Plug Power, Inc.

Greetings and welcome to the Plug Power first quarter 2024 earnings call. At this time, all participants are in a listen-only mode. The 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 Meryl Fritz, Marketing Communications Manager. Thank you, Meryl. You may begin.

Thank you. Welcome to the Plug Power Q1 earnings call. This call will include forward-looking statements. These forward-looking statements include, among others, statements of expectations, beliefs, future plans and strategies, anticipated results from operations and developments, and other matters that are not historical facts. We intend these forward-looking statements to be covered by the safe harbor provisions 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 to not 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 the 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 or performance to differ materially from those 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 on Form 10-K for the fiscal year ending December 31, 2023, subsequent quarterly reports on Form 10-Q, and other reports we file from time to time with the Securities and Exchange Commission. These forward-looking statements speak only of day in which these 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, Merle, and good morning, everyone, and thank you for joining us today. This quarter has been pivotal for Plug as we continue to execute on our mission to drive the green hydrogen economy we are focused intensely on enhancing our cash management strategies and accelerating sales growth. These efforts are crucial as we navigate through the recalibrations necessary for long-term sustainable growth. Our strategic decisions this quarter are designed to solidify our leadership in the green hydrogen economy. We've made significant strides in scaling up our operations. Our hydrogen generation network particularly has seen substantial growth. The production facilities in Georgia, Tennessee are currently performing at full capacity, and we're eagerly anticipating the completion of our new plant in Louisiana. This addition will not only boost our production capacity by 15 tons per day, but also significantly reduce our dependency on third-party hydrogen suppliers. Building on this momentum, we're planning the development of up to six additional hydrogen plants across the United States. This expansion is critical for meeting the demand for green hydrogen as industry and transport sectors seek sustainable energy solutions. The strategic placements of these plants will help mitigate logistical challenges reducing the cost of hydrogen delivery, and enhancing our competitive edge in the market. PLUG continues to advance the pending loan guarantee from the Department of Energy and awaits the conditional commitment approval announcement. This program is expected to bolster the build-out of PLUG's liquid hydrogen facilities throughout the United States. Commensurately, the company has started a process with advisors to complement our anticipated DOE projects with project equity investors and project finance partners to finance the build-out of the plants. Our strategy expanding partnerships and securing new deals has continued to bear fruit this quarter. The extension of our partnership with Uline and securing a substantial deal with the top U.S. automotive manufacturer are a testament to our robust business model and our ability to deliver comprehensive hydrogen solutions that meet diverse customers' needs. These partnerships not only demonstrate our market leadership, but also reinforces the trust that major industrial players place in plug to support their transition to sustainable energy practices. In Europe, Our significant expansion efforts are highlighted by the commissioning of 20 PEM electrolyzer systems at sites throughout the continent, representing the largest build-out of its kind in the Western world. This is a key part of our strategy to meet the rapidly growing demand for our products globally. A pivotal component of our strategy for electrolyzers is the basic engineering and design package which currently encompasses projects totaling approximately 4.5 gigawatts. These BDP contracts are just not a testament to our technology and market leadership. They represent potential future sales that could be transformative for Plug. By facilitating our customers' journey to final investment decisions, these packages can significantly shorten the sales cycle and enhance our ability to lock in substantial long-term contracts. As we continue to advance our technology and increase our project capabilities, Plug is enhancing its footprint not just in the U.S., but globally. This strategic expansion aligns perfectly with our mission to lead in the green hydrogen economy, ensuring that we remain at the forefront at delivering innovative and sustainable energy solutions. Look, despite our successes, We have faced challenges, particularly this quarter with equipment margins due to strategic inventory reductions and this quarter of product sales. In response, we've implemented a series of restructuring measures aimed at reducing costs and improving efficiencies. This includes headcount reductions and operational considerations, which are difficult but necessary decisions to enhance our long-term sustainability and profitability. Looking to the future, Plug is poised for significant growth. Foundations we're building today through operational excellence, strategic expansion, and a real focus on robust financial health are designed to solidify our leadership in the hydrogen market. As the world continues to turn to sustainable solutions, Plug will be ready to meet and exceed the demands of the growing industry. To conclude, we remain deeply committed to our strategic goals and are optimistic about the opportunities ahead. Now, Paul, Sanjay, and I are ready to take your questions and provide further insights into our journey.