great rest of the day.
Speaker Change: Thanks.
Speaker Change: Thanks, Greg day everybody.
Speaker Change: Thank you for your attention.
Speaker Change: Again, if you'd like to ask a question. Please press star one on your telephone keypad.
Jeff: And there are no further questions at this time I will now turn the call back over to Jeff <unk> for closing remarks.
Jeff: Alright. Thank you everyone appreciate everybody joining and we will see you out on the road this quarter and as Evan said look forward to hosting people at the new facility and we will talk to you soon and this will conclude the call.
Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Yes.
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