Plug Power Inc. (NASDAQ:PLUG) Q2 2023 Earnings Call Transcript

Page 2 of 17

Paul Middleton: So there’s a couple of things. Well, first and foremost, the good news is we’ve come together, as Andy alluded in his comments, with an outline of the term sheet that we think will work for us and that they can get passed. So that’s a big hurdle. And they’re in the final — now they’re off to the races doing the final due diligence around market studies and technical studies and things that they just got to kind of finish that process. And then once we get through that, we’ll — there’s a little bit of more polishing to finalize the term sheet in a format that they can submit through their process that they’ve got to go through the government agencies to get approved. So at this point, our best guess is that we would have something approved and be able to announce something hopefully, mid-November to early December, we’re all — they are equally motivated to get it done fast as we possibly can.

So we’ve got weekly meetings and efforts to try and push out those final hurdles. So we’ll see how it plays but that’s kind of the timeline and where we’re at in that process.

Operator: Our next question comes from Eric Stine with Craig-Hallum.

Eric Stine: So I have not — we haven’t been able to digest the entire letter here. So I might come back to some questions from your Investor Day. So you had talked about $4 billion in overall electrolyzer opportunities that you saw over the next 12 months. I’m curious whether that still holds, whether that’s accelerated and maybe what area is the market where you are seeing the most traction with that business?

Andy Marsh: Eric, I’m going to turn it over to Sanjay.

Sanjay Shrestha: So since we last talked about that, the number is actually, if anything, gone up a bit. We are actually tracking about 7.5 gigawatt of opportunity as much as $5 billion of potential revenue opportunity for us on that business. And by the way, Eric, one of the things we’ve done is rather than talk about just the big funnel, we have actually identified project by project, right? And these are the projects we believe could actually get to FID, final investment decision, over the next 18 months. Now look, some of them might not materialize, some of them move faster than expected, but that’s what the funnel sits at right now. And the mix is really — when you really think about sort of the mix, there’s a lot of opportunity here in the US, actually quite sizable projects.

We’re actually very, very far along with some of the sizable opportunity here. There is actually — and you guys all saw that we announced this pretty big opportunity with a major oil and gas company in Europe, which we had talked about on our last earnings call, and there’s lots of those opportunities in Europe as well as, in broadly speaking, in the Asia Pacific market as well. So again, we are certainly looking to close several more large electrolyzer deals here before the year is over, and that’s where the funnel sits right now.

Eric Stine: And maybe Sanjay probably this is yours as well. I know a big topic a few months back was in terms of green hydrogen. And although, you’ve got very extensive plans, whether that actually is going to end up being enough and also kind of the open question of how much do you keep for your customers and how much you keep open that you might sell in the market. So maybe some updated thoughts on that would be great.

Page 2 of 17