FuelCell Energy, Inc.

Good morning. My name is Julianne, and I will be your conference operator today. At this time, I would like to welcome everyone to Fuel Cell Energy's second quarter 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you require operator assistance at any time, please press star followed by zero. Tom Gelson, Senior Vice President, Finance and Investor Relations, you may begin your conference.

Good morning, everyone, and thank you for joining us on the call today. As a reminder, this call is being recorded. This morning, Fuel Cell Energy released our financial results for the second quarter of fiscal year 2022. And our earnings press release and our quarterly report on form 10Q are available in the investor section on our website at www.fuelcellenergy.com. Consistent with our practice, in addition to this call and our earnings press release, we have posted a slide presentation on our website. This webcast is being recorded and will be available for replay on our website approximately two hours after we conclude the call. Before we begin, please note that some of the information that you will hear or be provided with today will consist of forward-looking statements within the meaning of the Securities Exchange Act of 1934. Shut statements express our expectations, beliefs, and intentions regarding the future and include, without limitation, statements with respect to our anticipated financial results, our plans and expectations regarding the continuing development, commercialization, and financing of our fuel cell technology, and our business plans and strategies. Our actual future results could differ materially from those described in or implied by such forward-looking statements because of a number of risks and uncertainties. More information regarding such risks and uncertainties is available in the Safe Harbor Statement in the slide presentation and in our filings with the Securities and Exchange Commission particularly the risk factor section of our most recently filed annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q. During the course of this call, we will be discussing certain non-GAAP financial measures, and we will refer you to our website and to our earnings press release and the appendix of the slide presentation for the reconciliation of those measures to GAAP financial measures. Our earnings press release and a copy of today's webcast presentation or available on our website at fuelcellenergy.com under Investors. For our call today, I am joined by Jason Few, Fuel Cell Energy's President and Chief Executive Officer, and Mike Bishop, our Executive Vice President and Chief Financial Officer and Treasurer. Following our prepared remarks, we will be available to take your questions and be joined by other members of the leadership team. I would like to now hand the call over to Jason for opening remarks. Jason?

Thank you, Tom. And good morning, everyone. Thank you for joining us on our call today. In the second quarter, we made continued progress in executing our powerhouse business strategy. Before I get into the results for the quarter, I always like to provide a brief overview of the company. As shown on slide three, in summary, what we do is decarbonize power and produce hydrogen. We do this as a leader in manufacturing stationary fuel cell platforms, that leverage our proprietary technologies. We operate across three continents, and as we previously stated, we are focused on targeting new opportunities in new markets across the globe. In fact, just this week, we announced a collaboration opportunity in North Africa. Our manufacturing locations are currently located in the United States, Canada, and Germany, which we believe positions fuel cell energy for local content requirements and efficient distribution, which is increasingly important given global supply chain constraints and clogged shipping ways. We have 95 platforms in commercial operation, which we believe demonstrate the commercial feasibility of our products. In fiscal year 2021, our revenue of nearly $70 million came from three revenue categories, service and licenses, advanced technologies, and generation. all of which represent diversified sources of recurring revenue under multi-year contracts. Over the past two fiscal years, we have had no revenue from product sales. However, product sales returned to our revenue mix in the first quarter of this year with an initial order for 12 replacement modules to service POSCO Energy's existing installations in Korea, six of which were delivered in the first quarter of this year. We expect to deliver additional modules from the initial order in the third quarter of this year, and pursuant to the terms of the settlement agreement with POSCO Energy, we expect Korea Fuel Cell to place a non-cancellable order for eight additional modules by June 30, 2022. We continue to target delivery of all 20 modules by the end of fiscal year 2022. With the Asian market once again open to us as a result of that agreement, we are optimistic that in the future we will see revenues from new product sales in Korea in addition to other Asian markets, as well as select countries in Europe, the Middle East, Africa, Latin America, and North America where we have made it a priority to target product sales. On slide four, you will see our purpose. As a company, we are committed to our purpose of enabling a world empowered by clean energy. Today and in the future, every industry and company will be impacted by the transition to net zero, and we believe our technology is well positioned. The world will always need reliable power created in an environmentally responsible manner. Therefore, when it comes to what we do, We believe fuel cell energy is uniquely positioned to assist customers on a safe, secure, and practical path to carbon zero. We believe we can do this by decarbonizing power and producing hydrogen. We believe we have the only technology that can capture CO2 while producing power and hydrogen and produce hydrogen, power, and water simultaneously. Bioshock Energy's technologies provide localized solutions for clean energy that deliver real-time benefits to the communities in which our platforms operate while reducing Scope 1 and 2 emissions. We do this in a manner which supports high standards of living and economic growth while protecting the environment, minimizing land use when compared to wind and solar projects, avoiding costly transmission build-outs, and adapting to new resource challenges. This purpose drives our strategic focus and the work we are passionate about doing. Now, I will move on to the key messages for the second quarter beginning on slide five. We continue to make steady progress advancing our strategic agenda, executing against our backlog and working toward commercialization of new technologies. At the 7.4 megawatt project at the U.S. Navy submarine base in Groton, Connecticut, we have completed the commissioning process of one of the two platforms installed on site. The second platform requires additional component work, and when that's complete, we will then resume the final stage of commissioning. We expect the project to be commercially operational this summer, at which time it will be added to our generation portfolio. When fully operational, the platform's incorporation into the microgrid is expected to demonstrate the capacity of fuel cell energy's platforms to increase grid stability and resilience. It will support the U.S. military's effort to fortify its base energy supply while demonstrating the U.S. Navy's commitment to clean, reliable power with microgrid capabilities. Another key project is the 2.3 megawatt tri-generation platform we are constructing for Toyota at the Port of Long Beach that will produce electricity, hydrogen, and water. Fuel cell platform equipment has been built and delivered to the site, and civil construction work has significantly advanced. We are nearing the completion of the construction phase of the project, with the remaining project activity anticipated to be completed in late 2022 or early 2023. As a result, while we have made substantial progress, we do anticipate that commercial operations will be delayed beyond June 30, 2022, and we will need to request and received from Toyota an extension to the hydrogen power purchase agreement. When the project achieves commercial operations, this energy platform will deliver carbon neutral electricity, green hydrogen, and water. In a region experiencing extreme drought conditions, and we expect our project to improve the air quality in Long Beach, California, an area hampered by poor air quality. The hydrogen-produced bar platform will provide the fuel needed to power the transportation sector in both passenger vehicles and Class 8 heavy-duty trucks. Once completed, this project is expected to be a real-world example of how distributed green hydrogen can be deployed to repower and refuel the transportation sector, including maritime, aviation, rail, busing, and more. During the quarter, we continue to invest capital in our internal R&D, much of which is focused on driving commercialization of our patented solid oxide platform to deliver power generation, electrolysis, and energy storage. Additionally, we are making progress in optimizing capacity for the CarbonNet platform with the goal of achieving 100 megawatts of annualized integrated onsite manufacturing and conditioning capacity. the latter being a key recent development that is expected to lower costs while increasing throughput. Second, we are also continuing to focus on the advancement of carbon capture and carbon separation technology toward commercialization. Following the achievement of our critical technical milestone associated with our differentiated carbon capture application under the joint development agreement with ExxonMobil Technology and Engineering Company, or M-TECH, We entered into an extension of our collaborative development agreement, enabling our companies to continue working to advance fuel cell carbon capture and storage technology. Additionally, we are also conducting a joint market study to define application opportunities and commercialization strategies and identify partners for potential pilot or demonstration projects as we pursue carbon capture across a broad landscape of industrial applications. During our recent Investor Day presentation and our 8K filed with the SEC on March 21, 2022, we highlighted that we believe the combined cumulative market for carbon capture leveraging our technology is approximately $1 trillion through 2030. We are also making progress with our first-generation carbon capture and storage technologies. This includes our work in the United Kingdom with Drax, one of the largest biomass power plants in the world, to capture carbon and Canadian National Resource Limited, a consortium of oil sand companies and some supporting Canadian government entities. My third key message is that we are continuing to build our path forward in Asia. We continue to build our commercial organization in Korea in support of our efforts to build new opportunities in the broader Asian market. We believe that in Korea, fuel cell energy's differentiated technology is a highly desirable choice for utility-scale projects given its high-quality thermal attributes that support the district heating requirements in the country. The Korean government previously announced an aggressive hydrogen economy roadmap which should create exciting opportunities in this market. In addition, Japan has also announced goals to expand hydrogen usage cost and supply targets. We look forward to bringing our unique distributed generation and distributed hydrogen platforms to the Asian market as Asia looks to lead in the hydrogen transition. Additionally, recall that last quarter we reached a settlement agreement with POSCO Energy, which called for 20 replacement modules to be ordered during fiscal year 2022 to service its existing installed base. Six modules were delivered last quarter, and while none were delivered this quarter, We continue to target delivery of all 20 models by the end of fiscal year 2022. And now I will turn it over to Mike to discuss the quarter financial results in more detail. Mike?