So all of this, combined with the progress we have on our leading 200kW fuel cell system, SOP, which we’re still on track for SOP to 2024, in fact, we have less than $5 million of CapEx left to that SOP to achieve a starting production that we’re estimating at 700 units per year on three shifts. We truly believe that this marks a very important symbolic milestone with this first truck with all of that momentum behind us.
Steven Fox: Great, that’s helpful. And then just on the free cash flow burn, it actually sounds like on an organic basis, if we take out the SEC payment, you’re making more progress than the headline number will give credit for the ‘24 guidance staying the same. Can you talk about that progress a little bit more into next year and maybe the flexibility in the plan, whether it’s for faster deliveries or more trials, et cetera, how much sort of wiggle room do you have on that number? Thanks.
Parker Meeks: Absolutely. Steve, you want to take that?
Steve Weiland : Yes, sure. Thanks. Happy to address that question. I think you make a good observation in the prior cash burn guidance for ’24 was $110 million to $220 million but did not include the SEC payment. Now that does. So that’s an $8.5 million delta right there which highlights our confidence in taking our cash burn down, recurring cash burn down even below what we thought it was on that guidance that was previously made previously made. I think there’s other opportunities, there are other levers to pull. We’re not ready to discuss those yet. I think when we come back early next year, we’ll have a better view, but it does give us flexibility to make continuing strategic investments and things that move the needle over the course of next year. So we remain very focused on it and we think that gives us the flexibility we need to move through the rest of next year.
Operator: Bill Peterson with JP Morgan.
Mahima Kakani: Hi, good morning. This is Mahima Kakani on for Bill. Thanks so much for taking our questions. Maybe just to start, we’ve seen a couple of peers in the space starting to pivot away from heavy-duty deeds, just given the challenging market conditions. So can you maybe elaborate on what you’re seeing in terms of customer interest in converting non-binding orders to firm orders, once fleet trials are completed?
Parker Meeks: Thanks so much, Mahima, and we’re really excited to dig into that because when we look at the market, we see only increasing interest in specifically fuel cell technology and fuel cell trucks. You look at the application that we are focused on today, it is commercializing our leading fuel cell technology in the trucking application that has tremendous government support only increasing for zero-emission broadly and hydrogen specifically and for instance the DOE hydrogen hubs that were just awarded. Additionally, customers are seeing the expanding addressable part of their fleet that only fuel cell can deliver in a true zero-emission solution. So what I mean by that is many large fleet customers of ours have had battery electric trucks in their hands for months.
The feedback we’re getting is very consistent across most of them, particularly those that haul heavier things longer distances, even in a back-to-base call it a 200 to 250 mile route structure. The battery electric truck experience for many is one where the usable range is not what they thought it would be, particularly when hills are involved, which even in the LA basin, if you know that area, you’re going anywhere with any material distance, you’re probably climbing a hill. And additionally, the charge times and the ability to get charging infrastructure, putting 5 to 10 megawatts in some cases behind a back-to-base warehouse fence is years away for many of those fleets, along with those that need to hot seat or can’t have a truck sit for 48 hours to a charge.
So while others that are focused on battery electric truck technology may be pivoting, we are only even more excited about the market potential, the customer excitement, and we’re seeing that both in our progression to our trial program and our anticipated near-term conversion of additional fleets to contracts who have completed their trials. As I said before, our North America trial program is one example. We did have three additional large fleet trials this quarter. We have in those 10 fleets that have completed their trials this year, several who are fully progressed and months of work with us of where the trucks will go, assuming we are able to complete the commercial contract with them. And for several of them, frankly, it’s coming down to lining up the fuel solution, the fuel pricing with our partners on the fuel side.
So we look at the market with the customer excitement for fuel cell with the real world experience that we’re getting with other technologies and seeing that fuel cell needs to be a bigger part of what their zero-emission future is, along with the growing multiple layers of subsidy availability that we see particularly in the U.S., we actually see a market that’s turning to fuel cell.
Mahima Kakani: That’s really great color. Thank you so much. Maybe a second one for me. In light of some of the market opportunities that are incremental that you’ve discussed on the call. Can you maybe help us better understand the size of those opportunities and then also what would be the easiest expansion or the most synergistic sort of expansion beyond heavy-duty trucking, whether that be medium-duty, rail, or off-road, some of the different ones that were mentioned?
Parker Meeks: Absolutely. Happy to provide additional thoughts there. So when you look at Hyzon’s core, right, the core of the company is our leading fuel cell technology, and the 200kW single-stack fuel cell system, we believe, is advantaged and is quite flexible. So we are focused today the core of the company today is commercialized drayage fuel cell trucks. However, there’s multiple additional ecosystems, such as remote and stationary power, aviation, mining and rail, where we’re already shaping with leading partners with the entry for the 200kW fuel cell system as the common building block would look like when we’re ready to take that step. Some of those partners are under agreement of some kind, some are not yet. And when you take one example, like aviation, right, the entry point for aviation we believe is not planes to start, it’s ground support vehicles, right?
