Andrew Percoco: So I think it’s fair to say, Paul, even without the IRA, our costs go down to one third of what they are today.
Paul Middleton: Yes. And as most of you guys know, we started our green hydrogen endeavor even before the IRA already got passed, because it is so incredibly economically impactful and accretive to us to produce this at such a much substantially lower cost. So overall, we’re on the right path and right footing and this will be impactful, and this is going to be incrementally accretive and additive to the overall equation.
Operator: Our next question comes from Abhi Sinha with Northland Capital.
Abhi Sinha: Just one quick one. So overall, I keep getting this — a lot of news here from like whether it’s different projects in Australia, Europe and whatnot. So I mean, I feel like we have a lot of incremental additive value to the existing guidance here. But of course, there’s no change in guidance, not like 2023 but even for longer term. So I’m just wondering at least if you look at 2024 or 2025, what projects you could point to that if materialized could really tip the scale on the higher end of the guidance or exceed the guidance? I mean what should be hang on…
Andy Marsh: No, I’ve been doing this for 15 years, and I did pretty good — I’m pretty good on revenue over the years. And I think we’re going to stick by the guidance we provided already and if something really good happens and we’re certainly engaged around the world. And Sanjay talked about the sales funnel for electrolyzers, which are real. We’re driving every day to make the number bigger. But what we’ve said in the past for next year and what we’ve said for 2025, I think we’ll just stand behind that today. Good try though.
Operator: Our next question comes from Tom Curran with Seaport Research Partners.
Tom Curran: Just two quick ones. First, Andy, Paul, just what are some of the main factors that have obstructed the services division’s ability to get closer to achieving a breakeven gross margin by this point? And how has each of those challenges negatively surprised you, either, just in terms of its nature, the fact that you didn’t see it coming or maybe it’s severity? And then given that what really undergird your confidence from here that services will nevertheless be on track for your new profitability improvement time frame?
Andy Marsh: So Tom, let me tell you why — when I look at the challenge and the challenge really comes down to — I’m going to give you the technical challenge and then I’m going to give you the — our view of why we believe we have good solutions. The technical challenge is really associated with the customers and this is good or taking more power out of our units than they originally did. And that means we need to put more power into the box to be successful. Most of this is involved with material handling. The second item is fuel cells don’t like to start and stop all the time. And we understand and have demonstrated that we know how to manage that, which should be another differential advantage long term for Plug. We have about five or six sites that we’ve — now I’m going to talk about the old fleet and the new fleet.
