James West: And then do you guys see a scenario playing out in the EU or Europe broadly that’s similar? I mean they have the green industrial plan, which is kind of the counter to the IRA, but there’s not a ton of detail out there. But do you see something similar to what the IRA is doing for — there could be something similar to what the IRA is doing for green hydrogen in the US, it’s kind of supercharging the market?
Andy Marsh: And we do, James. And when we look at it, and I’m going to say on paper, it appears to us the dollars that have been allocated in Europe are larger than the dollars allocated in the US. The advantage US has is the fact that it’s much more of a public markets activity so that since it’s based on tax credit, it’s easier to navigate. But we do see in Europe that the overall dollars between now and 2030 could exceed the US. And look, that’s why we have partners like ACCIONA, that’s why we partner very closely with the Port of Antwerp. You really need the right — for a company like Plug, you really need the right European partners to really leverage that expansion.
Operator: Our next question comes from Manav Gupta with UBS.
Manav Gupta: So Sanjay kind of alluded to this, but refining is a massive market opportunity as it relates to replacing gray hydrogen. You actually announced an order in Europe, one of the bigger ones to replace gray hydrogen with green hydrogen. Do you see this segment’s end market growing? And someday, even US refiners looking to source green hydrogen and replace their gray hydrogen. I’m not sure if you saw yesterday, but there’s a public independent refiner who basically on their earnings call said are looking for electrolyzers to make green hydrogen to support our SAP. So as an end market for US refining or Europe refining, how you’re thinking about that?
Andy Marsh: I’m going to let Sanjay take that…
Sanjay Shrestha: So a couple of comments, Manuv, right? Short answer is yes. We certainly see that as a pretty meaningful opportunity. It absolutely makes a lot of sense. And frankly, this is where production tax credit really play a major role to make it a level playing field as Andy was talking about it from a price competitive standpoint versus gray hydrogen and green hydrogen in some of these markets, right, where the economics start to make sense, pricing start to make sense. Economic value proposition for the customer that are looking to be decarbonized makes a lot of sense. And as you know, from the industrial opportunity perspective, refining industry is actually a very large user of gray hydrogen and existing opportunity today.
We do see this as a major electrolyzer sales opportunity, number one. Second, it could even lead into something like a build-own-operate model for us. And we do have several of those discussions going on, not just in Europe but also in the US market. Hard to say exactly when they materialize and end up becoming a concrete opportunity, but we have multiple of those opportunities. And these are gigawatts and gigawatts of electrolyzed that that industry is going to need in terms of really going from gray to green hydrogen. And one thing that’s actually somewhat very unique for a Plug, if you would, right, and this is what we talked about as our enterprise sales opportunity and really trying to serve to the customer’s need. If they want to buy hydrogen, we can certainly approach it as a build-own-operate model where we own the electrolyzer, supply them hydrogen behind the fence, if he would, we can do that.
