Plug Power, Inc.

Greetings and welcome to the Plug Power Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Teal Hoyos, Director of Marketing Communications. Thank you, Teal. You may begin.

Thank you. Welcome to the 2023 Third Quarter Earnings Call. This call will include forward-looking statements. These forward-looking statements contain projections of future results of operations or of our financial position or other forward-looking information. We intend these forward-looking statements to be covered by the Safe Harbor provision for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We believe that it is important to communicate our future expectations to investors. However, investors are cautioned not to unduly rely on forward-looking statements and such statements should not be read or understood as a guarantee of future performance or results. Such statements are based upon current expectations, estimates, forecasts, and projections, as well as the current beliefs and assumptions of management and are subject to significant risks and uncertainties that could cause actual results of performance to differ materially from those as discussed as a result of various factors. including but not limited to the risks and uncertainties discussed under item 1a risk factors in our annual report or form 10k for the fiscal year ended december 31st 2022 quarter the reports on form 10q for the quarters ending march 31st 2023 in june 30th 2023 and other reports we file from time to time with the sec These forward-looking statements speak only of the day in which the statements are made, and we do not undertake or intend to update any forward-looking statements after this call or as a result of new information. At this point, I would like to turn the call over to Plug Power's CEO, Andy Marsh.

Thank you, Teal, and thank you for joining the third quarter conference call. This is a difficult quarter, driven primarily by the availability of hydrogen. Over the past several months, there has been enormous challenges associated with the availability of hydrogen, primarily due to down plants, including our Tennessee facility, and temporary plant outages across the entire hydrogen network. For many days, demand outstripped supply. For example, many of the California fueling stations have been without fuel, have had limited fuel on a regular basis, over the past several months. Additionally, the price of these stations for hydrogen has been over $30 per kilogram at the pump, about twice the normal price. To service our customers, Plug has been moving hydrogen from the West Coast to the East Coast. This has been a yeoman's effort, and it's been accomplished while reducing the cost of hydrogen compared to the second quarter. Good news is the network is now stabilized, and many of the plant outages have subsided, plus additional capacity will be coming online. We expect our Tennessee plant will be back online producing hydrogen by the end of the year. This plant, when fully operational, provides about 20% of our production needs. One of our major suppliers is upgrading one of their facilities to allow the plant to operate at full main plate capacity in the coming months. The plant output has been producing between 0% to 25% of capacity. We're continuing to see progress at our Georgia plant, and we're finishing the last step in the construction process, commissioning the liquefier. We expect the plant to be online by year end. A few other points. Stress Hydrogen Network also caused a delay at deployment of some of our North American material handling customers. These sites will be commissioned as the hydrogen issue is resolved. It's just a timing issue. Many of those facilities, actually, the fuel cells and hydrogen plant or infrastructure are already available. We believe, though, that this experience reaffirms the criticality of building our nationwide hydrogen network to support our fuel cell business, as well as the financial benefits that this network could accrue to the company for both that business and the additional applications that are beginning to be realized. Furthermore, this experience underscores the wisdom of our business diversification model. In the fourth quarter, we anticipate that revenue from our new ventures will surpass revenue from our traditional business for the first time as our electrolyzers and cryogenic businesses continue to grow. Finally, I'd just like to reflect on a conversation I had yesterday morning with a European customer, supplier, and partner. He just toured our facility and reminded me that no one has built hydrogen infrastructure on the scale we have. No one has our product set. No one has technical talent. No one has our customer relationships. And no one has our real-life experiences. It remains our belief, and his, that as the market for hydrogen fuel cells grows, no one is in a better position than PLUG to take advantage of this opportunity. This is just a bump on the road. Paul, Sanjay, and I are now available for questions.