Sanjay Shrestha: No. I think, Andy, you sort of summarized it pretty well. But the only thing I might add here is, I think we are obviously been working on multiple large-scale electrolyzer opportunity here in the U.S. And as the guidance becomes clear and as we hear more about that, I think some of this opportunity that we’ve been working on start to unlock. And even on the electrolyzer side, even before some of this PTC guidance we have talked about working on three mega deals, we’ve already announced 100-megawatt in Europe, we’ve already announced another 280-megawatt in Europe, and we have talked about being a preferred supplier for a 550-megawatt opportunity in Australia. With this PTC, we certainly see meaningful growth for electrolyzer business, as you said, Andy, especially in 2025 and 2026 time frame, but there will be a very meaningful growth as well in 2024, given the mix of the business, diversity of the market and then existing backlog.
Andrew Marsh: I mean there are more products that need hydrogen coming online. There are folks who are going to green hydrogen to meet their corporate goals, regardless of the status of the PTC. So I think the PTC middle of the road decision will be really beneficial for Plug. Thanks, George.
George Gianarikas: Thank you.
Operator: Thank you. [Operator Instructions] Our next question is from Eric Stine with Craig-Hallum. Please proceed with your question.
Eric Stine: Thanks for taking the questions.
Andrew Marsh: Hi, Eric.
George Gianarikas: So I’ve been jumping around on calls today, so I hope that I don’t ask something that’s already been asked. I did hear the end of the last one. I’ll just stick with the IRA just for a second. Hearing some talk of regionality in terms of where power needs to be sourced from, just curious if you could expand on that a little bit? And what would you see that doing for your business?
Andrew Marsh: Yeah. So — and I think, Eric, if regionality is really tight at the balancing authorities and there’s 69 balancing authorities, I think it drives most of the business activity into ERCOT. I don’t think it’s going to end up there. When we think about middle-of-the-road solution that would work for Plug and we think work for most people in the industry, that would be — the ISO regions would we think work. There’s markets which work there. You can — the regions are big enough that the additionality issue should be much more minor. Ultimately, you could phase in time matching and it probably would work, probably what’s best for the nation and what’s probably best for the U.S. leadership in hydrogen, it would be having just three regions.
That would also make sure that most of the hydrogen hubs could be successful. That’s — I think from a Plug perspective, it probably will end up where we’re operating more and probably — quite honestly, probably many of our customers. I think from a nationwide rollout perspective, more regions — many regions is not helpful. So the quicker the region, the quicker the deployments will happen, the better it will be for our business. But if it’s the ISO regions, we’ll be in good shape.
Eric Stine: Okay. That’s helpful color. I guess we’ll stay tuned on that. And then maybe — so it sounds like you did for 2023 provide a little color around, I think, the previous outlook had been $1.2 billion. And if there is some $50 million or so variability in that number, I’m curious if you discussed any of the out-year targets? I mean I know ’24 in the past, you’d had a $2 billion-plus revenue target. At the symposium, you had ’27, you had 2030. So just curious, I mean, are you — did you address that? Are you making any changes or is that something that’s more for the January update?
Andrew Marsh: Paul explained, Eric, the people the January update call. We did not make any changes.
Eric Stine: Didn’t make changes. Okay. Thank you.
Operator: Thank you. Our next question comes from the line of Andrew Percoco with Morgan Stanley. Please proceed with your question.
Andrew Percoco: Good evening. Thanks for taking the question. Heym, Andy. How are you? I did want to just come back to the balance sheet and financing line of questioning because I do think it’s important here. So in the quarter, it looks like you burned $400 million of free cash flow, which leaves you with about $550 million of unrestricted cash and available-for-sale securities on the balance sheet. And Paul, I know you laid out DOE timing late this year, but it sounds like that project milestone based, and you also announced the Fortescue potential financing at the project level, but it still sounds like that’s early stages. So it’s leading me to think that you’ll probably need to do something at the parent level to manage working capital within the next few weeks.
One, is that correct? Two, are you still confident that you can do it with debt? Is there a potential need for a convert or equity here? And three, can you just give us a sense for size in terms of what you’ll need to manage working capital and the profitability drag over the next few quarters? Thank you
Andrew Marsh: Paul, do you want to take that one?
Paul Middleton: Sure. So a couple of things. Fortunately, we’re kind of in this period where we’ve spent largely what we need to for Georgia to turn that on. We’ve also — the balance for that’s left for the Louisiana plant is not all in context, is not very big. So — and we’re — Texas is really kind of more middle of the year and on into the back of the year when the big chunks of money gets spent. So I think we have a little bit of latitude on CapEx this quarter, next quarter in that regard. And so — and then on top of that, given the scale of sales that we have this quarter, that obviously, as we convert that into cash, that helps. And then thirdly, we’re laser-focused on reducing our inventory levels. We’ve built that up substantially to kind of help launch these broad platforms, but there’s a substantial amount of capacity there that we can tap into that we’ll see.
