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HomeInvestmentPlug Energy (PLUG) Q1 2022 Earnings Name Transcript

Plug Energy (PLUG) Q1 2022 Earnings Name Transcript


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Plug Energy (PLUG -14.32%)
Q1 2022 Earnings Name
Might 09, 2022, 4:30 p.m. ET

Contents:

  • Ready Remarks
  • Questions and Solutions
  • Name Members

Ready Remarks:

Operator

Greetings, and welcome to the Plug Energy first quarter 2022 earnings name. [Operator instructions] Please notice that this name is being recorded. I’ll now flip the convention over to our host, Teal Hoyos, director of promoting and communications. Thanks.

Chances are you’ll start.

Teal HoyosDirector of Advertising Communications

Thanks. Welcome to the 2022 first-quarter replace name. This name will embrace forward-looking statements. These forward-looking statements comprise projections of our future outcomes of operations or of our monetary place or different forward-looking info.

We intend these forward-looking statements to be lined by the secure harbor provisions for forward-looking statements contained in Part 27A — and Part 21E of the Securities Alternate Act of 1934. We consider that it is very important talk our future expectations to traders. Nonetheless, traders are cautioned to not unduly depend on forward-looking statements and such statements shouldn’t be learn or understood as a assure — outcomes. Such statements are topic to dangers and uncertainties that might trigger precise outcomes or efficiency to vary materially from these mentioned on account of numerous components, together with, however not restricted to, dangers and uncertainties mentioned underneath Merchandise 1A Danger Elements in our annual report on Kind 10-Okay for the fiscal yr ending December 31, 2021, in addition to different experiences we file occasionally with the SEC.

These forward-looking statements converse solely as of the day on which the statements are made, and we don’t undertake or intend to replace any forward-looking statements after this name or on account of new info. At this level, I wish to flip the decision over to Plug’s CEO, Andy Marsh.

Andy MarshChief Govt Officer

Properly, thanks, Teal, and thanks for becoming a member of Plug’s first-quarter earnings name. You’ll find an in depth assessment of the quarter in our shareholder letter. However let me give a couple of ideas to begin this name. I acknowledge that macroeconomic circumstances are difficult.

Like everybody, we’ve seen a few of the challenges within the provide chain and the worth of pure gasoline. Plug’s future is just not based mostly on the economic system in the present day, however the future. However let me spotlight the current could be very brilliant. Within the current, what number of corporations will improve by over 80% this coming yr in income.

Sooner or later for hydrogen gas cells as outlined by Bloomberg and others is a novel $10 trillion alternative. All of our actions are tied to this chance and tied to a world that’s vitality unbiased and inexperienced. I am going to intend that in the end inexperienced and vitality independence are synonymous. And as an indicator of our current is our gross sales funnel for electrolyzers.

The funnel is roughly $50 million. We have dedicated to guide 1 gigawatt this yr in electrolyzers, we are going to more than likely be growing this objective quickly. How concerning the futures? I am typically requested, can this enterprise scale? Let me provide you with a easy instance based mostly on Q1 financials by telling our gross margin enchancment story. Let’s begin with merchandise.

Our GenDrive product gross margins is over 30%. The price of our new merchandise will proceed to return down as we expertise our conventional 25% studying curve for gas cells and electrolyzers. All our current proxy at in the present day’s volumes could have a minimal of 30% gross margins. Our service and learnings are being carried out and exhibit now and can lower our service prices in the end by 45%.

With deployment of our inexperienced hydrogen community, 70 tons which will probably be accessible by yr’s finish, our value will probably be one-third in the present day’s value. And our PPA, which incorporates property we are able to in the end personal will probably be web optimistic. These numbers align with our 2025 objective of $3 billion in income, 20% EBITDA and 17% working revenue. That is the equation for achievement.

We’re constructing the class king with a transparent strategic and tactical plans, nice clients’ workers that is unmatched within the business. I’ve by no means been extra optimistic concerning the match between our strategic and tactical plans as I really feel in the present day. Paul, Sanjay and I are actually able to take your questions.

Questions & Solutions:

Operator

[Operator instructions] Our first query comes from Chris Souther with B. Riley.

Chris SoutherB. Riley Monetary — Analyst

Good to see a few of the nonmaterial dealing with stuff actually take off right here. May you give us a way of how that $45 million breaks down between electrolyzer on-road and another finish markets there?

Andy MarshChief Govt Officer

I’ll let — I’ll let Paul reply that query.

Paul MiddletonChief Monetary Officer

Sure. I’d say it is — and there will probably be extra element within the queue, Chris. Nevertheless it’s about — in all probability roughly a 3rd of electrolyzers, however that pipeline is rising and scaling. That enterprise will probably be quite a bit larger within the second half given the ramp of the pipeline and the manufacturing capability.

The opposite stuff is principally the acquisitions.

Chris SoutherB. Riley Monetary — Analyst

OK. Obtained it. After which simply one other one on the gas margin enhancements. It looks like you are persevering with to be very optimistic on the long-term trajectory there.

And if we’re form of one-third of the price for inexperienced hydrogen versus form of what we’re paying in the present day, how ought to we form of feather that in because the capability ramps up? Do you assume that is form of a direct when capability comes on-line, we must always form of assume that decrease pricing? Or is throughout form of the ramp-up? Is it going to be — take a while to form of hit that kind of fee?

Andy MarshChief Govt Officer

Chris, I’ll let Sanjay take this one.

Sanjay ShresthaChief Technique Officer

Chris — good query, proper? So clearly, the price will go down because the plant ramps up. That is the way it performs out. However having mentioned that, we have mentioned by the tip of 2023, we’re breakeven, attending to money stream optimistic from operations stand by 2024. So you possibly can form of take into consideration because the 17 tons come on-line, that may actually cut back our blended value in 2023.

That value will additional enhance in 2024. And as you go to 2025, we really feel very assured that we get to that company gross margin goal of 30%. That is actually the way it performs out from a cadence standpoint. And yet one more factor, if I could add, proper? I feel like within the month of April, our plant in Tennessee really operated at 93% for the reason that expanded capability, and that’s going to assist with our general blended value of molecule as effectively.

So that is what you will note occur. Because the crops come on-line, we are going to progressively ramp up. And as soon as the crops are at that 92% of the capability from the utilization standpoint, you will see the total advantage of the discount within the gas value.

Operator

Our subsequent query comes from James West of Evercore ISI.

James WestEvercore ISI — Analyst

Andy, I am curious concerning the latest MOU you signed with Olin Company to remove a few of their byproduct hydrogen. I do know the preliminary JV seems to be comparatively small, however they produce, if I am right, much more hydrogen than the preliminary JV suggests. It looks like this could possibly be recreation altering. May you speak a little bit bit about form of your strategic pondering right here, the rationale and the way it happened?

Andy MarshChief Govt Officer

James, we do assume it is an essential step in constructing out our community. Olin has a waste stream, which might be over 350 tons of hydrogen per day. That is important. And this relationship is absolutely just the start.

And while you begin wanting on the value, it’s equal to underneath $0.02 a kilowatt hour for electrical energy, plus on high of that, the complexity of the plant is way, a lot easier. We expect the connection with Olin will develop into a important component in constructing out our hydrogen community throughout the U.S., which is able to place us to broaden even quickly. That is, I feel — Sanjay, I feel we really feel we are able to get these crops up by the primary quarter of subsequent yr, which is an actual — which will probably be actually helpful for our prices. Sanjay, what have I missed?

Sanjay ShresthaChief Technique Officer

No. I feel you have just about summed it up, Andy. However James, as you mentioned, we’re clearly fairly happy with this partnership. Extra to return.

And as Andy mentioned, there’s a reasonably large substantial quantity. And once more, that is a type of alternatives the place which will probably be a reasonably important a part of constructing this North American inexperienced hydrogen community along with a accomplice like Olin right here.

James WestEvercore ISI — Analyst

Proper. OK. After which possibly, Sanjay, if I can simply ask why you selected — or they — otherwise you guys selected the St. Gabriel, Louisiana plant to begin the challenge? Was there one thing distinctive about that? Or is that simply there’s accessible capability?

Sanjay ShresthaChief Technique Officer

Properly, first off, this will probably be a 15-ton plant, proper, given the stage of the place it’s, availability of feed gasoline, potential to truly make that feed gasoline additionally inexperienced and so that is the rationale by way of why we determined to work on that one there. It is a dialogue we have been having for a very long time, James, as you possibly can think about. It materialized right here only recently, however it’s the primary one and hopefully many extra to return going ahead.

Operator

Our subsequent query comes from Colin Rusch with Oppenheimer & Firm.

Colin RuschOppenheimer and Firm — Analyst

May you speak a little bit bit about the way you’re — may you speak a little bit bit concerning the evolution of your pricing technique relative to adoption charges? And any kind of value administration that you just’re doing, clearly, inflation is impacting a variety of of us. And definitely, you guys cannot be absolutely immune. However simply making an attempt to consider the way you guys are approaching this along with your clients to form of throw the needle.

Andy MarshChief Govt Officer

Sure. That is a great query, Colin. So if I take a step, we’re in a — at all times hesitant to speak an excessive amount of about pricing. However I’d say that we take a look at the steps we’re taking in hydrogen, we’re extra centered on managing our personal value to help our clients.

We discover that product pricing for — and gas cell are reflective of the rise in prices within the market. And there was a lot of our service is related to lowering our value that I feel our service mannequin is evolving to the purpose the place Chris Soriana, who runs our service group, we clearly see the 45%, we’re actually seeking to drive it down even additional. So clients are — I am not going to say like worth will increase, however a extra understanding and open worth growing.

Colin RuschOppenheimer and Firm — Analyst

Wonderful. After which simply occupied with the brand new facility and the ramp there. I assume, clearly, it seems like there’s an terrible lot of latest automation in, and I am questioning in case you can speak about form of preliminary yields with that automation and what you are seeing as far as you to begin to map that up and get ready.

Andy MarshChief Govt Officer

Sure. I feel that is — and I do not know if we stored it within the letter. However after we take a look at the stack value for electrolyzers, the automation will enable that value to be diminished by 70%. So it’s important.

And that, Colin, actually makes our electrolyzers extraordinarily aggressive. It is why through the letter — through the — my opening assertion, I expressed such confidence within the 1 gigawatt, which will probably be fairly worthwhile for Plug. And on high of that, I actually do count on that quantity to extend because the yr goes on. We’re tasks alone which can be 1 gigawatt in measurement.

And fairly actually, it is a good market as a result of folks actually aren’t able within the free world to provide at this degree.

Operator

Our subsequent query comes from Invoice Peterson with J.P. Morgan.

Invoice PetersonJ.P. Morgan — Analyst

My first query is on coverage. And I assume, particularly in Europe, you in all probability noticed final week the Repowering EU the commissioner in addition to a variety of business CEOs signed a declaration to principally massively improve the electrolyzer capability even throughout the subsequent, name it, three, 4 years. I assume my query is that one thing that Plug feels have to be part of by way of having native manufacturing in Europe? And I assume what does Plug must do particularly in Europe to, I assume, acquire its fair proportion of the 30 drilling alternative in Europe?

Andy MarshChief Govt Officer

So one of many hidden secrets and techniques, Invoice, is that I in all probability invested extra in gas cells and electrolyzers previously yr than anybody else. I feel that uniquely positions us. We do have discussions. And if you concentrate on our model launch the opposite week, we have been effectively represented by Belgium and the Port of Antwerp in addition to many different entities.

We have now relationships with Lhyfe, that are specialists in sourcing low-cost renewables in Europe. I do assume this weekend, I used to be with of us from our HYVIA JV down in Miami. And while you take a look at that relationship, there’s a good probability that we’ll be seeking to placing electrolyzer capability within the — I am not saying this fee so let me step again, Invoice. If you begin occupied with making NVAs we’re critically making that in Europe, which is able to make gas cells or electrolyzers.

And look, we have made the following spherical, the JV within the European funding and the quantity of funding that JV can get could be substantial to help the exercise. I’d not be mild concerning the U.S. both Invoice. Final week, I met with three senators from fossil gas states right here in america.

All of them are occupied with how they’ll transfer their economies to hydrogen economies sooner or later. And I can inform you a type of senators who has been getting a variety of press time could be very, very bullish on ensuring that a part of the local weather invoice contains substantial extension of the ITC for gas cells and hydrogen in addition to the manufacturing tax credit score. So for my time in D.C., I am in all probability rather more bullish than other people as a result of fairly actually, we have been assembly with the oldsters who in all probability are the moderates and the talk and all of them are robust, robust supporters of hydrogen and gas cells.

Invoice PetersonJ.P. Morgan — Analyst

And I assume possibly sticking nearer to residence. I am really right here in Lengthy Seaside [Inaudible] I do know Plug has an honest presence right here. However as there’s a lot of your kind of friends within the hydrogen area, fairly clearly the hydrogen could be very a lot of curiosity right here on the present. I do know you are speaking in your shareholder letter to share extra in your potential technique within the second half.

However I assume in mild of the clear curiosity, what’s — I assume, — you mentioned previously, I feel, two quarters in the past, you do not actually need to be offering to an OEM to any person else to monetize it. However what can Plug do uniquely in a partnership? Wouldn’t it be additionally not solely supplied the gas cell, but in addition the gas itself. I am simply form of curious what’s Plug seeking to do within the heavy-duty area.

Andy MarshChief Govt Officer

Invoice, I feel in case you take a look at the mannequin we have used with HYVIA and the mannequin with HYVIA is that we introduced our expertise. They introduced their expertise, combining them collectively to supply a product quickly to the market. And I additionally need any person who has gross sales channels. And I feel that is actually essential for the longer term additionally.

So we’ve folks we’re working with. We spent a variety of time on this situation. I’ve at all times been possibly not first in making offers in sure areas. However we have at all times made, I feel, sensible offers on the subject of how we entered Europe, how we entered Asia, how we entered Australia, and I feel that I feel endurance will repay for Plug.

And I feel I feel you will be listening to extra fairly within the second half of the yr, as mentioned within the earnings letter. And I can inform you we meet each week on our progress on this space.

Operator

[Operator instructions] Our subsequent query comes from Leo Mariani with KeyBanc.

Leo MarianiKeyBanc Capital Markets — Analyst

Nice. I hoped you possibly can broaden a little bit bit. And I feel if I heard you proper, you made a remark that you are looking at tasks at present on the electrolyzer facet which can be 1 gigawatt in measurement. Did I hear that proper?

Andy MarshChief Govt Officer

You probably did hear that proper, Leo. And PEM is right for that. Let me take a step again. Do you understand that — in case you did a gigawatt challenge like that, it is in all probability 6.5 soccer fields, alkaline.

And with PEM, it is about 40 yards of a soccer discipline. That is one of many distinct benefits of PEM. If you begin actually wanting on the complete value of possession, headwinds palms down.

Leo MarianiKeyBanc Capital Markets — Analyst

Proper. OK. I assume that was — so it seems like it will be a large-scale potential energy challenge that you just’re in negotiations on.

Andy MarshChief Govt Officer

It’s. And we’ve greater than 1 negotiations on.

Leo MarianiKeyBanc Capital Markets — Analyst

OK.

Andy MarshChief Govt Officer

And let me simply point out, Leo, negotiations and discussions, it isn’t an over — a few of the discussions — not one of the discussions we’re having on this space is in a single day. I personally have been in discussions on this for 14 months.

Leo MarianiKeyBanc Capital Markets — Analyst

OK. And I additionally simply wished to the touch base on margins. So definitely, simply form of noticing that your complete gross margin was a little bit weaker right here in first quarter versus fourth quarter. May you possibly simply give a little bit colour on kind of what the primary drivers have been there.

After which moreover, how do you count on to see margins progress throughout ’22? Do you assume you will see margins flip again optimistic by the tip of the yr?

Andy MarshChief Govt Officer

Paul, you need to take that one?

Paul MiddletonChief Monetary Officer

Positive. So the very first thing is in case you take a look at the gross sales quantity, it was down sequentially, and that is due to the seasonality of our enterprise. So we at all times do about one-third of the quantity within the first half. Q1 is at all times the bottom model of that.

It is only a pure phenomenon within the materials dealing with enterprise. It is also a phenomenon of scaling quickly the best way we’re with a few of these new markets and merchandise. And they also — proper now, they’ll be fairly heavier within the second half simply due to the passage of time and scaling up that pipeline. So with that, my gear revenues is down sequentially towards This autumn.

So simply on an apples-and-apples foundation, you’ve a decrease mixture of higher-margin enterprise there. Having mentioned that, we have extra optimistic actions happening in eight years that I have been with this firm. We’re scaling a lot of new merchandise, which takes time to ramp and scale them up. As they ramp and scale, as Andy alluded to, they’re going to definitely be in that 30% gross margin profile.

We have the gas actions, which we have talked about extensively, together with on this name. I do not assume folks actually recognize the truth that it is a step perform change when you possibly can generate that molecule at 40% of the prices have been paid in the present day. That is simply dramatic, proper? In order that’s actually thrilling and the progress that we’re making there in applications like we’re doing with Olin actually enable us to even speed up that. After which — not solely are we delivery merchandise out with a considerably improved reliability profile.

We have now intensive capabilities to return and retrofit the models inside an software and get these advantages. So we have an incredible quantity of sources, greater than we have ever had give attention to reliability and going again and placing in improved stack software program, improved batteries, totally different parts that may actually step perform change that value curve with models which is why Andy mentioned simply inside a brief time period, we will be lowering that value by over 45%. So all of these actions are actively ongoing at the side of rising by greater than double this quarter from final yr. So regardless of the expansion, which is difficult sufficient to navigate, we’re doing all of these actions.

So I am actually excited, as Andy is about all of the prospects of what is occurring and the way that is going to begin to transition in a really brief time period, you will see it by way of the course of this yr. When you take a look at the two-thirds gross sales quantity which means we will be doing extra gross sales within the final six months of this yr than we did all of final yr, simply within the context. In order that’s fairly substantial by way of quantity and a variety of which means it may be very closely concentrated in product, which is the place I assume one of the best margin profile. So it must be very accretive and will probably be very accretive as we transfer by way of the yr.

Operator

The subsequent query comes from Eric Stine with Craig Hallum.

Eric StineCraig-Hallum Capital Group — Analyst

Properly, possibly simply to begin, you introduced the offtake with Walmart as a part of the inexperienced hydrogen technique. That was nice to see. But when we expect long term, and I do know by 2028, the 1,000 tons per day objective. What’s the correct quantity that you just assume it’s best to have underneath offtake agreements? I imply, is there a sure proportion you need to have to have the ability to promote at spot, I assume, for lack of a greater option to say it.

Or do you actually need to maximize that quantity that is underneath contract?

Andy MarshChief Govt Officer

So Craig, let me — let Sanjay take that one.

Sanjay ShresthaChief Technique Officer

Nice, Eric. Good query. Look, I feel we touched on it a little bit bit on our final name as effectively. We do not need to promote out your entire capability, proper? As a result of the best way we’re occupied with constructing this inexperienced hydrogen technology community is, it may be a power majeure resilient community that’s going to make it possible for inexperienced hydrogen is economical, ubiquitous.

So no person ought to ever actually fear about the place the hydrogen comes from as they plan to undertake increasingly gas cell functions, proper? So the quantity that we’ve been focusing on and we have been internally discussing and occupied with is between 70% to 80% of that capability we do need to have underneath long-term contracts, however we completely need to have that 20% to 30% of that capability as a flex capability will help different gamers within the business or the potential buyer within the business in order that the hydrogen actually finally ends up being considered as being very ubiquitous and the inexperienced hydrogen retains on getting increasingly economical. That is how we give it some thought.

Eric StineCraig-Hallum Capital Group — Analyst

OK.

Sanjay ShresthaChief Technique Officer

And, Eric, each other level is a vital one to notice right here as effectively, proper? As a result of after we take into consideration this complete inexperienced hydrogen offtake technique on a long-term foundation is — and I feel you already know this, however it’s in all probability essential for others to bear in mind, so the demand multipliers that comes from new software is an important one as effectively that all of us want to bear in mind like forklift consumes 1 kilogram of hydrogen a day. You will have your mild industrial car at about 6 to eight kilograms a day, Class 8 truck, 50 to 60 kilograms a day. And when you’ve got a 24/7 stationary energy, that is virtually 1.4 tons a day. That is how the demand multiplies for hydrogen and which is one more reason why we’re very strategic and considerate by way of coming into into these long-term contracts to make it possible for there’s sufficient hydrogen accessible for our pedestal core clients as they embrace and undertake new software that hydrogen availability isn’t a priority and by no means a problem.

Eric StineCraig-Hallum Capital Group — Analyst

Sure. No. That makes good sense. Good colour there.

Possibly simply final one for me. Supplies Dealing with, a robust quarter right here. I feel previously, you have mentioned you are focusing on three further pedestal clients in 2022. Simply possibly ideas on the way you’re trending there? And may you remind me, I imply, are you relying on these three to your steerage, I assume they in all probability would not have a lot of an influence even in case you safe them in the present day on 2022, it would be extra 2023.

Andy MarshChief Govt Officer

That is right, Eric. So our steerage of $925 million in income doesn’t embrace that. Simply obtained our name with their head of that enterprise, who’s a Crespo. He is feeling excellent concerning the two potential clients in Europe.

I feel in our earnings letter, we talked about the connection with Lidl, which is creating and actually be ok with the U.S. buyer. So we really feel like we’re trending effectively. Fairly actually, that is — that is the straightforward enterprise for us.

That is the one which after these years, it’s totally, very systematic.

Operator

Subsequent query comes from P.J. Juvekar with Citi.

P.J. JuvekarCiti — Analyst

Andy, Sanjay and Paul. Andy, with value of pure gasoline going up in Europe, inexperienced hydrogen is at par and even cheaper than grey hydrogen in Europe. So your timing in Europe is nice. Are you able to speak a little bit bit about your Duisburg, Germany facility? Would that be a hub like Rochester? And what are the plans there? You mentioned water connection to totally different ports? What are the plans for that facility?

Andy MarshChief Govt Officer

Sure. I’d say, P.J., that fill facility is hub in the present day for mild manufacturing and distribution. However the plans for, I feel, the plans for Europe I feel you will see a few objects. We introduced a small deal for 10 megawatts in Hungary.

I can inform you that in Europe alone, there are in all probability — with David [indiscernible] in the present day, 300 alternatives, Paul, in Europe alone for electrolyzers. And so there’s an unimaginable push. And between that and our actions with HYVIA in France, the place there’s robust monetary help that we’ll in all probability get for placing a facility in Europe that — I feel the alternatives in Europe for electrolyzers with this situation of vitality independence is gigantic, and we see it. And so that you’re proper.

And Plug is uniquely positioned as a result of we are able to really construct merchandise in the present day and ship, which places us in a a lot totally different place than I feel others within the market.

P.J. JuvekarCiti — Analyst

Nice. And my second query is for Sanjay. Sanjay, you talked about right here that the molecule value to get — may get lower in half subsequent yr as you begin these inexperienced hydrogen crops. Are you able to give us a little bit bit extra colour on how does the price go down by half with inexperienced hydrogen? Simply curious.

Sanjay ShresthaChief Technique Officer

Positive. P.J., I feel by the best way, wanting ahead to being at your convention tomorrow. So once more, on the — so let’s take a step again, proper? I imply I feel you guys see it in our P&L as to how adverse the gas enterprise margin is. That is a perform of what has occurred to cost of pure gasoline and the way that worth of pure gasoline has gotten handed on to us.

And we clearly do not go that on to our finish clients, proper? So our margins are negatively impacted right here. When you possibly can virtually extrapolate that these numbers are fairly substantial in excessive single digit to, in some instances, low double digits, proper? Now we have advised you all that in each single one in every of our inexperienced hydrogen plant, we’ve checked out securing low-cost dependable electrical energy. We have advised you ways a lot electrical energy is required to provide 1 kilogram of liquid hydrogen. And the capex is just not the most important part in that specific case, proper? So in case you’re a state of affairs the place inexperienced hydrogen spigot value is nearer to $4 per kilogram, that quantity is getting lower in half.

Now from a consolidated quantity perspective, you wouldn’t see that complete pickup within the gross margin straight away, you see that proceed to get higher as we go ahead as a result of we nonetheless have some legacy contracts that may roll over in 2023, ’24 and ’25 time-frame, however you’ll proceed to see the margin decide up. And one different factor, proper, as this plan retains getting ramped up because the utilization retains going up, within the month of April, we really had much more than 90% utilization in our plant in Tennessee. And regardless of every little thing that is occurring in pure gasoline world proper now, that’s going to truly be an enormous contributor and can assist us with the molecule value even in Q2 versus Q1 of this yr.

Operator

Our subsequent query comes from Craig Irwin with ROTH Capital Companions.

Craig IrwinROTH Capital Companions — Analyst

Undoubtedly recognize this. So Andy, a lot of the issues I wished to speak about have been totally lined at this level. So large image, proper? Plug is among the only a few corporations that is actually executing within the broader gas cells, hydrogen area. And a key a part of that’s inexperienced hydrogen, you are working with the appropriate companions, you are assembly main milestones on a frequent foundation.

What would you do presumably to go sooner? I imply, is that $100 million — $100 million extra a yr. What may you do?

Andy MarshChief Govt Officer

Properly, Craig, I can inform you I give a variety of thought to how you can actually scale this electrolyzer enterprise faster. That signifies that duplicating our facility in Rochester sooner fairly than later may have an enormous profit to our enterprise. Merchandise 2, Craig, is that the work we’re doing on digging by way of Class 8 autos over the following six months. That is an space that we’re absolutely dedicated to creating a transfer and making a wise transfer.

I feel there are two large ones. I feel the electrolyzer enterprise, quite a bit’s going to be whoever has the capability will win. And I feel throughout these occasions when individuals are getting nervous, we’ve the steadiness sheet to do it and to get aggressively forward. And it isn’t off the desk that we’d assume by way of further consolidation of this business on the proper time on the proper worth to even develop Plug larger, sooner.

So that is one sheet provides us energy that I feel typically is hidden by different objects.

Craig IrwinROTH Capital Companions — Analyst

So simply as a follow-up then, it seems like electrolyzers and Class 8 vans are actually key markets that you just’re prioritizing for potential acceleration and that you just’re pleased with the targets you’ve for inexperienced hydrogen over the following couple of years. As the opposite facet of that, you simply signed this wonderful settlement with Olin, I assume, 350, 400 tons a day accessible kind of at their services. What would you say the appropriate quantity? What would make you say the appropriate quantity is 2000? Do we’d like market growth to maneuver sooner to can help you service into that? Or are you scaled appropriately for the way that is creating?

Andy MarshChief Govt Officer

That is an actual good query. I feel that — we’re constructing a brand new 300,000 sq. foot facility — in New York. That gives us the infrastructure to be larger than we’re in the present day for gear. It is the MEA capability of two.5 gigawatts that we’ve to provide a variety of thought to scaling even faster.

You hit on one of many fundamental premises I’ve, the larger the provision of inexperienced hydrogen, the larger the provision. It is a flywheel impact as my buddy Sanjay, at all times says, which is able to drive these apps. And to us, having that hydrogen on is important to our success. So we’re laser-focused on that.

The electrolyzer enterprise, I can not inform you how large it could possibly be as a result of it is — Sanjay, you throw round a quantity to me that they assume there’s —

Sanjay ShresthaChief Technique Officer

Like 150 gigawatt of potential pending alternatives —

Andy MarshChief Govt Officer

Within the close to time period. And no person has a capability or a functionality to construct it. That is why I employed these of us from Tesla. When you take a look at my ops workforce, Greg, I obtained the man who constructed the Reno manufacturing facility, I’ve the oldsters who did ran a provide chain for Musk in Reno.

I’ve the oldsters who automated these factories that work for Plug in the present day. We’re bringing the expertise and functionality and to scale this enterprise fast.

Craig IrwinROTH Capital Companions — Analyst

You positively have the status for treating your employees quite a bit higher. So I hope they’re pleased at Plug for strolling your success.

Andy MarshChief Govt Officer

Touche, Craig.

Operator

[Operator instructions] Our subsequent query comes from Jeff Osborne with Cowen and Firm.

Jeff OsborneCowen and Firm — Analyst

Two fast ones, clarifications and yet one more strategic query. On the clarification facet, simply wished to raised recognize on the nat-gas pricing strikes, how rapidly that flows by way of your P&L. So hypothetically, are your contracts 3, 6, 12 months in length of in the present day was the height of the market and also you’re shopping for — locking in a contract in the present day? When would that stream by way of on a P&L foundation on a worth per kilogram foundation?

Andy MarshChief Govt Officer

Sure. So let Sanjay take that, Jeff.

Sanjay ShresthaChief Technique Officer

So, Jeff, there’s a few quarter lag by way of the pure gasoline worth being adjusted, proper? So you possibly can virtually see what occurred to our gas value, which — so gas prices that we purchase in the present day from our suppliers, pure gasoline represents about 40% of the price of that. And as we are able to see what occurred to the worth of pure gasoline in This autumn, proper? And that is the influence you noticed in Q1. So you can too monitor what occurred to the worth of pure gasoline in Q1. You’ll really see that impacting Q2.

That really will get reset at first of the quarter. That is usually the way it occurs, Jeff. It is on a quarterly foundation.

Jeff OsborneCowen and Firm — Analyst

Obtained it. That is very useful. I recognize it, Sanjay. And simply a variety of transferring items in your corporation, a variety of hiring worldwide enlargement, a number of JVs.

May you give us both formal or casual opex and capex steerage for the yr, simply issues which you could management in life? It will be useful to know the place your head’s at, particularly relative to the Q1 run fee?

Paul MiddletonChief Monetary Officer

For Plug, general? Sure. I feel —

Jeff OsborneCowen and Firm — Analyst

Precisely.

Paul MiddletonChief Monetary Officer

Sure. That $100 million might be a great proxy, Jeff. I feel — so a variety of it’s noncash as we labored by way of the acquisition accounting. There’s some amortization of intangibles and issues like that.

It was in all probability a little bit bit increased than I anticipated as we labored by way of these early — we did the three offers within the final — over December and January. Properly, I feel as we mentioned in the present day, form of $100 million to $105 million per quarter might be a great proxy on opex. On capex, I count on it to ramp fairly frankly. We have talked about getting as much as $1 billion this yr.

So I count on as we undergo the steadiness of the yr with the crops that have been the inexperienced hydrogen services in addition to the brand new buildings that we’re constructing that, that tempo will speed up.

Jeff OsborneCowen and Firm — Analyst

Obtained it. That is useful, Paul. After which, Andy, possibly for you. You mentioned you spent a variety of time occupied with how you can scale the electrolyzer enterprise.

A two-part query for you, in case you do not thoughts. One is, may you articulate why you are profitable, a. After which, b, I would love to know a few of the acquisitions that you’ve got made that your opponents haven’t got, particularly, on frames on the EPC facet and something on the tanks and distribution facet. What I am making an attempt to get at is while you’re chasing this enterprise you are wanting on the pipeline, may you give us a way of what the connect fee or stickiness could be of EPC and storage and distribution.

After which what that does on a income per megawatt foundation for say you of us versus different folks which can be possibly simply offering an gear resolution.

Andy MarshChief Govt Officer

That is a great query. I’ll let Sanjay take the second a part of it. However let me speak — take the profitable a part of it. And I feel the equation comes all the way down to that PEM — there’s at all times a expertise facet, Jeff.

And you aren’t getting to the following stage except you’ve expertise that may meet lower. And I can inform you that with our take care of the Orascom, it got here all the way down to the truth that they did the two-year research of who had what they thought was one of the best PEM electrolyzer expertise, they usually concluded that Plug had one of the best providing. I feel the second merchandise that people take a look at is that who can put all of the components collectively and truly help the build-out of the plant. And also you talked about frames — and in case you look atomization, we’re actually deeply concerned within the transition from fossil gas to hydrogen.

And so lots of our folks come from the oil and gasoline business and know how you can do large merchandise — tasks. And while you begin speaking about 1 gigawatt plant, the way you handle the water, the way you handle the drying of the hydrogen. I feel the potential that we deliver to the desk, particularly with the Frames acquisition, and all of the again workplace help exercise we’ve in India as a result of you actually need for these form of alternatives, heaps and plenty of documentation, heaps and plenty of help. And I feel the third merchandise, it is — I would provide you with a fourth merchandise too.

Third is we’ve manufacturing functionality, and we all know how you can make the merchandise. Which will appear primary. However the truth of the matter is, Plug has been doing this for a very long time in a single business and the actual fact you really know how you can purchase parts, do drilling, construct issues make issues that work, perceive these points uniquely qualify us. And I can inform you the fourth one which Orascom mentioned to me, they conclude that Plug was going to be the chief on this business, they usually need to be with the chief.

Sanjay, I feel now you possibly can form of speak concerning the stickiness and alternatives for liquefiers and vacationers and different alternatives.

Sanjay ShresthaChief Technique Officer

Completely. So, Jeff, one of many kind of latest instance right here with one of many potential buyer was. So there was an electrolyzer workforce, proper? Then we had our workforce that have been really speaking about why we’ve the — probably one of the vital energy-efficient liquefiers. We did not cease there.

We mentioned we are able to really construct you on-site storage. We are able to really construct you tankers, proper, liquid hydrogen tankers as effectively. So while you actually take a look at it from that perspective, as Andy talks about it, proper? This actually provides us that basically, actually distinctive alternative of portfolio sale. So it is a one-stop store.

We are able to handle our provide chain higher. We can provide you higher pricing. We are able to actually provide you with a turnkey end-to-end resolution. And that is the place, one, it is sticky; two, it is clearly the next greenback per buyer alternative even occupied with are a liquid hydrogen perspective, proper? In order that’s the place it turns into a reasonably substantial alternative for us.

And, Jeff, from the numbers perspective, simply to your kind of the modeling of the profit as effectively. That is how we run it. When you concentrate on a 15 tons per day liquid hydrogen plant, you want about seven or so liquid tankers, proper? That is the mathematics you need to take into consideration. You’ll at the very least have about two to 3, 60,000 a gallon shops storage on website as effectively.

However when you go to 45-ton plant, then that is the place you’d really be a big area to truly do the storage on website, and that is not the place on-site storage would really be as relevant from an software perspective.

Operator

Subsequent query comes from Andrew Percoco with Morgan Stanley.

Andrew PercocoMorgan Stanley — Analyst

Only one fast one on website choice for renewables. Simply hoping you can provide an replace by way of what you are seeing on provide value inflation, your capability to supply PPAs for extra inexperienced hydrogen manufacturing services. And if there’s any threat to that 500 ton per day objective by 2025 in North America given this latest Division of Commerce anti-circumvention case on the photo voltaic business.

Andy MarshChief Govt Officer

Go forward, Sanjay.

Sanjay ShresthaChief Technique Officer

Andrew, how are you. So excellent query. So look, I feel very first thing, we have been very considerate about variety of that energy supply. We have now hydro PPAs.

We have now wind PPAs, and we’ve photo voltaic, No. 1. And No. 2, while you actually take a look at our funnel right here between 2022, 2023 and even into 2024, there are some PPAs which have already been signed, which places us, if something, in in all probability extra of a aggressive place versus the opposite method round.

Now even for one in every of — alternative within the West Coast. We have really — we locked within the module worth after we really entered into the event settlement. So that basically places us in a really distinctive place versus what you have seen to the photo voltaic module costs right here available in the market. And also you’re completely proper.

Right here within the close to time period, we have seen an escalation within the photo voltaic and the wind PPAs. However as you already know, while you see this improve within the module costs quick ahead 18 months, there’s usually a really massive capability that will get added. We have seen that time and again occur on this PV and the photo voltaic business, costs do have a tendency to return down. And we have been very considerate about not likely kind of leaping into this very extremely module costs and subsequently, excessive photo voltaic PPA.

We have been strategic about that. We have been alternatives that is already secured. That will get us to the place we have to get to. And Andy additionally touched on it, proper? This all-in partnership actually additionally places us in a really distinctive place not simply to get to that 500 tons per day quantity however probably even exceed that.

So that is the strategy we’re taking. We’re being very considerate about it and never simply leaping into desirous to signal a photo voltaic PPA given what has occurred to the module costs right here within the close to time period in addition to what has occurred to the PPA for the brand new greenfield website, in case you would.

Andrew PercocoMorgan Stanley — Analyst

Nice. That is tremendous useful. After which only one final one for me. I feel, Andy, earlier than you alluded to some potential further M&A.

Is there something left wish to vertically combine? Or wouldn’t it be extra of a — probably extra of a strategic acquisition to broaden into a brand new geography that you do not at present function in?

Andy MarshChief Govt Officer

I’d say, Andrew, that — we clearly are pondering an important deal about Class 8 vans, and that is in all probability a possibility for extra vertical integrations. I feel we’re additionally, and I feel in all probability extra within the partnership facet, pondering quite a bit about large-scale storage and pipelines, nothing — I do not assume we’d do both with out companions, however that is definitely an space we’re giving a variety of consideration to. And fairly — and actually form of additionally these form of actions are form of tagged to the broader infrastructure invoice that’s legislation and the broader hubs, for instance, in New York, the place we expect these kind of choices could possibly be actually helpful in supercharging the hydrogen economic system.

Operator

Our subsequent query comes from Ameet Thakkar with BMO Capital Markets.

Ameet ThakkarBMO Capital Markets — Analyst

Only a actual fast the acquisitions added $40 million of income on this quarter. And I used to be simply questioning on a gross margin foundation, like how did that form of fare relative to, say, your core materials dealing with enterprise and your different merchandise enterprise?

Paul MiddletonChief Monetary Officer

It is decrease. I imply while you — these are companies that we’re scaling with new merchandise proper out of the gate, in case you take a look at our electrolyzer enterprise for instance, it is in all probability going to be six, seven occasions the quantity we did final yr. So it is scaling rapidly and quickly. And I count on the margin on that, notably within the second half as that begins to essentially scale the scale to essentially be within the begin to approximating that 30% goal.

So it is — on a combination foundation, I imply, there’s a variety of totally different parts in that. So it is exhausting to in all probability get intimately on this cellphone name. However I’d simply say, normally, give it some thought as new merchandise that we’re rapidly scaling and quickly rising, and it is anyplace from low double digits to, in some instances, up north of 20%, however we’ll scale all of them as much as that 30% as we transfer to the second half of the yr and onward.

Ameet ThakkarBMO Capital Markets — Analyst

Nice. And I feel Sanjay has form of touched on a few occasions on the decision. However like I feel you guys had talked about with the ability to form of get PPAs within the $0.025 to $0.03 kilowatt energy vary. However form of given increased prevailing energy costs and the DOC investigation, the PPA costs have come up.

However simply to form of be clear, like are we to form of perceive the form of the entire form of energy capability you want for the 70 ton per day exit fee in ’22 is essentially form of in place and also you form of be form of opportunistic and layering form of further energy capability to get to the five hundred tons per day after this sort of settled down. Is that the appropriate method of it?

Andy MarshChief Govt Officer

Sure. I imply brief reply is sure. However let me add even some extra to that, proper? It is really past that 70 tons per day, the place we have really secured energy pricing to see you already know, proper? And so once more, look, I feel we’ll clearly be considerate about it by way of when do we expect is the appropriate time. It is clearly seeing a reasonably significant influence on the PP module costs in addition to the photo voltaic PPAs.

So we’re not going to leap into coming into right into a PPA that we’ve to dwell with for the following 15 years given short-term dynamics right here available in the market, however it really will get us effectively past that 70-ton numbers by way of the already signed PPA with wind and even a few of the photo voltaic offers and likewise a few of the different hydro offers that we’ve.

Operator

Our subsequent query comes from Alex Kania with Wolfe Analysis.

Alex KaniaWolfe Analysis — Analyst

So two questions. First one is simply — I do know that we’re anticipating possibly a little bit bit extra element from the EU on their repower proposal, I assume, within the subsequent couple of weeks. Out of your perspective, what are a very powerful issues that you just’re on the lookout for from that, if something? That is — that may be the primary query. Possibly the second is one in every of your renewable PPA suppliers can also be speaking or has introduced form of a broad built-in kind of hydrogen challenge down on the Gulf Coast involving midstream and renewables and that.

I am simply form of conceptually form of what position and what issues are you on the lookout for, for the attitude of possibly both collaborating in that? Or comparable forms of tasks and possibly how midstream form of property, issues like that may getting be built-in in that over time.

Andy MarshChief Govt Officer

Sure. Sanjay, you need to speak concerning the help and the connection with our PPA supplier?

Sanjay ShresthaChief Technique Officer

Sure. So, Alex, on this, proper. I imply I feel the best way we take a look at it’s that is such an enormous market there are occasions when we will be working collectively. It is virtually just like the coopetition form of an strategy, in case you would, proper, the place you are cooperating at occasions, and possibly there are occasions the place you is likely to be competing.

However we’ve a very, actually engaging PPA with this explicit accomplice, particularly within the Texas space, and we’re fairly happy with that. Look, hydrogen is an enormous market. And once more, we additionally do have further parts that we are able to present to a few of these companions as effectively. So please do not learn into this, however we’re definitely able to have the ability to present them with further options, in case you — like Andy simply talked about it, there’s not a variety of gamers with the form of electrolyzer capability like we’re.

There’s one other a variety of of us that may present liquefiers like we are able to or the liquid hydrogen tankers or the on-site storage. So nothing to share on this name at this time limit. However look, we’re not shocked that there are others which can be coming into this manufacturing of the inexperienced hydrogen from a liquid — it’s best to — we’ll in all probability count on to see increasingly of that, and that is solely a optimistic for the business as a result of it would assist develop extra apps, which is the enterprise we’re in as effectively. In order that’s how we take into consideration that specific scenario.

Alex KaniaWolfe Analysis — Analyst

Nice. Possibly simply on the European facet.

Andy MarshChief Govt Officer

Sure. On the European facet, I feel the important thing to us is the help for low-cost renewables. And fairly actually, that is what we have been working with the European governments on is low value renewables to help deployment of inexperienced hydrogen. That to me, Alex, is form of a key to success.

And the reason being actually form of clear about with 75% of the price for producing inexperienced hydrogen actually tied to the price of renewable energy. So something that helps renewable electrical energy that can be utilized for technology of inexperienced hydrogen, we consider, is important, Alex.

Operator

Our subsequent query comes from Biju Perincheril with Susquehanna.

Biju PerincherilSusquehanna Worldwide Group — Analyst

A fast query. Thanks for breaking out the income contribution from the latest acquisition. So — the query is, as you kind of ramp your hydrogen manufacturing capability, is there nonetheless going to be a possibility for third-party gross sales from the gear from Joule and ACT, and so forth.? And Additionally, are you able to give us a way of how a lot that could possibly be, like in your $3 billion goal for 2025, how a lot is that might come from kind of B sources?

Andy MarshChief Govt Officer

So the reply to the query is totally sure. And I’ll let Sanjay who overlooks these actions provide you with his ideas about how we see that as a part of our 2025 income.

Sanjay ShresthaChief Technique Officer

Sure. So, Biju, brief reply is we completely count on a variety of third-party gross sales from each of these enterprise. Look, we’re right here to help the vitality transition, proper? And we’re right here to assist and work many corporations on the market as a result of it is a large alternative, primary. Quantity two, with what we may do from our utilized cryo now Plug cryo enterprise, we are able to definitely present liquid hydrogen tankers on-site storage as effectively.

And there’s additionally further enterprise for liquid oxygen and liquid nitrogen in addition to part of that enterprise that we do. So look, I imply, I feel we’ve not clearly given what that could possibly be as part of that $3 billion quantity. We simply do have comparable progress fee like form of the expansion that we’re speaking about for the blood mum or dad as an entire. In order that’s one.

Second, on the liquefier facet, so since we acquired Jewel Processing now Plug Course of System, we consider we’ve one of the vital environment friendly vitality consumption for the liquefier. We even have partnerships with the likes of Atlas Copco and Fives that permits us to manage provide chain higher each for our personal inner consumption in addition to a third-party sale. Now when you concentrate on may these enterprise be between $400 million to $500 million in 2025 that ought to — that doesn’t sound like a stretch to us in any respect.

Biju PerincherilSusquehanna Worldwide Group — Analyst

Obtained it. That is useful. After which only a fast clarification. The five hundred tons per day of capability you talked about for 2025, is that inclusive of all in volumes? Or is that going to be separate?

Sanjay ShresthaChief Technique Officer

Sure is the reply. However look, we’re very pleased, clearly, with this partnership, and we’re simply getting began in a single location right here. Hopefully, extra to return. However clearly, very like-minded corporations, we’re occupied with hydrogen economic system in a really comparable method.

So this definitely provides us a variety of flexibility and a variety of variety, in case you would, by way of how we broaden and get to that 500 tons, however it definitely may get us to a quantity increased than that as effectively.

Biju PerincherilSusquehanna Worldwide Group — Analyst

And offers you a variety of leverage in your PPA discussions in addition to —

Sanjay ShresthaChief Technique Officer

I’ll take your phrase on that and also you and I feel I’ll use that going ahead as we’re negotiating PPA. I agree with you.

Operator

Our subsequent query comes from Craig Shere with Tuohy Brothers.

Craig ShereTuohy Brothers — Analyst

I’ve obtained a multipart on gas, however a few of the solutions is likely to be very temporary. So if we’re 70 tons per day inexperienced hydrogen on the finish of the yr and also you need to hold 30% flex capability, that sounds such as you’re roughly balanced to fulfill possibly 50 tons per day inner want. And possibly that signifies that you are not underneath strain to search out pure-play simply gas offtakers like at refiners, utilities and others or possibly subsequent yr. In order that’s form of the second a part of the query.

The third a part of the query, are you ready to share something about proportional roll off in your industrial gasoline provide agreements from ’23 to ’25. After which I observed your Walmart announcement and it sounds good, however I am a little bit confused. Do you want formal agreements? Or are you able to simply naturally swap in your personal inexperienced hydrogen in lieu of third-party industrial gasoline provide? And my closing half to the query is, at what level can you concentrate on beginning your very low-cost challenge debt on these accomplished inexperienced hydrogen crops?

Andy MarshChief Govt Officer

Properly, a variety of questions there, Craig. You are the final one of many day, however not the least. I’ll take the Walmart one after which I am going to let Sanjay take a couple of of the others, and we’ll work out what we have left open. So after I take a look at the Walmart one, it jogs my memory of 2008, after we began with 63 forklift vans which finally grew to become name it $9,500 a day, name it, $10,000.

And that is actually simply the beginning. The main focus is on materials dealing with. The main focus is on offering stationary energy. The main focus is for auto autos.

That is simply to get began of their distribution facilities. And it’s an enlargement of what we’re utilizing in the present day. If you concentrate on 20 tons, that in all probability helps name it, 80, 90 distribution facilities. We’re at 45 in the present day.

So there’s an enlargement there. I feel what’s actually extra essential is it is only a begin on Walmart’s journey to scale back their suppliers’ carbon footprint and their carbon footprint by 1 gigaton by 2030. So, Sanjay, you need to speak about a few of the different objects that Craig introduced up?

Sanjay ShresthaChief Technique Officer

Positive. So, Craig, on the primary one query about our demand versus what our capability goes to be and never needing to essentially defer much more offtake, you are proper. However having mentioned that, have in mind, proper, like similar to the standard vitality business. There may be at all times going to be some kind of a swap settlement.

And look, we need to be — proceed to be shopping for from a few of our hydrogen suppliers proper now on a long-term foundation, pricing needs to be proper. We is likely to be promoting them some inexperienced hydrogen, they usually is likely to be promoting us some — they may proceed to promote us a few of this grey hydrogen right here within the close to time period, proper? So I would not say that we’ll cease shopping for hydrogen from a few of our present provider. One caveat is the worth needs to be proper. That is the important thing as a result of we have to maintain specializing in driving the hydrogen economic system ahead.

Now on the second piece of when do these contracts roll over, and I hope you possibly can recognize the truth that we don’t need to get into that degree of granularity. However we are going to share with you that usually, these contracts are for about 5 years. That is usually how they’re structured. And our view on that, I feel at this time limit, we in all probability do not need to get into an excessive amount of granularity.

So what a part of the query, did I miss?

Craig ShereTuohy Brothers — Analyst

You hit it virtually all of it. The final query was at what level can we begin securing very low-cost challenge debt on accomplished crops?

Sanjay ShresthaChief Technique Officer

Positive. I say, as you already know, it may be similar to another renewable property, in case you would. I imply I feel in the present day, you already know the cap construction for photo voltaic, the cap construction for wind and if there’s a manufacturing tax credit score for this inexperienced hydrogen services, you possibly can count on that there will probably be comparable cap construction like that, relying on the construction of that manufacturing tax credit score, proper? Now having mentioned that, fast-forward a yr, after we are absolutely — the plant is absolutely ramped, it is producing money stream, we really feel fairly assured that you possibly can do again leverage, we are able to in all probability use some kind of a inexperienced bond towards these crops, and that is definitely part of the calculus for us by way of how we plan to recycle capital as we proceed to construct out this inexperienced hydrogen technology community, each in North America in addition to on a world foundation.

Operator

There are not any additional questions presently. I am going to flip the ground again to Andrew Marsh for closing remarks.

Andy MarshChief Govt Officer

Positive. Properly, thanks, everybody, for becoming a member of the decision in the present day. Once I take a look at — we’re constructing out the hydrogen ecosystem. We’re doing it.

We’re constructing the crops. We have now the trailers to ship the merchandise. We have now the shoppers, which is important. We have now the electrolyzers.

We have now the gas cells. Nobody is in a greater place to make the most of this pattern for the hydrogen economic system for the approaching years. So we’re excited. We will ship our $925 million this yr, and I sit up for speaking to everybody on the second-quarter name.

Thanks, everybody.

Operator

[Operator signoff]

Length: 67 minutes

Name members:

Teal HoyosDirector of Advertising Communications

Andy MarshChief Govt Officer

Chris SoutherB. Riley Monetary — Analyst

Paul MiddletonChief Monetary Officer

Sanjay ShresthaChief Technique Officer

James WestEvercore ISI — Analyst

Colin RuschOppenheimer and Firm — Analyst

Invoice PetersonJ.P. Morgan — Analyst

Leo MarianiKeyBanc Capital Markets — Analyst

Eric StineCraig-Hallum Capital Group — Analyst

P.J. JuvekarCiti — Analyst

Craig IrwinROTH Capital Companions — Analyst

Jeff OsborneCowen and Firm — Analyst

Andrew PercocoMorgan Stanley — Analyst

Ameet ThakkarBMO Capital Markets — Analyst

Alex KaniaWolfe Analysis — Analyst

Biju PerincherilSusquehanna Worldwide Group — Analyst

Craig ShereTuohy Brothers — Analyst

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