Keeping It Simple

[eastunder]

PLUG earnings call for the period ending September 30, 2023.

https://www.fool.com/earnings/call-transcripts/2023/11/09/plug-power-plug-q3-2023-earnings-call-transcript/

Andy Marsh -- Chief Executive Officer

Thank you, Teal, and thank you for joining the third quarter conference call. It's 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 downed 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 or 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 has been accomplished while reducing the core cost of hydrogen compared to the second quarter.

Good news is the network is now stabilized and many of these planned 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 nameplate capacity in the coming months.

The planned output has been producing between 0% to 25% of capacity. We are continuing to see progress at our Georgia plant, and we are 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 the delay of deployment of some of our North American material handling customers.

These sites will be commissioned as the hydrogen issues resolved. It's just a timing issue. Many of those facilities, actually the fuel cells and hydrogen plant or fueling structure 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 the 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 like to just like to reflect on the conversation I had yesterday morning with a European customer supplier and partner. He just toured our facilities and reminded me that no one has built hydrogen infrastructure on the scale we have.

No one has our product set, no one has the technical talent, no one has our customer relationships, and no one has our real-life experiences. It remains our belief and that as the market for hydrogen fuel cell 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.