Hyzon Motors Inc. (NASDAQ:HYZN) Q1 2023 Earnings Call Transcript

In Europe, we have considerable inventory. Given the reset that we’re — we have set up for us and available to us. So certainly for the trucks that we’re looking at in the build schedule towards the end of ’23, there’s — there could be still some supply chain risks that could still be some potential risk in some delivery schedule timing on some of that. But given where we are in the year and where we are with our sourcing, we’re generally comfortable with the uncomfort that we always have in the industry of supply chain risk.

Michael Shlisky: Okay. Maybe one last one for me. Maybe comment both more broadly and more specifically on the hydrogen fueling infrastructure, both for your customers and the broader US? I guess more immediately, does performance food and your other early customers, how confident are you that they’re going to have to supply the — supply of hydrogen that they need to make their initial trucks run? Have you gotten a plan from them? And then secondly, I mean you did mention Raven and a couple other groups that you’re working with. But could you speak more broadly on how you feel about the infrastructure maybe in the US and in Europe being ready for your eventual ramp up here?

Parker Meeks: That’s a great question. And again, one that I give my background I’d love to talk about for a very long time, but generally it varies by market. So let’s start actually with Europe and Australia. Europe and Australia, we have channel partners effectively that are focused on delivering fuel for fleets largely. So when you look at Hylane or Hiringa. They are — in the case of Hiringa New Zealand who’s now looking at expanding into Australia. They are developing their fuelling market and stations which we’re anticipating coming online to support our fleets. In Europe, our channel partners work with their end customers directly to develop that fuel and the customers we’re engaging with, they have plans through the channel partners to put that in place.

For example, you’ve announced a significant hydrogen production site in Austria that is going to fuel the trucks we deliver through them to a start, right? So that is a very channel partner led strategy, which is great for us to work through that. The US is where we have more of the direct hydrogen investment rights and access to our partners that we’ve announced with additional dispensing options, largely that we have not announced the range from mobile fuel or access for our customers through the third-party partners to behind the fence fueling solutions to public station access. We are focused on California and specifically Southern California as a great market because you have the three existing heavy duty stations there, which the — what we believe from our customers, the early fleets are going to largely be back to base.

The majority of these fleets fuel behind their fence today. A lot of them have, for instance, a diesel provider come behind their fence and they direct fill or wet hose is the colloquial term, their trucks directly overnight. So when that’s your model, you want that going forward and you also want multiple backup options for supply. So we are confident and working with our anchor customers in the US for their operations in California that we have through our partners mobile fueling options that we have providers who can come and do the small scale temporary installed fueling options to then scale to more permanent solutions and the access to public stations when they’re available for backup supply basically. And what’s great for Hyzon is a lot of these customers don’t like don’t want to bother with sourcing fuel directly themselves, not all of our customers, but a lot of them, because they don’t do that today.