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

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And Jeff, one of the key things here, right, I do want to stress this one particular point is, obviously, look and I’m just going to take the point that’s an elephant in the room, if you would. We clearly recognize that we’ve been three to six months behind than what we originally wanted it to be. But having said that, this plant is still coming online in 12 months since we actually issued the EPC contract, number one. And number two, we also wanted to make sure this is a first of a kind integrated electrolyzer liquefier on-site stores. So there are steps we want to make sure that we’re taking from a safety standpoint, from the long term operational benefit of the plant. So long story and a quick comment, we are going to be producing liquid here in the month of August.

We’re very much looking forward to hosting you all on August 23rd and we’re essentially wrapping up the plant at this point in time.

Andy Marsh: And filling trailers…

Jeff Osborne: Look forward to being there in person. Just one quick clarification on Georgia and then a second question. Is this — you’re in the release of those 2.5 tons a day, have you run at full steam on the electrolysis side?

Sanjay Shrestha: Yes, that is correct. Jeff, we actually have filled high pressure tube trailers for third party customer many times at that site. And the way we wanted to do that, right, and this is very important for us to do, make sure that we’re running that first gas plant, optimize the gas plant, get the learnings from that gas plant. So that you can take all of that learnings from a control perspective ramp up the electrolyzer perspective, all the safety perspective when you actually are now ramping up the entire 40 megawatts of electrolyzer to support 15 tons of liquid production. And Jeff, to a point where we’ve actually initiated expansion of that 15 ton now to a 30 ton liquid plant at the site because of how we felt about what has gone so far from a 15 ton production perspective.

Andy Marsh: The electrolyzers aren’t really anything we’re really thinking much about, we know they work, absolutely.

Jeff Osborne: Just follow-up with just on the hydrogen hubs. How are you positioned for that and what do you think the timing of the awards are from the government process there?

Andy Marsh: Jeff, I think the hydrogen hub and the IRA are really closely connected. There was a letter which was released by the State of New York, the State of Massachusetts, State of Connecticut, State of Maine, that to make this a nationwide hydrogen hub, the IRA regulations need to be — for the PTC needs to be based in over a long period of time. I spoke to the New York Governor about that actually just yesterday. And it is — I think we see more activity come the fourth quarter for some initial grants. But for this to become a nationwide network, it’s not just the hubs, it’s the hubs coupled with the IRA. And this is something that if you read the letter of the State of New York and the other states put in the treasury really makes clear that if they really limit it the IRA regulations, which I don’t think will be the case, that the impact will be much more modest, because the $9 billion, quite honestly, is a good deal of money.

But it’s not really what’s going to drive a hydrogen economy. It’s kind of like, I look at $50 billion for chip facilities seem like a lot of money, but you really need large support from other elements to make that successful. The same thing holds true for hydrogen. We expect some announcements in the fourth quarter, but it will be a little bit of dollars and more and more will start flowing out.

Operator: Our next question comes from Ameet Thakker with BMO Capital.

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