Bill Peterson: All right. Thanks. I’ll drop back in the queue.
Operator: [Operator Instructions] Your next question comes from the line of from Andres Sheppard from Cantor Fitzgerald. Your line is open.
Unidentified Analyst: Hey, guys. This is Ananda [ph] on for Andres. Thanks for taking our question. So we were just wondering with respect to the KARNO Generator, what you would expect revenue to look like into commercialization and prior to commercialization as we’re in that period right now?
Thomas Healy : Sure. So commercialization will start at the later part of next year. And as mentioned, we’re expecting just a couple of million of revenue coming in next year from that solution. As we get further into this transition, obviously, we’re just announcing it today. So as we get into next year, the first half of next year, we plan on coming back and being able to share more on what we think the future projections of it are. The generator space, the production of electricity market is a huge market. So this is not a market size issue by any means. This is a huge addressable market we’re going after, but we plan on coming back in the first half of next year with projections on what we’re expecting from an adoption rate standpoint.
Unidentified Analyst: Got it. Appreciate the color. And with respect to pricing and competitors, how do you expect to see pricing for the KARNO Generator and comparable products and services?
Thomas Healy : So we’ll come back with more granularity on this, but I just wanted to kind of give some directional numbers. So we are going to be more expensive than a conventional diesel engine, an internal combustion engine. But we’re looking at being substantially less than some of the other solutions like fuel cells that are coming out to the market. But as mentioned, bringing forward a lot of the benefits of those other solutions like the ability to run on hydrogen, having that low maintenance side of things. So I think this is going to be a pretty attractive and compelling solution for the space. Now it’s going to be important for us to focus on where do we deploy these, right? In the beginning, it doesn’t make sense for us to go by — go after market opportunities like standby power generation or emergency operation where the generator kicks on for one or two hours a year.
We suspect that the conventional diesel engine is going to still be the solution there, at least for the time being. But we see our opportunity being more prime power applications where someone wants to become less dependent on the grid and actually make their own electricity. We see peak shaving opportunities, the ability to be able to take flare gas and convert that into electricity take pollution coming off of landfills, produce electricity with that operations where you’re going to really utilize the generator and have a high uptime of it. That’s where we see the KARNO being significantly differentiated. And the great news is there’s plenty of opportunities that can utilize that. Think about warehouses, hotels, hospitals, those are all applications that we see the KARNO Generator being a great fit.
Unidentified Analyst: Got it. Appreciate it. And just a last really quick and easy one, if I could. I just wanted to make sure I have this right. You’re not expecting to deliver any of the 30 trucks in the order book or hybrid trucks going forward. Is that correct?
Thomas Healy: Yeah. Yeah. That’s correct. So we won’t generate any more revenue from the powertrain business from selling average systems or the production trucks we talked about, that business is being wound down.
Unidentified Analyst: Got you. Sounds good. Thanks for taking our questions. I will pass it on.
Operator: Your next question comes from the line of Shang Kai [ph] from UBS. Your line is open.
Unidentified Analyst : Hi, guys. Thanks for taking my questions. So just one very quick question. What will be your sales outlook for KARNO in 2025?
Thomas Healy: So sales of the KARNO Generator in 2025, we’ll come back with more information on that in the first half of next year. At this stage, we’ve given some directional numbers of a couple of million in revenue next year from the KARNO expected in the second half of next year. But as mentioned, we’re just starting this transition now. Obviously, it was just announced today. And so we’ll be coming back with more granularity on future projections.
Jon Panzer: Yeah. Just to add to that, so as Thomas mentioned, the units next year are deployments with initial real customers are going to use them for — that will provide power benefits. We’ll still be doing R&D at the time, but you can imagine after that, we’ll start ramping up those deployments. And as Thomas mentioned, we’ll have a little bit better visibility as we make this strategic shift and kind of reevaluate as we’re shifting resources over from powertrain to KARNO, what that looks like. But clearly, we’re just going to be ramping up from what we expect deliveries to be next year. That will be a good starting point for continued growth.
Unidentified Analyst: Thank you. That’s helpful.
Operator: And this concludes the question-and-answer portion of today’s call. At this time, I would like to turn the conference back over to Hyliion’s CEO, Thomas Healy, for some final closing remarks.
Thomas Healy: Well, thank you, everyone, for joining today’s call. Obviously, a lot of news shared on today’s earnings call around the discontinuation of our powertrain business, putting that technology on the shelf, preserving it for a potential later use in the pivot to focusing on the KARNO Generator for our go-forward strategy for the time being. We do believe that this is the right shift for the company, for stakeholders and shareholders, and we’re excited to go execute on this path forward and look to share this exciting story as we continue on with our shareholder base. So thank you for joining today and more to come in the quarters ahead.
Operator: Ladies and gentlemen, this does conclude today’s conference call. You may all disconnect, and have a wonderful day.
