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how ever big the orders I want to see they can get to cash flow positive without tapping the market with more shares.
as they scale up production some costs go down due to volume but at the last call they claimed they wouldn't break even until 2025 I think.
so the more they make in 2024 the more they may lose
understanding the costs of the battery recall and switch to new supplier will be a one time hit as well.
is this all priced in? I doubt it. So waiting for an opportunity after the next call, if I'm wrong at these prices its ok to miss out on a 20-50c rise
very puzzled why we haven't had any official updates from the company on the BEV recall conclusion and current production numbers.
we should be getting monthly production numbers like any other vehicle manufacturer.
Tempted to break my rule about waiting for the Q4 numbers both here and PLUG before adding to my position
I am from the uk but live outside washington DC
there was one H2 station about 10 years ago but no more.
The dispensing technology should by now be reliable - not sure why NEL had issues - PLUG has deployed may dispensers to their material handling customers but as you scale up volume per day to be dispensed (and different pressures) costs increase.
In Europe PLUG has a third party supplier as well and they have the JV in Korea to work on this for Korean and Chinese markets.
Trucks need higher pressure and larger quantities and Daimler have just thrown a new standard into the market which is supposedly much cheaper to implement so will everyone cut over to that like they have to the Tesla charging adaptor?
I have to admit it is probably better for pLUG to stay out of the actual retail/truck dispenser market for now and focus on the production and supply to those who need it - like Nikola and Hyzon.
when did he say financing was done for Texas and NY? (since Q3 earnings call).
They could tap the ATM to fund the plants but in reality that is for day to day expenses. They culd sell part of the projects or wait fo rthe DOE loan whihc is in part justified by these and future plants.
I do not expect either to restart until DOE loan is secured or some yet to be announced financing
So if we assume the loan will not come through until Q3 (current official PLUG view) it is unlikely that NY Stamp will be completed within 12 months with a very good run they may make end of 2025.
I know some people think the loan is likely to be approved in Q2 but as your diagram shows lots of paper work and milestones to get past. Not least of which is congress/OPM approval.
THANKS WTM
I wonder what caused the nice rise today?
all timelines depend on the DOE loan getting approved as that is how it will now be financed.
I hope NY Stamp is higher priority than Graham, Texas (its bigger volume) although geography may suggest Texas is better as more customers there?
PLUGs current problems stem from the fact that they did wait, or got delayed.
any idea how long the paper pushing process of redeeming vouchers takes. I suspect it is a few weeks from delivery. Then there is the delay in updating the database.
I do wish we had a feel for current numbers of FCEV being built each week. Seems the BEVs are being fixed and shipped back to their owners which may have slowed production of FCEVs but got to get them back on the road.
great results and forecast.
now to catch up with the big boys should get some big upgrades and price adjustments.
waiting 3 days before deciding if to take anything off or at least set a stop loss.
so let me post this news. …. any idea how many Sure Source 3000 are being bought? and revenues? I know the roject got he go ahead but allways good to actually see an order appear (FCEL doesnt get too many orders)
FuelCell Energy Inc. (FCEL) filed a Form 8K - Other Events - with the U.S Securities and Exchange Commission on January 31, 2024.
In support of the relationship between FuelCell Energy, Inc. (the "Company") and ExxonMobil Technology and Engineering Company (f/k/a ExxonMobil Research and Engineering Company) ("EMTEC") under the Joint Development Agreement dated November 5, 2019 and amended on October 29, 2021, April 29, 2022, December 19, 2022 and August 25, 2023 (the "JDA"), on January 31, 2024, the Company received a binding purchase order from Esso Nederland B.V. ("Esso"), an affiliate of Exxon Mobil Corporation ("ExxonMobil") and EMTEC, for fuel cell modules as well as engineering, procurement, fabrication, testing and delivery services required for the construction and implementation of the modular point source carbon capture pilot plant at the Esso Rotterdam Manufacturing Complex. This purchase order provides the funding required by the Company to complete the manufacturing, engineering and other work to support the pilot project through start-up at the project site.
This pilot project will be a full-scale commercial prototype of the modules expected to be used in large scale systems for industrial and commercial point source carbon capture applications. The modular design of this system enables the technology to be deployed at a wide range of locations, operate at high efficiency, and we believe will advance business goals at hard to decarbonize industrial and commercial applications. The modules to be used in this commercial demonstration project will use carbonate fuel cells to efficiently capture and concentrate carbon dioxide streams. In this pilot project, combustion exhaust from an external source, a flue stream, will be directed to the fuel cell, which will electrochemically react fuel and air to produce power, while capturing and concentrating carbon dioxide for utilization or permanent storage. ExxonMobil has previously announced its intent to transport captured CO2 from this project via the Porthos project for permanent storage under the North Sea.
Tennessee back up and running - 25 PD total production, next Louisiana
https://www.ir.plugpower.com/press-releases/news-details/2024/Plug-Power-Starts-Production-of-Liquid-Hydrogen-at-its-Existing-Tennessee-Plant/default.aspx
Plug Power Starts Production of Liquid Hydrogen at its Existing Tennessee Plant
February 06, 2024
Implemented design improvements on Tennessee plant which further enhances the efficiency of the generation facility
Between Georgia and Tennessee, Plug now has about 25 tons per day of liquid hydrogen production capacity, further enhancing the overall generation network in the US
LATHAM, N.Y., Feb. 06, 2024 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, has re-started operation of its hydrogen plant in Charleston, Tennessee, adding about ten tons per day (TPD) of liquid hydrogen supply back onto the U.S. market. Plug also implemented design improvements to enhance overall plant efficiency.
Plug’s cryogenic trailer fleet will deliver liquid hydrogen from the Tennessee plant to Plug’s pedestal customers throughout North America, with a high-density of users clustered throughout the Midwest and along the East Coast. This adds to Plug’s supply of liquid hydrogen currently being delivered to customers for use in material handling operations, fuel cell electric vehicle fleets, and stationary power applications.
“With the Tennessee plant coming back online, we have taken another step towards building a vertically integrated hydrogen network in North America,” said Andy Marsh, Plug Power CEO. “In addition, we expect to have our joint venture plant in Louisiana to come online in the third quarter of 2024, adding another 15 TPD of liquid hydrogen capacity to the market.”
“This liquid hydrogen production out of Georgia and Tennessee is expected to bring down the average cost of delivered hydrogen, positively impacting Plug’s fuel margins in line with our strategy,” added Sanjay Shrestha, General Manager, Energy Solutions & Chief Strategy Officer at Plug.
Plug began production of liquid green hydrogen at its Georgia plant on January 23, 2024. At 15 TPD, this is the largest liquid green hydrogen plant in the U.S. market, and largest PEM electrolyzer deployment operating in the U.S. The company is doing substantial work on building plants in New York and Texas, as well as Europe, with plants underway in Finland and Belgium.
From Facebook group:
City of Graham, Texas posted a transit alert for Graham.
21h ·
The City of Graham is currently engaged in construction of a reclaimed waterline. A portion of the line is being installed along FM 209 from the intersection of FM 209 and Hwy 67 to west of Warren Road.
We ask that motorist please watch out for workers along this segment and watch for construction in progress signage along the roadway. The City does not anticipate a full closure of the roadway, but motorists may encounter periods where a flagman is present and only one lane of the roadway is open. The construction is expected to continue along the roadway for the next six weeks.
All reactions:23You and 22 others
We certainly seem to have the best PEM electroyser available.
with Georgia now proving them in the field unlike any other site even more decisions should come our way.
Time for the European factory to start planning so when cash flow allows we can build quickly
HI WTM
I havent heard anything, technically they were back in compliance at the end of November
I would suggest changing your password for starters. May be talk to IHub admins who could check things like which I address the ghost postings are coming from
They got an updated analyst price this morning:
WTM
looking at the Hyliion video about KARNO it was shown on a class 8 truck doing sound comparison to a diesel generator so I don't think hey are abandoning trucks, just may lead with generators if they have existing distribution channel and a demand - . my concern with generators is that they are typically ihn the field for week and months so will need a mobile refueling strategy compared to truck that can have depot based refueling.
only PLUG has an establish hydrogen refueling for small systems strategy with their GenSure systems at cell towers and railway lines.
For trucks in the right market you can have your base tanks and refueling and then top. off at the public stations that exist in and around California ports and being built in other strategic areas (Canada for instance)
So on the other hand KARNO can run of Natural gas so can be established using that fuel in stationary applications like data-centers as your subsequent post suggests. It is a shame PEM fuel cells are ted to use hydrogen. The hydrogen producers ned to step up production (of any color but preferable green, white or blue) so availability doesn't hider usage.
Mods cannot alter posts! You can always appeal a board moderators decision to the IH admin
No mod removals for a few days, I personally like to keep am open mind especially while there i slow news and a reasonable number of posts. I do see the IH Admin removing posts from one user not sure for what reason. Just keep it civil, reasonably on topic and no duplicates
WTM I did find this very long post analyzing the gross margins and the way the businesses are grouped in the accounts
From Gerard Hoeb
All about the Gross Margins
A lot has been said and analyzed already about the annual business update, but I think that in particular 2024 is going to be an extremely important year for Plug Power and the most important item for the future of Plug Power, it is probably going to be all about the gross margins.
Plug management has received that message loud and clear. Up till now Plug Power has been "subsidizing hydrogen for customers" (quote Andy Marsh) by delivering hydrogen fuel far under market prices in an attempt to win market share. However, everyone knew this can only be a temporary strategy, and now the time is up. So let's see what Plug Power management is projecting for 2024 and let's try to assess how likely their projections are, by digging through the SEC-filings of the last 3 years.
Methodology Gross Margins in SEC-filings
In the 10-Q and 10-K reports Plug Power reports on their gross margins in five separate categories:
Sales of fuel cell systems, related infrastructure and equipment
Services performed on fuel cell systems and related infrastructure
Provision for loss contracts related to service
Power purchase agreements
Fuel delivered to customers and related equipment
Because I have been digging in the SEC-filings for a while, I know for a fact that the revenue is related to revenue breakdown in such a way, that all revenue posted under "Sales of fuel cell systems, related infrastructure and equipment" is the sum of revenue from the following business segments, as listed in the revenue breakdown (these numbers add up in last 11 earnings report to match the category):
Sales of fuel cell systems
Sales of hydrogen infrastructure
Sales of electrolyzers
Sales of engineered equipment
Sales of cryogenic equipment and other
So if you are interested in gross margins of one of these 5 subcategories: it is listed under "Sales of fuel cell systems, related infrastructure and equipment".
Finally we have to address the "Provision for loss contracts related to service". These are defined as "expected costs of providing services under contract which exceed the the related unearned net revenue" and these are [my interpretation, open for discussion] basically losses directly tied to Plug Power providing extended maintenance services for customers. So in the SEC-filings this is always listed as "Cost of Revenue" without ever having hrevenue tied to it. The gross margins are hence listed as "N/A" in the SEC-filings. For my analysis, I have tied the "Provision for loss contracts related to service" to the revenue of "Services performed", hence the gross margins in my analysis show higher costs of revenue tied to Services performed. (I will include the Plug Power SEC-filings methodology for comparison).
Gross Margins in Sales of fuel cell systems, related infrastructure and equipment
As mentioned above, this includes 5 subcategories, so let's do one at a time:
Sales of fuel cell systems
As I think everyone knows, selling Fuel Cell systems for material handling is the cornerstone of Plug's business and their main product up till 2020. Gross margins are not reported separately for fuel cell systems, but if you would look at gross margins some years back, you will see very positive gross margins on fuel cell systems and related hydrogen infrastructure:
2019 +35.4%
2018 +21.3%
2017 +12.5%
It is likely that starting up the Vista plant (producing fuel cells) in Slingerlands, NY likely had a negative impact on the gross margins, yet one would also expect given the historic positive gross margins, that this part of the business will be generating positive gross margins in 2024.
Bottom-line is: Andy or Paul did not comment on this during the annual business call earlier this week.
Sales of hydrogen infrastructure
The sales of hydrogen infrastructure is directly related to the number of hydrogen site installations Plug Power does per quarter. Just like the sales of fuel cell systems, this has been a part of the Plug Power business for a long time, and was - aggregated with sales of the fuel cell systems, historically a positive gross margin segment (see gross margins above). The number of hydrogen sites installed, has been more or less stable since 2021, as I have published on the growth in revenue per business segment some months ago.
TTM: 55
2022: 44
2021: 49
2020: 27
2019: 4
2018: 17
Bottom-line, just like the fuel cell systems business segment: Andy or Paul did not comment on this during the annual business call earlier this week.
Sales of electrolyzers
We don't have any hard data on the gross margins of electrolyzers, yet we know the aggregate gross margins on equipment sales have dropped since starting the electrolyzer business. This indicates the electrolyzer had a negative impact on gross margins in the first quarters. During the Q2 2023 earnings call, Paul Middleton made some very (IMHO overly) optimistic statements about gross margins, which don't seem to add up at the moment, as we have seen negative gross margins on equipment sales overall in Q3 2023. If every segment of equipment sales by Plug Power was seeing over 20% positive gross margins, it would never add up to negative gross margins..
"Electrolyzers is the early phase of what we're doing there. As I mentioned, we got four times the sales in the second half. But it's already in the 20s, and we'll quickly grow up to that 30% plus."
Paul Middleton, Q2 2023 earnings call, Aug 9th, 2023
The comments made during this week's business update by Andy and Paul indicate that the electrolyzer business is not generating positive gross margins in the first half of 2024:
"Our electrolyzer business is expected to reach positive gross margins in the later half of 2024, contributing to cash flows throughout 2024. Initial high inventory costs and early underpriced deals will impact gross margin in the first half of the year, but pricing was adjusted in the second half of 2023, which will allow this business to achieve expected gross margins near 30% by the fourth quarter of 2023."
Andy Marsh, business update Jan 23rd, 2024
The full comment by Andy is somewhat confusing to me, (did he perhaps mean "30% by the fourth quarter of 2024"?). However it's clear that the electrolyzer business is expected to reach positive gross margins in the later half of 2024. Of all the projections made during the business update call, I think this is probably one of the most achievable ones, especially with the projection they will save $100,000 USD per electrolyzer stack by using a new bonding strategy.
Sales of engineered equipment
This is a special category of Plug's business as this was introduced in the SEC-filings, since acquiring Frames. The revenue listed here are sales of engineered oil and gas equipment, which is being manufactured as part of legacy contracts inherited from Frames Group. As I have shown in a previous analysis, the sales of engineered equipment has been diminishing over time and Plug management expects it to be discontinued in the future (currently it's a -50.7% Year-over-Year decline in revenue), with TTM revenue for this business segment currently at $41.2 million USD.
Andy or Paul did not comment on the development and the gross margins in this business segment during the annual business call earlier this week.
Sales of cryogenic equipment and other
The gross margins on cryogenic equipment has been mentioned several times during previous earnings call, and also during this week's business update, the gross margins of the cryogenic business were mentioned:
"Our cryogenic equipment and liquefaction systems are already generating positive gross margin with cash generation expected to rise throughout 2024."
Andy Marsh, business update Jan 23rd, 2024
During the Q2 2023 earnings call, Paul Middleton gave more insight into gross margins for this part of the business:
"So, cryogenic, the trailer, and the tank business. I mean, those are existing businesses that are in the mid-20s to high -- upper 20s. So, as we launch -- and as we're launching new products like mobile refuelers and hydrogen trailers, those are actually incredibly accretive in the market, and that will be north of 30 out of the gate."
Paul Middleton, Q2 2023 earnings call, Aug 9th, 2023
As mentioned before, Paul's estimates are perhaps over-optimistic, still it's clear that the cryogenic business of Plug Power has a very positive effect and is generating positive gross margins which are expected to increase in the upcoming year.
Overview of Sales of fuel cell systems, related infrastructure and equipment
Having looked at the separate business lines, when we look at the SEC-filings for the gross margins, we can see that Plug Power has been posting positive gross margins for as long as I looked back, with the exception of Q3 2023: for the last quarter Plug reported negative gross margins for equipment sales! With the above analysis, I have hopefully explained why I always think that the cryogenic equipment seems to be one of the most positive parts of Plug's business, while I think the electrolyzer business, but also the fuel cell business (because the ramping up of new products, like the MW-scale back-up power generator) likely had a negative impact on gross margins in recent quarters.
In the Q3 the negative gross margin for the sales of equipment was explained as: "The decrease in gross margin was primarily due to ramp up of costs on new product offerings for high power stationary units and electrolyzers as well as changes in customer mix."
Summarized: If Plug Power is to improve gross margins, they have to show in the next quarters that the Q3 2023 dip in gross margins in equipment sales was temporary and indeed due to the ramp up of costs for new products.
Gross Margins in Services performed on fuel cell systems and related infrastructure
A lot of people have asked me: what is causing Plug to burn money? Many will start about Plug building plants, acquiring companies and the losses on delivering the hydrogen fuel, but not many mention the business segment with the most negative gross margins. From my perspective that segment is: services performed by Plug Power on fuel cell systems and related infrastructure (including loss contracts).
Based on the SEC-filings the gross margins for performed services have been:
TTM: -102.8%
2022: -68.3%
However, as I explained above, for a fair comparison I think we should aggregate the provisions for loss contracts to the services segment, as in the end, it are the service contracts that are generating the cost of revenue. In that case the gross margins for Plug Power's services business segment look like:
TTM: -302.72%
2022: -144.23%
Now Andy said the following about this business segment during the business update:
"Our service sector has faced challenges, leading us to implement price increases and efforts to minimize field failures. We've identified solutions to some issues and have onboarded an experienced individual in distribution center engineering to spearhead these improvements. We are targeting this business reaching gross margin positive in the fourth quarter."
Andy Marsh, business update Jan 23rd, 2024
Notice the wording, which was from the prepared statement (and not the Q&A session): Plug is "targeting gross margin positive", which is of course different from expecting that such a gross margin will be accomplished. I personally have a very hard time to believe, that with the limited number of "solutions to issues" mentioned during the business update, Plug Power will be able to reach positive gross margins for this business segment, (even when excluding the provision of loss contracts).
I would like to hear everyone's opinion, but I think this business segment is going to be the hardest one to achieve gross margin positive and I don't see a lot of reasons to believe Plug will greatly improve gross margins here in 2024.
Gross Margins in Power purchase agreements
Revenue from PPAs represents payments received from customers for power generated through the provision of equipment and service. Going by Plug Power self-reported gross margins, the Power Purchase Agreements has historically been the segment with the most negative gross margins. Only in recent years (partly due to higher gas prices) the hydrogen fuel delivery segment generated even worse gross margins. Recent gross margins of the Power Purchase Agreements are as follows:
TTM: -230.6%
2022: -206.7%
2021: -191.4%
During the annual business update call, Andy said the following about the PPA segment:
"The PPA segment has been injured by a mixture of factors, including the mismatch between the bank repayment terms and the lifespan of our assets. This has ballooned our restricted cash to $1 billion. Following a pause in new PPAs in the fourth quarter, as Paul mentioned, we're shifting our approach to enable customers to deal directly with banks, mirroring forklift dealers operations. While this may temper short-term revenue growth in material handling, we anticipate resolving these issues in the later half of the year. We expect this change will transform PPAs into a cash source for Plug in 2024 and the next five years as the restricted cash gets released. For material handling products, while material costs are in line with our targets, overhead has been high. We've consolidated our satellite facilities and third-party warehouses to cut costs. The implementation of SAP in the second half of the year is expected to significantly enhance operational efficiency."
Andy Marsh, business update Jan 23rd, 2024
So my interpretation is that Plug Power is going to try push their current PPA customers towards direct sale models, shrinking this negative margins business and moreover enabling Plug Power to release approximate $200 million USD a year from the restricted cash.
It sounds to me like a solid plan, yet it is worth noting that this is the only business segment were Plug Power is not expecting or targeting positive gross margins. Or at least, they did not mention this during the business update call.
Gross Margins in Fuel delivered to customers and related equipment
It's no secret to most Plug Power shareholders that Plug has been losing a lot of money on hydrogen fuel delivery. Like the Power purchase agreements, the gross margins have been extremely poor over the years for this part of the business:
TTM: -270.5%
2022: -239.6%
2021: -171.1%
Analysts have estimated that Plug has been selling hydrogen to customers for approx $5 USD /kg while buying it from third party suppliers for $12 USD / kg - $15 USD / kg and in Q3 2023 (due to the hydrogen supply disruption in the US) up to $25 USD / kg. With the Georgia plant expected to be able to produce liquid hydrogen costs at around $7.2 USD / kg (estimate by Plug Power for Georgia 2025), this will definitely drive down negative gross margins. Furthermore, the Tennessee and Louisiana plant are likely producing liquid hydrogen cheaper, as these are not green hydrogen plants. I would rather call the Tennessee and Louisiana locations 'liquefaction facilities' because these are getting the hydrogen as a by product from a nearby Chlor-alkali plant and in turn produce liquid hydrogen for Plug's customers.
However, I think the best part of the business update is the fact that Plug announced that starting February 1, 2024, there will be no more subsidizing of hydrogen. Andy added some colour on the process of raising hydrogen fuel prices during the Q&A session:
"Can you just give us an idea of maybe how the conversations have gone with your customers? [...] Do you expect to actually have positive margins on hydrogen sales before the end of the year?" -analyst Craig Irwin
"By the end of the year, we do expect positive gross margins, Craig. Look, having conversations with customers about raising prices is never pleasant. But I think the key is, and I've heard this from our largest customer, what's the road map for the future? And when we point out how between some of the efforts our forward-looking group's doing to make sure, in a very simple term, more the hydrogen that's produced is delivered because of managing outgassing of the liquid, to the fact that as new plants come online, we can start bringing the pricing down very much closer to where traditionally they paid, adjusted for inflation. So I think when you look at that, the more knowledgeable customers about hydrogen understand that road map. Do they like that the price is going up? No. Do they understand this is critical to making sure their operation runs? And I think what they've really been focused on is, is this improvement going to continue? And I think the answer is, yes. And look, and we're talking to our third-party suppliers too. And I think there is an understanding that, to support the development of the hydrogen industry, they're going to have to help in this area, too."
Andy Marsh, business update Jan 23rd, 2024
To me, the historic negative gross margins in fuel delivery are finally going to be addressed and the additional explanation by Andy convinces me that this is an achievable pathway to positive gross margins. More liquid hydrogen production by Plug, selling at higher prices to customers, buying at lower prices from third party suppliers..
----------
Summarized, 2024 is going to be an exciting year for Plug Power as this has to be the year that the company will turn around the gross margins into positive territory This is the most important thing now for shareholders and a sustainable financial situation for the company in the long term, and I hope the above write-up helps as reference for studying Plug Power gross margins yourself.
DISCLAIMER:
This is not investment advice. I like to do my own research, but I am not a finance professional. No guarantee is provided on the accuracy, correctness or completeness on any of my posts.
WTM
since PLUG IR stopped sending their daily market updates including an analyst reports the groups is no longer the special group it was. It does still keep pretty strongly to PLUG matters with the occasional Nikola thrown in.
recent posts covered topics here the Lyfhe project formally being a success, the HYVIA big order.
one interesting thread is posts on the price to borrow shares - went from c $3 on Jan 15th to over $10 on Jan 25th. indicating shorts may soon be forced to cover if the account they borrowed form claims them back.
will keep an eye out for anything worthy of iHub!
shame he doesn't know much about Nikola and why there are so many trucks in the facility, we need Bear to do weekly (may be2 week) flyovers
You seem to think Texas and NY are “nearly completed”.
Texas they finished the access road and clearing the plant may be even leveling it but no actual plant construction
NY Stamp likewise has been cleared and leveled - yes 2 storage tanks were ordered as they were long lead time - then the permitting and appeals kicked in. I would doubt the loan would cover the electric substation PLUG had built for the whole facility.
Hey JB. do you thin it was Walmart or Amazon or one of the other pedestal customers switching to paying cash not the PPA?
I havent seen any rumors at all , but suspect it is Amazon and they have an option to buy an electrolyser to supply the H2.
I’m waiting to hear their current run rate for FCEV and how it will ramp up through the year.
wont be making money on individual trucks until 2025 so have to establish the subsidy they need in cash to keep running along with the HYLA roll out.
there will be plenty of time to buy this cheap compared to the price in 2-3 years time
I have been using 70 TPD as the maximum at end of 2023 and given some of the slippage of deliveries may be we are 60 TPD
either way we are well short, even Texas wouldn't cover us - for any in house hydrogen not just green.
we need NY Stamp to be the next plant up and running
Just re read the transcript.
the glaring omission is any mention of Europe apart from the “update” on Hyvia. Are they still building the Bruges plant (is that where the $140m capex is going?). I would have thought sales of electrolysers and cryo equipment was as good there as in USA.
BREAKING NEWS
Georgia plant is up and running
(Andy opening remark )
wish Nikola would PR this news to make it official.
Now this is some bad news but does reinforce the market for large stationary solutions
I believe Microsoft plan on still continuing the trials with PLUG and other companies. I suspect there will be a RFP for a 5-10 data center pilot program before settling on one or may be two solutions. This trial was let by the DOE well before the demonstration at Latham that PLUG promoted in 2022 hat led to the commercialized 1MW fuel cell solution. Rumor had it that PLUG was working with MSoft on a 3MW test system at a test datacenter.
https://www.prnewswire.com/news-releases/caterpillar-demonstrates-viability-of-using-hydrogen-fuel-cell-technology-for-backup-power-at-microsoft-data-center-302039485.html
I am waiting for next week before trying to make calculations about cash burn.
I thnk squandered is a little harsh
Had NY got permits in the timeline SAnjay presented the board they would be generating 75 TPD by now and ot be in the situation. Georgia beingsmaller was cheaper to build then NY
their billions have been invested into their business with facilities and partnerships
so it hasnt be squandered, ie thrown away, but it will be at least 6 months before any significant chane in the margins is visible through cheaper H2.
hence the need for cash
Surprised we haven’t had a “we shipped 700MW of electolysers in23 up 500% from 22”type of PR (dummy numbers there).
If car companies do delivery numbers days after every month end we could be doing it for electolysers and fuel cells.
ATM is better than a full off $1bn raise in one go.
Really need GA to reduce weekly cash needed to pay Air products for gray expensive hydrogen.
Convinced they and chart and other “competitors” have been ganging up to exploit the situation.
Hopefully next week we have the details of cash required by quarter , month would be better.
Should still look to see if selling some assets may work
this looks better than the EXXON deal.
Any idea on the size of the deal - how many SureSource 3000 will they “bolt onto” the existing power generators?
Seems there is stil some opposition though:
"BECCS is an unproven and highly controversial technology that would come at significant financial cost to the UK public,”
hope we see a PR from FCEL in the next few days
PLUG are involved in many of the H2Hubs which is what this bulletin is all about.
seems though the initiative is to drive demand rather than help with the supply side of green H2.
IMHO the govt should be helping the production/supply side for GREEN H2. Companies will adopt it as part of their environmental goals even if it is a little more expensive. Demand for H2 generally is increasing and IMHO will be growing significantly this year and next, we need that demand to be met by new Green production not supposedly clean Blue (are there any CCS systems in any H2 prodution plant yet?) and certainly not gray.
I am thinking a new chairman of the board ahead of any C Suite changes.
George McNamee although the original founder certainly ist acting on shareholders behalf (which is his role).
Paul M should have been removed with the accounting scandal and Andy M moved to a more “Emeritus” position not day to day CEO.
What are SK doing as well board level changes are things that Korean partners often look for...
FCEVs have the full word NIKOLA across the font (like the photo)
BEVs just have the letter N.
thats the easiest distinction