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

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We think it’s the perfect product. I always like to say to our team, this is generation number two at the moment, and it’s quite a product. I expect that this will go through learning curve after learning curve and there will be generation after generation. But that demand is real and that is a real headache to the development of EVs, it’s a real head — which we think is important for climate change but it is a real, real problem. It’s also this connection issue is why the debate going on with additionality really doesn’t make any sense to us, and that it is something that we know that the White House and others know, it is a huge problem. When you sit with center Manchin, we talk a lot about interconnect and permitting and what it means for electric vehicles, as well as what it means for how you meet the 2050 US climate goals.

Colin Rusch: And then as you guys continue to scale and look at shorter time frames on some of these projects, can you talk a little bit about the evolution of your supply chain and their willingness to invest in incremental capacity to support your growth?

Andy Marsh: I spent — that’s actually why I spent my whole afternoon on. And we’ve announced, obviously, one critical supplier, Jonathan Matthew, who’s moving forward with us. We have others in the electrolyzer business. If you think about — let’s take an electrolyzer, what do I worry about? I worry about items like — I worry about rectifiers and making sure suppliers are well positioned to support our own internal needs, I worry about control panels, I worry about fabricators. And for all those three items, I think, Plug — and I think we should probably publicly go more about who those partners are, probably can’t do it on this call, we need to kind of clear with them. But we have been developing relationships and we do see people making investments.

And I think what you’ll see is that we’ve been trying to think through a campus approach at facilities like our Rochester facilities leveraging our government relations to really help bring companies into places like New York and West Virginia to support our future needs.

Operator: Our next question comes from Jeff Osborne with TD Cowen.

Jeff Osborne: Just had a couple of questions on the Georgia facility, I was wondering if you can give us an update on how their commissioning process is going? I seem to recall that I was expecting that to be up and running, I thought in early August or July, and now it still seems like you’re making gaseous hydrogen. So I was just curious, have you actually liquefied anything at this point or run it at full seam, is there any comments you can give us on utilization or capacity factors on how it’s performing?

Sanjay Shrestha: So again, I think we’re fairly — look, we feel very confident that we’re going to be producing liquid in Q3. Right now, we’re essentially going through ramping up electrolyzer, right? We’ve actually tried to electrolyze this one, you know that we’ve been producing gaseous hydrogen there without gaseous hydrogen plant. We’re in the process of actually ramping up our liquefiers, in the process of cooling down the liquefaction trains. So again, that’s why we’re hosting our Analyst Day there on August 23rd, right, so that we can actually show to you all exactly what’s happening there and what’s going on. So at the moment here, are we producing liquid? We’re not producing liquid today, but we are essentially ramping up the electrolyzer on path to be able to produce that liquid.

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