Thank you. Thank you. Good morning, everyone. Good morning. Welcome. On behalf of all of our Bloom Energy colleagues worldwide, I'd like to welcome you to our 2022 Investor Conference. We have an exciting day for you today, and it actually already started with our technology showcase this morning. In a couple of minutes, we'll start a presentation that will be full of data, full of content, that you will actually see quite clearly how we're going to reach our short-term and long-term goals. But first, safety is very important at Bloom Energy as well. So let me share with you a couple of safety messages. Number one, more importantly, fire escape. You see the door that's open there where you came in? That's the fastest way to get out of the building. If needed, I will be calling 911. If I'm unable to do that, Debula will be seconding me for the 911 call. If there's any individual emergencies, there's an AED and first aid kit in the offices on the left. We will get that for you. Let's talk a little bit about Safe Harbor. There's a slide. Don't worry. I am not going to read all of it. What it says is that today we will be making some forward-looking statements. These statements are estimates that are made with the best data that we have on hand today. Sometimes the future doesn't pan out the way you wanted it to or the way you plan it to be. We just wanted you to remember that fact. With that said and done, let's start today's presentations. Thank you very much again for coming. I hope you enjoy your stay with us. Thank you. Please welcome Chairman and CEO, K.R. Sridhar. Hello, everyone. We are excited by the opportunities energy transformation is creating for us. We are proud of the role we play in both combating climate change and providing energy security. Our unique platform enables us to achieve a diversified and robust top-line growth with continued margin expansion, all aimed at delivering you, the shareholder, the greatest value. The theme of our meeting today: Mission Decarbonization. Why? Because it is a solution. It is the solution to the existential crisis of our time: climate change. We can successfully slow down the adverse effects of the climate crisis by drastically reducing the carbon emissions into the atmosphere. On this mission, time, time is of the essence. Shifting from high to low carbon intensity energy mix now is as important as developing net-zero solutions that will take time to reach scale and have an impact. Why this urgency? In the absence of immediate action taken to substantially reduce emissions in the next decade, our planet is on track to a disastrous 2.7 degrees Celsius temperature increase. We must act now because there is a time value of carbon. You all know this from your compounding of money story. A unit of carbon emissions that's avoided immediately is worth far more than the same potential unit of carbon being removed decades from now. Just think about this. A future technology that is net-zero starting many years from now trying to scale, and because of the perilous loops that you have, the feedback loops it has, the impact it has on climate is very different from starting to remove carbon in every possible means along the way. So it's an and, and, and solution with a time value of carbon. Right? Okay. So this is the reason when you look at it, renewables alone, growing at three times the current record rate, allow that to happen, cannot lower the emissions in a timely manner. That's not coming from us. The International Energy Agency says that and emphasizes the need to focus on carbon capture, hydrogen, waste-to-energy, and a shift from coal and oil to gas. This is also the reason why the European Union has deemed natural gas-based power as a green investment. We at Bloom Energy agree with the IEA and the European Union. Our flexible platform will play an important role in all the pathways to decarbonization: short-term, mid-term, and long-term. In addition to decarbonization, there is another major factor that will shape our energy transformation. And that is energy security and energy resiliency. Business operations and everyday life are unthinkable when there's a disruption for days of electricity or fuel supply. Digital transformation has made virtually every aspect of our life run on electricity and energy. Geopolitics, geopolitical risks to energy, cyberattacks, natural disasters, and the damage natural disasters cause to poles and wires that bring electricity to us, and the inability of the legacy solutions to meet the surging demand that the world has all contribute to energy security, energy insecurity, and energy anxiety, so the future in this energy transformation is going to be about two things: decarbonization and energy security. Not or, and. We are the one company that does not ask corporations and communities to make a false choice between security and decarbonization. We are an and company. Our solution offers both without compromise. Our technology platform is modular and hot-swappable. The distributed architecture located at the edge provides the level of reliability that a centralized grid never can. The energy servers can also be clustered to build an energy cloud, like computer servers building a data cloud. Such an energy cloud is geared for utility-scale carbon capture, and it is designed for green hydrogen production at refinery scale. Let me spend a few minutes now on the unique and proprietary platform whose intellectual property is highly protected for us. The platform converts chemical energy to electrical energy directly. This is the fuel cell mode. The platform also converts electrical energy to chemical energy directly. This is the electrolyzer mode. Operated in either direction, we offer the best conversion efficiency in the marketplace. Period. The flexibility of the inputs and outputs from our platform accommodates and enables us to tailor solutions for our customers. Our platform uses an architecture that is similar to the semiconductor industry. I'm waiting for that slide to switch. Thank you. And what it does, this architecture, it emulates the semiconductor industry in its building blocks. But more importantly, it tries to adopt the successful cost-down and learning curves associated with that. Look at what you're seeing. The fuel cells, the stacks, the server modules, the systems, the power center. For us, our analogs to the transistor, the integrated chip, the server blade, the rack, and the data center in the computer world. Right? So what have we done with this? In about 10 years, this company has built over 65 million fuel cells, over 2 million stacks, over 30,000 server blades installed in over 700 locations. And the amount of power we generated, 20 billion kilowatt-hours, it's hard to think about this number. Since most of you are from New York City, it's enough to power all of New York City for more than 150 days. Just stop and think about it for a minute. Okay? This year alone, we will add another 15 million fuel cells, another 6 million energy modules. What will that do? Enough to power through its life, what we put out this year will be sufficient to power New York City for over 75 days. So when you think about growth, what we did in the last 10 years, cumulatively, we have been able to power 150 days. This year alone, we'll put out boxes that can power for half that time. We're growing fast. Next slide. And one more point out here. Go back, please. One more point out here. Are you able to go back? There we go. We are able to add something else. Every chip, the stack, unlike the semiconductor industry, has a digital twin that's remotely monitored, controlled, and analyzed. We use machine learning algorithms to learn from each one of those stacks to make it better, cheaper, faster. That's what we do. Let's go to the next slide. From an energy server evolution, going all the way from a zero-generation five kilowatt to our latest generation, our power density, if you just look at the pictures, it's heavily simplified. Components are remote. We've gone from increasing our power density. This is the footprint needed to produce the same amount of electricity. If you're going to put them in cities, this is important. Right? That's gone up 12x. When was the last time you saw power generation equipment going down in scale that size? Okay? If you look at the material usage, you all ask about cost. Less stuff goes in, less expensive it is. If you just take that, look at the material usage, it's gone down eight times kilograms per kilowatt. You have less materials. It costs less to build it. It costs less to buy it. Next slide, please. So we stay focused. In the last 20 years, by doing this versatile platform, we have capitalized on everything we can do and bring value to our stakeholders. So when we built this company can we go back on this? The script is completely somewhere else. No, the script. Okay. So we have created what is an efficient, high-efficiency footprint, better products at lower costs. That combination of the learning and combination of the systems is what has led us to that. We stay focused for the last 20 years on developing this versatile technology and making it affordable, robust, scalable. Built a strong company that's well-capitalized and dedicated to delivering long-term value for our stakeholders. And the track record team to execute this is what you should be looking at when you're looking at what we do. So where are we in terms of the markets and where we are with the customers? We're very bullish on our growth trajectory. You could have sensed that. Why? Just look at our customers. They are among the leading companies in the world. They're companies that lead on operational excellence. They're companies that lead on risk management and on ESG. These companies choose us for their energy needs today. And they're confident of our ability to meet their goals going forward. We execute and deliver on the promises we make to them. How can you be sure? They give us large, multiple repeat orders. More than two-thirds of our business comes from our existing customers. We offer our customers predictability, resiliency, and sustainability. These three core value propositions are getting better and more compelling by the day. The alternative for them is to procure power from the grid. It's getting less predictable, less resilient, less reliable. Bloom, on the other hand, is more predictable by the day, as you saw in the numbers, more affordable, and more reliable and resilient. You should not be surprised then when I tell you Bloom's share of the U.S. stationary fuel cell installations is 80%. We play to win. We have a very strong sales funnel. The best we have ever had. Speaking of real markets, leadership, and winning, let me say a few words about Korea. We entered the Korean market five years ago. We're head and shoulders above the rest of the competition. Better in efficiency, better in capacity factor, better in availability. Bloom and our partner SK Eco Plant won 100% of the Korean utility RFPs we were eligible for. Let me repeat, 100%. We have deployed over 200 megawatts already out there. In October of last year, our Korea partner SK Eco Plant made a significant equity commitment and something that is seldom seen in our industry, a $4.5 billion minimum take-or-pay contract for our products and services. Yes, their trust in our team, confidence in our execution, and superior performance were all important considerations in them making this decision. But even more important was their confidence in our future products and our hydrogen strategy. Why is that? Korea, as a country, has committed to a national hydrogen policy that will position them as a global leader in that field. The SK Eco Plant team are confident they will secure market leadership in Korea's hydrogen economy with our best-in-class hydrogen fuel cells and electrolyzers. This desire to be a part of Bloom's hydrogen future was a critical factor in their investment and supply agreement. In fact, our first hydrogen-powered fuel cells and electrolyzers are already installed and operating in Korea. Like in the US, we now have the dominant position in stationary fuel cell deployment in Korea, five short years after we entered the country, even though competition is robust and was in the market a decade prior to our entry. Well, we move deliberately, with intentionality, and we execute with focus to become the market leader. So where are we headed next? Europe. It is clear that the current geopolitics, commitment to decarbonization, support for hydrogen, and electricity growth arising out of electrification of transportation and digitization. The timing is right for us to enter the European market. I'm happy to announce that our head of international business, Tim Schweikert, from whom you will hear soon, is going to relocate to Europe. Additionally, Carlos Lange, a power industry veteran for 20 years who ran distributed power business for GE, Alstom Power, and MAN, will join us as a special advisor in Europe. We look forward to our market entry and growth in Europe. In many ways, as the industry transforms, we are in a category of our own with growing revenue, margin expansion, strong backlog, and the best, most innovative solutions for customers who want low-carbon and resilient power today and zero-emissions energy tomorrow. We'll continue to build upon our mature technology platform, solid record of accomplishment, and robust growth roadmap. We are extremely excited about our future. Thank you. Bloom Energy is SK Eco Plant's largest strategic partner in clean energy. We have become a leader in the Korean fuel cell market. Since the start of our strategic partnership in 2018, Bloom Energy and SK Eco Plant have achieved over 200 megawatts of projects. We have seen the outstanding performance of Bloom Energy's product over our past three years of collaboration. We also experienced Bloom's new hydrogen fuel cells, and we are excited about the competitive advantage of these products. Our two companies have worked closely to build a shared commitment to sustainability and innovation. Also, the green hydrogen produced by SK Eco Plant's renewable business and Bloom's electrolyzers technology will contribute to the need for clean hydrogen energy. This was the basis of our decision to sign an investment agreement in October 2021 and invest $255 million in December last year. This investment has made the partnership between the two companies even stronger, and we look forward to the future opportunities that lie ahead for us. The future of our partnership with Bloom Energy is brighter than ever, as we will continue to explore expansion opportunities. We will promote close cooperation within the hydrogen value chain using Eco Plant's business development and engineering capabilities combined with Bloom's SOEC technology. Hey, thank you, K.R., and welcome to Bloom Investor Conference. The last one we did, it was in December of 2020, and we were virtual as we were under significant COVID restrictions. Today, we're joined by over 60 participants in person in our facility here in Fremont, California, and many more streaming from around the world. I know Ed gave the safety instruction to start off, but I want to apologize if there's some background noise. This is a current and future manufacturing facility, and given the need for capacity, I wasn't going to ask them to stop building today, so you're going to hear some beeps and noises as we go through the day. Today, you'll be hearing a lot about Bloom's mission to decarbonize. Bloom is in a unique position to provide technical solutions for multiple pathways to assist our customers in their journey to net-zero. You also hear how Bloom is positioned to drive profitable growth and generate cash. To accomplish this, we're going to leverage our mature core platform across applications as we expand into new markets, simplify our business, and drive down costs as we scale. Let me begin with leveraging the core platform. We hope you all enjoyed the demonstration this morning over at our technology test center. We wanted to highlight how our core platform can be leveraged in many different applications, whether you're looking at the Bloom 5.0 or the 7.5, as a natural gas fuel cell or hydrogen, in a large industrial power tower, or as a prepackaged energy server on land or on sea, providing resiliency as a microgrid, or converting waste-to-energy, or producing clean hydrogen as an electrolyzer. It's all built off the same core platform. While we'll optimize for each application, you can see it's the same basic design. This allows us to utilize the same supply chain, manufacturing capacity, logistics, and engineering teams. Leveraging the core platform is incredibly important also as we talk about cost down. Moving on to expanding in our markets. Our power generation value prop of sustainability, resiliency, and predictability resonates with our customers. By offering fuel flexibility, we're providing customers with a roadmap to decarbonize while delivering resilient power, which moves us from a transactional selling to value selling. Our commercial pipeline remains strong. We're seeing increased interest in our ability to quickly bring power to our customer sites. This time-to-power value proposition is not only increasing demand, but it's creating a sense of urgency that is accelerating our sales cycle. We expect these opportunities to continue to grow, especially with the resurgence in U.S. manufacturing, increasing electrification, and the acceleration of the digital economy. Globally, and K.R. talked about this, we're investing in commercial resources in markets where we can drive scale. Coupled with our opportunities for hydrogen electrolyzer, carbon capture, and marine, we're confident we can meet our growth targets. When I think back to December 2020, I'd only been with Bloom a few quarters. I just left GE after 26 years, and I joined Bloom because I believe in the mission. At the last investor conference, we pledged to do a few things differently to simplify our business. We knew we had the best technology to help the world decarbonize, and my job as CFO was to give Bloom the long runway to meet that opportunity. We focus on increasing transparency and becoming more resilient. To gain the trust of the investor community, your trust, we've worked hard to increase our transparency. We've wanted to provide you with not only the ability to evaluate our commercial execution in the market, but management's effectiveness in leading the company. We've made improvements to our financial reporting package. We've published white papers. We've issued sustainability reports. We've participated in investor events to provide you greater insights, and based on your feedback and our recent investor perception study, I think we've made some progress here over the last two years. We also wanted to make the company more financially resilient so that we'd have the resources to invest in growth. We executed a $230 million green bond in 2020, and last year, we completed a $255 million investment with SK Eco Plant. Over the last two years, we've increased our unrestricted cash by two-thirds, while we've dropped our recore step by a third. We have the resources to fund our near-term investments while we build our cash generation capability. To scale this business quickly, we need to continue to simplify. We've made changes to our operating processes, to our commercial strike zones, and we are leveraging partnerships. Examples of this include we've built a really robust product management team in Sharelynn's group to manage their ability to create different applications on the core technology. We're also focusing on larger opportunities to lever not only our commercial organizations, but our service organizations as well. In addition, we continue to lever partners for originations, financing, and installations to allow us to focus on our core competencies while delivering better outcomes to our shared customers. You're going to hear a lot about partners throughout the day. While we continue to invest in technical and commercial resources, we know it's extremely important to have experienced leaders to meet the needs of a $15-$20 billion revenue business. In addition to the executive leadership team, we've been adding accomplished leaders in accounting, IT, compliance, treasury, ESG, EHS, internal audit, investor relations. These professionals have come to us from the most accomplished companies across the industry and bring tremendous leadership perspective. It's the leadership we're going to need to scale effectively. We always have remained focused on cost reductions across product, install, and service, as they each contribute to the delivered cost to our end customer. We have set and have historically achieved cost down across all these categories. We've reduced product costs 10%-15% annually by increasing our power density, simplifying the design, and implementing lean manufacturing and leveraging off our supply chain. As K.R. described, each generation of the energy server provides more output in the same footprint. As we move from Bloom 5.0 to 7.5, the power increases 50%, reducing our cost per kilowatt. As we operationalize Bloom 7.5, we've already begun to think about the next generation of technology. There's more opportunity here. As you can see in this facility, we have a very automated manufacturing process. Economically, that's allowed us to keep our stack manufacturing here in California close to our engineering teams. Innovations in optical tooling and machine learning and advanced manufacturing have created an opportunity to implement robotics previously unavailable. That's just not about reducing cost, but we're going to need to automate for us to scale effectively. This year, we plan to invest $150 million in this building on increasing our fuel stack manufacturing capacity from 280 megawatts at the end of last year to 580 megawatts by the end of this year and over a gigawatt by the end of 2023, and our assembly facility in Newark, Delaware, can expand to over two gigawatts of capacity with minimal investments. These are extremely attractive investments because as they reach full utilization, the payback on this is less than a year. And as we increase throughput, we gain valuable operating leverage to help us drive down our manufacturing cost. Many of our key suppliers have been with Bloom since the early days. Like all companies leveraging a global supply chain, we're currently experiencing some pressure, but we have a tremendous opportunity to reduce our costs. We work closely with our suppliers on targeted component costs, and they know that reducing costs is a key lever in our growth strategy. They also know that as we grow, they grow. We also have some inherent advantages to our technology. Solid oxide does not rely on precious metals like iridium or platinum, so we avoid all those shortages and price volatilities. Our solid-state process has virtually no moving pieces, allowing it to give us a longer service life. With the current pressure on the supply chain, listen, it's unlikely we're going to get to our 10%-15% down this year. But with improvements we're implementing, we expect to regain the cost-down momentum, and if prices reduce as the supply chain stabilizes, we'll recognize additional benefits. Said more simply, we're going to target cost down, assuming the current inflationary environment continues, and if or when it normalizes, we'll capture those reductions in addition. For installation, we've been very focused on reducing not only costs, but improving our cycle times, and we're leveraging EPC partners to increase the certainty of our revenue timing. The packaged energy server that I hope you saw over there this morning is one of those examples where we're leveraging technology to reduce costs. Rather than our traditional approach of assembling the servers on a customer site, we're packaging a unit all together in a standardized manufacturing environment in Delaware that also allows us to leverage EPCs for the installations, freeing up our team to be more strategic on reducing costs while improving our revenue predictability. We believe improvements like this, we can continue to reduce our cycle times and continue to reduce our costs 10% annually. Our service business is transitioning from a gross-to-a-gross margin profitable business through a relentless focus on performance and cost. To reduce our costs, we utilize a really robust reuse refurbish program. This provides lower-cost replacement modules, and it's also just better for the environment. The other big lever to reduce service costs is increasing the time between power module replacements. Our servers are built with multiple sensors gathering billions of data elements each day. The concept of digital twin or machine learning, it's not new to this team. We can tune variables to support different operating modes, improve performance, and extend life. These enhancements, coupled with technology advancements, for our 2016, 2017 fuel cell shipments, we've recorded a median stack life of over five years on average. That's 2.6 times what the life was versus 2011, and for the fuel cells that we're shipping today out of this factory, our modeling says that we're approaching six years, and we're targeting seven years for our shipments in the next 12 or 24 months. We are leveraging product cost down with data to improve our performance and to meet our annual service cost reduction of 12%, and our 20% non-GAAP gross margin target for this business still remains by 2025. We've often used the cost of electricity for a U.S. customer as a proxy to measure our cost down efforts. As we are selling more on value, to me, the LCOE analysis is less relevant, but it still remains a yardstick to measure our progress on cost down. In 2015, for a typical 15-year U.S. PPA, we were selling a solution with an average cost per kilowatt of $0.14. The tolling or the cost associated with the server, installation, service, and financing was about $0.11, and the remainder being fuel. At our last analyst day, we talked a lot about getting our reduction in costs that enabled us to get to about $0.09. Based on our continued cost reduction efforts, I would expect the Bloom portion of cost to be reduced to half again to reach $0.03 by 2028. And remember, while we show this for a natural gas PPA, this cost down benefit translates across our platform. Think electrolyzer, marine, all the savings translates across. Now, given the increase in natural gas, I thought it'd be worth spending a minute on the topic. First point, these are 15-year investment decisions, and given the abundancy of natural gas, one could expect that pricing to moderate over that period. Second, to the extent prices remain elevated, we have an inherent advantage as we operate at a higher efficiency than gas combustion. We do not see the recent natural gas movements as an issue for competitiveness for this business. We entered 2022 with a strong backlog. It was nearly double what it was the year before at $8.5 billion. This backlog will enable us to deliver 2022 revenue of $1.1-$1.15 billion. Now, we expect first-half revenues to be roughly flat with the first half of 2021, and the growth coming in the second half as we add the stack manufacturing capacity. Our first-half margins are challenged by higher costs on lower builds. While the average selling price is roughly the same, so it's not a price issue, selling price is roughly the same, our unit costs are elevated. So I would expect for the second quarter, margins to be similar as they were in the first quarter of this year. As we add capacity throughout the year and our volumes increase, this will result in a lower unit cost, and we'll get the benefits of that. To date, we've been able to offset the commodity inflation pressure through our cost down efforts. And while this challenge does continue to increase as we go into the second half, we believe we can offset this with revenue mix. We remain confident in our margin targets and to deliver positive CFOA, cash flow from operating activities, for the year. Listen, getting to operating income positive, non-GAAP operating income positive, and cash flow positive is a big rallying cry for this team. And we know once we get there, we can expand upon it, so we're very focused on delivering it for the year. Our prior accomplishments give us the confidence to think boldly about our business. Since 2017, we've grown our products and service revenue over 35%, and we've expanded our margins 25%. In February, based on the opportunities we were seeing in leveraging our core platform, we increased our revenue guidance rates to 30%-35% through 2031. This was based on the growth prospects we saw in our core power generation business to continue to grow at our historical targeted rate of 25%-30% through multiple fuels and geographies. We added five points for additional growth over the next 10 years as we build additional applications for electrolyzers, carbon capture, and marine. Today, you're going to hear a lot about these strategies in these markets. This growth, coupled with our cost downs, we're reaffirming our 2025 targets for achieving 30% non-GAAP gross margins and 15% non-GAAP operating margins. As we move beyond 2025, we would expect that there would be continued operating leverage to further expand these margins. And based on our expected cash performance this year, coupled with expanding margins, we are well positioned to increase our cash generation from operations in line with our revenue growth. Now, let me review the agenda for the day. Following me, we'll have Sharelynn Moore lead a discussion on our growth roadmap. We're seeing incredible interest in our fuel cell for power generation as our customers need clean, resilient, and abundant energy to grow their business. She'll be followed by Rick Beuttel, who leads our hydrogen electrolyzer and carbon capture strategies. Rick is a 30-year veteran of the industry and recently came to Bloom based on his belief in our differentiated technology. We'll then hear from Tim Schweickart on marine and international strategy. Tim is a fellow GE veteran, and he brings a tremendous amount of operating experience and leadership to this combined role. Our goal in this section is to provide you with deep proof points that we can grow our revenues 30%-35% over the next decade as we leverage our core application, core platform across applications and geographies. I'll then come back up, lead a discussion with Glen Griffiths, Carl Cottuli, and Satish Chary. These gentlemen have the responsibility of delivering the products to support our planned growth. Glen leads our quality, service, and operations teams. Carl leads our engineering teams, and Satish leads our global supply chain, a role that's gotten a lot more interesting over the past several quarters. You'll see we've positioned our operations like this new facility to support our growth. We'll then have 30 minutes to respond to your questions. We've already collected a few beforehand, and we'll have microphones in the room for you all. Bloom's at an inflection point. The grid is becoming less resilient and more expensive. The world needs to decarbonize. Solutions like hydrogen, renewable natural gas, and carbon capture are the future. We have those solutions, and they are in demand. We will continue to invest, reduce costs, and build our capacity. Our mature technology platform can be leveraged across multiple applications to provide customers a decarbonization pathway while meeting their needs today. We will deliver robust growth, attractive returns, and regenerating cash. We have clarity in our mission. We are extremely excited about our future. All this combined makes Bloom a compelling investment, and we hope you all agree. Thank you. Bloom and Taylor Farms have been partners for a very long time. We did our first project together in 2012 with our first fuel cell installation, some of the earliest technology that Bloom had on the market, and since then, our companies have continued to grow, and we now have two installations in the ground here in Salinas, California, with two more exciting projects coming up in the future. Taylor Farms is pursuing energy independence at our processing facilities across North America. In order to do that, we need clean, reliable, and affordable energy for our facilities. Utilizing the Bloom microgrid and the Bloom fuel cells only continues to make sense for us. It's something that we can develop on-site, and we have the reliability that we know that we need in order to power our 450,000 sq ft processing facility. Bloom's been a great partner since day one for Taylor Farms. We're really excited about it. We were early adopters. We stuck together, and we continue to advance and to develop the technology that we had on-site. While most of our projects have been built here in California, we see huge potential to take this to our processing facilities across North America and pursue that energy independence that we're looking for. We have 22 strategically placed facilities in partnership with our growing regions so that we can provide the freshest, highest quality product to our customers as quickly as possible. Taylor Farms sees our partnership with Bloom as a strategic opportunity to continue to provide clean, reliable, and affordable power for our facilities across North America. We're really excited to have some of the industry's first microgrid technology available for us. We're really pursuing energy independence, and that requires resiliency and responsible sourcing of power. And so by utilizing this microgrid island technology at our facility in San Juan Bautista, we're going to be incorporating solar energy, Bloom fuel cells, and battery technology. We're so excited about the direction that Bloom is going with hydrogen power, and we really see that as a path to 100% renewables for our facilities. Hello. Well, this is really fun. I almost feel like I just completed a really big remodel, cleaned the entire house, sent out invitations, and I'll be damned, everyone showed up. This is awesome. No, truly. Thank you for being here. It's really fun for us to spend time with our investor community. KR opened with a talk about the existential threat of climate. You can't go anywhere right now without feeling the threats of climate risk. We open the papers, we see articles, we're experiencing extreme weather, and unfortunately, the past is not the predictor of our future from an extreme weather standpoint. So while none of us want the planet to continue to warm, I don't see it as doom and gloom because from our standpoint at Bloom, we're working with customers every day in the private sector that are looking for ways to do better for the environment while at the same time doing right by their shareholders. In fact, I was listening this morning to the CEO of Salesforce, who's at Davos, and he's talking about environmental capitalism, and that is exactly Bloom's sweet spot because what we do is practical, it's pragmatic, it's right for the environment, it's right for our customers, it's right for the communities, and that's what powers me and why I'm so excited. We put together a ground-up plan, our team of product experts, strategic business developers, and marketers, and took a look at our three businesses and what we can do in the short term, the medium term, and the long term. How are we going to go after these markets? How are we going to grow? How are we going to operate in a way that captures profitable growth in the right way? How do we prioritize? Prioritization is key for us. With everything that's going on in the world, we could be spread a million different ways because there's so many opportunities. So we put a plan together looking across all of this, both from an operational standpoint as well as a market standpoint. So for us, it's really nice to be able to share it with you because we are very confident, and we actually feel, if anything, it's very conservative. There are more upsides or accelerators that could happen, policies that we'd all love to see. Unfortunately, even worse climate risk impact out in the world will drive our business, but at the same time, there's way fewer risks than there are those increased opportunities. So again, very confident. So with that, one of the common themes that you're going to see across these business plans is the concept of the platform. You heard it from Greg, you heard it from KR. This company was built on this platform. Our corporate strategy of everything we're doing around the platform is clearly important, but so is our market strategy. There's three key ways that the platform plays an important role across all three of our businesses. First, the platform allows us to tailor unique solutions. A really good example of that is in waste-to-energy. We took our same core platform, made a minor modification so that we could input biomethane, and we can turn that biomethane into electricity. What did that mean for us? It provided a whole new unlock. We sell now to municipalities. We sell now to markets in Europe potentially that we wouldn't have sold into prior. So with a slight tailor modification of the platform and unlocked new markets, that's a key concept of what we're going to talk to you about in our market plan. The other key element of this is value-driven. You've heard already about our three key value drivers: resiliency, predictability, and sustainability. Think of a safe, a safe that has three dials, three combinations. One dial is resiliency, one dial is predictability, and one dial is sustainability. It's the magic of all three of these that create a unique combination that unlocks that safe to the gold or the value. Every customer has their own unique combination, every market, every segment, every geography. And that is what we will be really good at doing, is knowing exactly how to unlock the right, most profitable markets. Key consideration. Third, we will expand with partners. Greg said it as well. Partners are key. First, we unlock new markets like South Korea with SK through a partner. In less than three years, we went from a nobody to the market leader, providing utility-scale power plants all across South Korea. We also will use partners to unlock those new markets. You'll hear from Rick about carbon capture. Carbon capture will be made possible with the power of our technology teamed up with the right partner that can provide CO2 utilization and/or sequestration, better together, and last, how do we cover the world that can value our solutions? We do that through partners. Partners will increase our sales presence, it'll open new channels, and it'll give us the reach in the areas that we already aren't, so partners become a key enabler and a critical ecosystem and something we will invest in. Another important consideration as you look at our plans is the fact that we are starting from such a strong position of market leadership. Worldwide, we have more than a third of the stationary power fuel cell market. In the US, KR said it, we have 80% of that market, and we have a very similar market share in South Korea. This is our intention. This is how we will look at new markets like Europe, which Tim will talk about. We will lead. We will win. Second, we have such a strong competitive advantage with our technology. We're going to use that competitive advantage everywhere we can to drive profitable growth. Our energy conversion platform essentially does really two things really, really well. It converts molecules or fuels into electrons, and it takes electrons, clean electrons, and converts it into clean hydrogen molecules. No one else can bridge the gap between electrons and molecules in both directions the way Bloom can in the most efficient way possible. As we look at that energy transition, that is a key requirement. So much of our energy needs are right now powered by dirty fuels. This ability to think about that hyper-interchange between electrons and molecules becomes extraordinarily important, and again, no one does it better than us. Last, there's inherent advantages in our business and what we can provide to customers. As we look to larger industrial customers and we're behind their fence, they don't need manpower to manage their systems. There is no downtime to factor in. We're at five nines availability. For larger critical customers and key infrastructure, these benefits matter, and last, future-forward fuel flexibility. For customers that are hesitant about investing in a 15-year natural gas asset, they're not doing that with Bloom. We may start with natural gas, but immediately our entire fleet is already converted to responsibly sourced gas or low-leak methane gas. Second, they can transition to a cleaner fuel as the business drives them, as affordable fuels become available. They can blend their fuels, and they can do it now or they can do it tomorrow. Customers will not have stranded assets. These are just some of the core inherent competitive advantages that not only are strong and increasing with what's going on in the world around us, they're really, really defensible. It's a very sustained competitive advantage. It's the 20 years of maturing and building down and cost down and building this amazing team that is poising us for the growth for tomorrow, and it's incredibly exciting for all of us. We have organized our business into three key business segments. I talked about the simplicity of what we do. Our first business is power generation, molecules into electrons. In this business, we provide microgrids, we provide primary power, we provide waste-to-energy solutions, which I'll talk about in a moment, and we provide utility-scale power. That's what we have in South Korea, mini power plants deployed on power towers, as you would have seen over the technology showcase. This is a monster market. It's over a $1 trillion market. And when we put our plans together, we're going after a very small sliver of that market, and we're going to do it in a way that we are very selective to best utilize our resource and our partner resources. Our next business, hydrogen carbon capture, these are our net-zero businesses now. We have extraordinary competitive advantage to exploit both in our highly efficient electrolyzer as well as our carbon capture capability with partners. No one can really beat us on either of those fronts when you look at the sheer economics, and we are at the ground floor. As the world starts adopting these net-zero technologies, we are right there. And last, our marine business. This is a business driven by the IMO, or International Maritime Organization, ambitious goals for decarbonization. Through partnerships like with Chantiers de l'Atlantique, we are at the forefront of the marine industry showcasing, "Here's how you can decarbonize. Here's the way." As Tim will tell you, it's not the fastest-moving industry, but it's a great industry for us to help make a market. So with that, I wanted to share a little bit of going back in time. Greg mentioned our last analyst day was December 20th of 2020. I shared a roadmap, which you're seeing here, exactly like this, no changes. And in this roadmap, we just wanted to share with you a few milestones, both from a market and a product standpoint, to let you know, "Here's how we're going to define success." And what I want to share with you is we are well on our way. In many of these categories, what I'm most excited about is not only have we built this extraordinarily solid plan, but we've built an absolute team of rock stars. And there's a few with us that are here today and many more that you didn't get to see today and may have been over at the technology showcase. The only change that I would acknowledge from last year is a change in strategy in U.S. C&I or in the U.S. state approach. We used to look at the market a little bit more transactionally. We said, "The easiest place to sell is when we're way cheaper than the grid," so we're going to keep unlocking those states and making life easy and sell that way, and we've really changed our approach. We now have a very focused vertical sales approach. We have teams that are leading semiconductors, teams that lead healthcare, teams that are leading advanced manufacturing, teams that would lead data centers. We have a team leading oil and gas. The reason for this is value selling. Greg mentioned it. We are moving from a transactional environment to value. You need to move to value selling when we're selling the three combinations of resiliency, sustainability, and predictability. You need to be able to speak with everyone at a more executive level, and we need to land and expand, and you land and expand by being customer intimate and knowing your customer. So the people in Billy Brooks' organization that's with us today, their job is to know that customer, know their vertical, build a strong customer base, and build upon that and cultivate that over time. Partners will augment what they do, and that's how we'll win. Naturally, we'll go into more states. In our waste-to-energy segment, which I'll talk about next, we are naturally being pulled into different states. Many of our customers in the segments that I just referenced, they're multi-jurisdictional, so they will naturally have us go through the whole portfolio. So if you hear nothing else, we're very vertically focused. We're going after the cream of the crop. We're relying on partners, and we're value selling. Okay, let's take a look and look at power generation a little bit deeper. Again, this monster trillion-dollar market. You heard a little bit about how we're going after it in the United States. We see very much replicating that similar playbook in Europe, which Tim will talk about. This market is absolutely driven by major tailwinds in electrification, increasing capacity, and the need for predictability. We're estimating that in the state of New York, if you look at the filings that are already filed and will file, New York City or New York State of New York customers will be paying over $0.25 a kilowatt-hour by 2031. Electricity rates are going to far outpace any form of natural gas increases that Greg talked about. One of the more immediate benefits that's really driving our business that's worth my spending a little bit of time is this time-to-power concept, which is in our predictability category. We have customers, and I have one case study that already had a deployment with us in the state of California. They wanted to expand their operation. Their business was dependent upon it, and they came to Bloom because their utility wasn't able to deliver power in any reasonable sort of time. It would have been over two years. So by working with Bloom, from the moment we had that order, we converted that to power on in nine months, and it was a significant-size installation. This is happening to us every day right now. There's a lot of potential U.S. increase in manufacturing if you look at what's going on in policy. The reality is there's a big business boom of a lot of capacity in places in the world and the country that aren't as obvious. It's forcing us to really think about our business model a little bit differently. How can we be really quick to adapt and meet the market needs of customers that need power now? This time-to-power, number one. Number two, how can we ensure our systems are super easy to just drop in? So if you missed it, Joe Tovey was talking about our packaged energy servers. Essentially, how do we bundle our servers with as much of the piping and the wiring as possible so you literally forklift it in, drop it in, hook it up, and go? Of course, nothing's quite that easy, but essentially you get the idea. It limits the permitting needs that are required when you're not pouring concrete and allows us to really accelerate the time-to-power. So again, a big business driver. It's just important to note that with our value proposition, at any moment in time, the winds of policy or the needs of the market are poising us to be really responsive. That's the resiliency inside Bloom that we're driving and that we're leading so that this factory can meet the needs of all of our customers. With that, I will also turn to one more segment of power generation before we leave this market, and it's waste-to-Energy. Chuck Moesta, who's not here today, heads this business for us. He has over 30 years of experience in environmental and wastewater markets. He's actually at the Biogas America's show, and I hope he's booking some orders. We'll check in later. In this business, it's really unlocking a selling motion into the municipals, into landfills, wastewaters. If you've seen a recent announcement with Fayetteville Public Works, this is an interesting one. They're actually taking swine gas along with landfill, along with wastewater in North Carolina, by the way. It's Fayetteville, North Carolina, and creating resilient electricity. This kills more than a few birds with one stone. They meet a regulatory constraint of flaring biomethane, so they eliminate that need. They're also able then to provide critical electricity in the city that they need it. So for them, it's a great way to eliminate methane in the environment, not flare the methane as well, and provide resilient electricity. What we love about this is it's a very replicatable solution. One wastewater organization or one landfill organization or one municipal, they follow what each other do for best practices. So it's our job to continue to make each one of these kinds of customers a showcase, and where one is, many will follow. The other side of waste-to-energy is in renewable fuels. Think sustainable aviation fuel or renewable natural gas. We all know there's a shortage of these renewable fuels in many markets and certainly in the US. Developers are scrambling to put new plants together. It's a very energy-intensive process. And the name of the game for a renewable fuel is its carbon intensity. And on average, we have less emissions than 18 or by 18% less emissions than an average anywhere on the grid. So by being able to use our servers in those greenfield developments, we lower the carbon intensity score. They have a more competitive product. So we're working with developers across the country. And again, there is no state-based constraint on these kinds of developments. So we're very excited about that. As I leave this power generation topic, I just want to leave you with a few points. It's a trillion-dollar market. There are way more tailwinds than there are headwinds in the future. We have an opportunity to take our competitive advantage and a very smart market strategy and more than exploit the market. And again, we're really excited about it. So with that, I will leave you. Thank you. Good morning, everyone. It's so energizing to be here with all of you after what we've gone through for the last few years. Isn't it wonderful to just have the opportunity to be together, to have dinner together, to have conversations like this? It's really wonderful. I just want to thank all of you for making the journey from wherever you came to come here and spend some of your valuable time with us, hear our story, and ask some questions, get to know us a little bit better. So, let me tell, I joined Bloom in January of this year after 31 years at Air Products. My last several years were developing very, very large hydrogen and syngas projects in the Americas. Bolted onto many of those projects were clean ammonia and renewable diesel. When I looked at Bloom's platform, and you've heard Sharelynn and KR and Greg talk about platform, and I'm going to talk about platform a lot, you look at the applicability of Bloom's platform to a high-temperature process that's going to be used to synthesize and manufacture all of these fuels of the future, whether it's low-carbon-intensity ammonia, whether it's methanol, renewable fuels like sustainable aviation fuel, renewable diesel, or even hydrogen itself. Our platform, because it runs at a high temperature, is the most efficient way to make clean hydrogen from electricity. We'll talk a little bit more about that, but all of those processes run at high temperatures. We integrate extraordinarily well, and it gives us a 15%-30% advantage over competing electrolyzer technologies. The technology platform and its applicability to the growth of these fuels of the future is why I came to Bloom. I'm really excited to be here today to talk to you not just about hydrogen, but also carbon capture. Personally, I believe that in the long run, by 2050, there will be a trend of everything will be electrified or everything will be fueled by hydrogen. There's a long time between now and 2050. Natural gas, particularly in regions where it's abundant, like the country we're sitting in right now or our neighbors to the north and south, is going to play an incredibly important role in continuing to supply mankind's energy needs, particularly considering the abundant sequestration geology that we're blessed with and we understand quite well from decades of oil and gas exploration. I'm going to talk to you about hydrogen. I'm going to talk to you about carbon capture as soon as the slide advances. I spoke about we have the most efficient electrolysis technology. Probably all of us have really tried hard to forget our high school chemistry classes, our high school physics classes, our college thermodynamics classes. I know I have. But it's a matter of simple chemistry and simple thermodynamics. Our device runs at 800 degrees Celsius, give or take. Because it runs at such a high temperature, we need to input less electricity to produce a kilogram, a normal cubic meter, a standard cubic foot of hydrogen than low-temperature electrolysis technologies like PEM and alkaline, and I really mentioned earlier, one of the things that best suits our platform are the synthesis of these fuels of the future. And right now, we don't need to make any bets as to whether methanol is going to succeed over ammonia, or is it going to be renewable diesel made from beef tallow and used cooking oil, or is it going to be sustainable aviation fuel, or is it going to be the hydrogen molecule itself? Because our technology is the best route to hydrogen compared to any other way of doing this if you want to do it truly cleanly. I spoke about carbon capture. I've done some carbon capture projects in my past life. I did a very, very large one in Louisiana, also one in Edmonton, Alberta. Our technology already, all of the 700 megawatts of installed base that we have out there in power generation already emits an annual gas stream, which is very, very rich in carbon dioxide. Further on in the presentation, I'm going to talk about how this proven technology, which is in every device that we've built and all the devices we're going to be built, can be very, very simply modified with some piping connections so that we can work with partners, as Sharelynn talked about, to either use that carbon dioxide for beneficial purposes like food and beverage or to sequester that carbon dioxide and produce 24/7 zero-carbon intensity power, which is a value in many industries today. I think ultimately, in the long term, we all acknowledge we're going to need 24/7 zero-carbon power to limit temperature rise to hopefully one and a half degrees. Just a further thought on that. I don't know how many of you may have gone to CERAWeek this year and listened to Secretary Granholm and Special Environmental Envoy Kerry speak about the challenges of holding one and a half degrees Celsius and how we're going to need all of these technologies. I would have to say it was wonderful, A, to be back at CERAWeek and bond with the community and the energy industry again. But you would have been not terribly mistaken to think that it was a hydrogen and carbon capture conference, not necessarily a global energy conference. And the last CERAWeek that I went to, I guess, was 2019. Yes, hydrogen's important. But people that were talking to us about hydrogen at that time, what did they want to know? And what did they want in hydrogen? They wanted hydrogen that was cheap, and they wanted hydrogen that was reliable. Why? Because they're running barrels through their refinery or they're making ammonia. In the last two years, our collective consciousness has changed, and now every conversation with respect to hydrogen is, how are you making the hydrogen? And what is the environmental footprint of that hydrogen production? And if it's electrolysis, how efficient is it? Where's the electricity coming from? If it's so-called blue hydrogen, right, where you start with natural gas and you sequester the CO2, how are you doing that? Can you get a Class VI well permit? What does the geology look like? Are you certain that that hydrogen, once you shove it 7,000 feet underground, is actually going to stay there, right? And what safeguards are you putting in place to do that? So it's really fascinating to me, and I'll bring it back to carbon capture before I move on to the slide. With the 45Q tax credit, even at the current level of $50 a ton, we are very, very close, and I'll walk through economics, to parity with combined cycle with annual gas carbon capture from our fuel cell if it's sequestered. And that's, again, for 24/7 zero-carbon intensity power that doesn't depend on if the sun's shining, if the wind's blowing, or there was a lot of snow the winter before that's going to melt and have robust flow in streams. Really, this slide should say, why are we confident that with our technology, we're going to meet or exceed what we have all looked at in terms of a forecast for our market penetration in hydrogen and our growth in hydrogen? What I would pose to this group is that three-quarters of the applications for low-carbon intensity hydrogen, clean hydrogen. I'll use colors. I'm not personally in favor of using colors, but fine green or pink hydrogen. Three-quarters of the applications are high-temperature applications. Our device is a high-temperature device. The customers, our hosts, the people that are going to buy hydrogen from us that are running exothermic processes. And again, you know high school chemistry, we've all tried to forget that. But processes that give off heat in addition to making a molecule of renewable diesel or a molecule of ammonia. We can take the value of that heat quite simply and not feed water into our electrolyzer, as every electrolyzer company does, and we can take water. But if we're able to feed steam into our electrolyzer, really, to me, that is the game changer. That gives us a specific power, again, kilowatt-hours of electric energy per kilogram of hydrogen that's 30% or more efficient than competing technologies, than low-temperature technologies. All of these segments, I said it, the fuels of the future, sustainable aviation fuel, renewable diesel, ammonia, we don't care what wins. We're hedged to all of these. Whatever wins, we have the killer application to deliver it. Even sort of historically sleepy segments, steel production, steel making isn't going anywhere. If you look at all of the infrastructure in this country and around the world that needs to be replaced, zero-carbon steel is going to be trading at a premium in the future. Similarly, other hard-to-decarbonize segments like cement, the cement industry very focused in looking at this. You can deal with a third of the challenge of producing cement from clinker with hydrogen, using hydrogen as a fuel, as opposed to really, really dirty fuels like no kidding, like bunker, scrap tires, petcoke. I mean, you can imagine the combustion CO2 footprint, and not just the CO2 footprint, right? All the other nasties that go up the stack when you're using waste fuels like that. So three-quarters of the applications we're dialed in for. And these are all applications that are going to remain where they are or most likely going to grow. Finally, one more thought on this slide. Everybody's got their own forecast of how much hydrogen's going to be required, right? I like the IEA's one. Bloom is now a member of the Global Hydrogen Council. Actually, there's a meeting of the Global Hydrogen Council next week in Washington, DC. They just issued a new forecast. Of course, it's going up. Unless you have a crystal ball, you don't know what it's going to be, but it's going to be tremendously large. We're very well positioned to capture it. We are more efficient than low-temperature technologies. This is a view based on today's costs. Three-quarters of the cost of making clean hydrogen is the electricity itself. Our efficiency, if we're fed with steam, is under 40 kilowatt-hours per kilogram. That casts a longer shadow than every other component in the equation. I'm not saying capital cost isn't important. I'm not saying O&M cost isn't important. I'm not saying that any other facet, whether it's degradation or efficiency. By the way, during our stack lifetime, unlike PEM and alkaline, we don't lose capacity. We don't lose efficiency. We're level steady eddy during the life of the analysis. But no matter how you slice it, efficiency carries the day. And whether it's with steam, as I spoke of, if you're integrating with a high-temperature customer process, or we're fed with water, because not every process on the planet is a high-temperature process, we're markedly better than competing technologies like PEM and alkaline. And I'll just riff for a moment on something that Greg said. We also don't have iridium in our box. We also don't have platinum in our box. Everything in there is not a rare earth metal. It's nothing that we don't have difficulty finding. It's all dual-sourced. And to the best of my knowledge, Satish, I don't think any of it comes from Russia or Ukraine. Thank you. So we talked about efficiency. So I'm not going to beat that to death any further. Proven performance. We've got 700 megawatts of fuel cells out there operating today. It's going to be a gigawatt by the end of the calendar year. If you were to do electrolysis equivalent of that installed base, that's almost two and a half gigawatts. Manufacturing platform. I hope everyone got the opportunity to walk around and see this beautiful factory that's just been built, all the tools and equipment that's moving in. The manufacturing platform for electrolysis is identical to the manufacturing platform for fuel cell, which Bloom had been practicing for 15 years. The factory is flexible. The order book in a given month, if it's 100% fuel cell, that's what the factory builds. If the next week we sell an electrolyzer to an ammonia producer and we need to adjust and say, "Okay, we're going to cram an electrolyzer into it," it's real-time adjustable. It's the same materials. It's the same platform. It's the same inks. All of the know-how, all of the IP that has been developed with respect to fuel cell is directly applicable to electrolysis. And finally, I come from the big hydrogen world. Our modular approach in terms of what it offers the customer in terms of we speak about it in electricity terms and electrons as resiliency. In the molecule world, we think of that as availability. And so if you're building a steam reformer, if you're building an autothermal reformer, you're very happy to get 97% or 98% availability. With our modular architecture and a number of stacks all operating in parallel, as a minimum, you can expect two nines availability, but our fuel cell experience has been five nines availability, and that just does not exist in the process plant world. It's really, really a compelling story. Where are we? So we launched the product in 2021. We have done a series of small-scale demonstrations and happy to speak in some more detail about that with anyone in the room. We are now in the process of launching 10-megawatt demonstrations. And actually, we just announced fortuitously this morning that we're able to reach agreement with an ammonia producer, LSB Industries. We also are talking to other customers in other segments, such as refining and renewable fuels and the nuclear industry, who are all focused on getting to clean hydrogen. As we get through that in 2022, we deploy those units in late 2022, early 2023. Really, that's like the final set of pre-production cars that go down the line. And we work the bugs out, and then we're ready for large orders starting in the second half of 2023. And my view personally is that the world will be ready for that with us because they'll be able to go, look, see, touch, feel, see the efficiency, talk to the operators, understand the resiliency, understand the availability. And that is going to be a big differentiator for us, and it's going to supercharge our efforts in this segment. I'll spend some time on carbon capture. What I'd like you to think about with respect to Bloom and carbon capture compared to conventional power production. So for example, with a combined cycle gas turbine, if you look at the exhaust of a combined cycle gas turbine compared to the exhaust that comes out of our fuel cell, much higher CO2 concentration, right? We're over 50% CO2 in the exhaust. In a combined cycle facility, that might be 4%. Much less mass flow because we don't have all that nitrogen that's just going along for the ride. So what does that mean? That means if you're trying to get to CO2 that you can do something with and take economic advantage of it, whether it's sequestration with a $50 45Q or, God willing, in the future, an $85 45Q, or you're looking to commercialize it and do something with it, it's much less energy to purify it because you're starting with a much higher concentration of CO2. It's also little silly things in the EPC, right? Like the pipes are a lot smaller. So you also put a lot less CapEx into the ground. Getting from our 52% CO2 stream that comes out of the exhaust of the box, about 40% is also water. Really easy to knock that water out. Dehydration, very, very mature technology. The other technologies to go to 95% or 99% or greater that's sequesterable or usable as industrial-grade CO2 for food and beverage or heat treating or other applications, all very mature technologies, very well-known, practiced for decades. These are all things mankind knows how to do. Evidently, it's not what I know how to do. Advance the clicker here. I spoke about combined cycle, dirty power, gray power, the power we're all probably using in our homes and businesses, $0.06 a kilowatt-hour. Now that's subject to $3 gas, yada, yada, yada. Levelized. If you were to try and capture the exhaust of that and sequester it and get the 45Q benefit, that $0.06/kWh jumps to about $0.10/kWh. With Bloom, because of the concentration in CO2 in our exhaust and the ease of making that sequesterable, our number is very, very close, $0.065, and again, that's for 24/7 green power. I guess it'd be blue power. 24/7 carbon-free power. How about that? We'll settle on that as a compromise. It's much simpler because we're starting with a higher purity stream. It's very scalable. We can fit 100 MW of power generation in about 1 acre, and what does that unlock? That unlocks very low barriers to siting, right? What do you need to be near in order to site this and do carbon capture? Really? You either need to be near the hole in the ground or a pipeline to the hole in the ground to sequestration. But from a placement of these assets standpoint, because we have no NOx, no SOx, no particulates, it's quiet. They're actually pretty good-looking, right? I think you guys probably saw what the boxes look like. I mean, I think they're aesthetically pleasing. Very low barriers to siting. Two more points. Who are we going to sell this stuff to, right? So the people that are coming to us now and asking us questions about this today are people that are manufacturing products that are traded on their carbon intensity. Sharelynn talked about renewable diesel. Even our base platform without carbon capture is significantly more efficient than the grid from a CO2 perspective. If you add carbon capture and you're able to take the benefit of the 45Q into your economic calculation, you get to zero carbon power. And then your ammonia, your renewable diesel, your SAF, your methanol, you can sell it at a much higher premium. And Greg said it, Sharelynn said it, and now we're value selling. We're not just competing against a grid. We can put some of that margin in our pocket. I think ultimately it would be hard for any of us to disagree that we all need 24/7 zero carbon power. That's a fact. With Bloom, that can be done economically. And again, we don't depend on is the sun shining, is the wind blowing, did it snow last winter, can you get a nuclear permit. Thank you very much. Good morning, everybody. It's great to see all of you, and I've really enjoyed our conversations last night at both the cocktail hour and dinner. So I wanted to start by just talking a little bit about myself and my journey and how I got to Bloom. I joined Bloom at the beginning of last year, and I like to tell people that I was happily retired from GE after working at GE 33 years and really not looking for work. But I got a call, and they said, "Hey, we're moving into the marine space, and we need someone to help lead it." My last role at GE was leading the GE marine business out of London. And that really intrigued me because having worked in the marine space, it was apparent that the marine industry is facing a huge challenge in terms of weaning itself off of heavy fuel oil. Rick alluded to it as waste energy, that waste products are the worst thing that you can burn. And not just CO2, but heavy sulfur content and heavy metals. It's just really not a sustainable fuel for the marine industry. And everybody now recognizes that. And I thought I'd been following Bloom for a while, and I thought, "Wow, this is really intriguing," because I was very familiar with the incumbents in the marine space, which are the internal combustion engine providers. And what we differentiate in terms of our fuel cell is the fact that we have no NOx, SOx, particulate matter, or a negligible methane slip. We are also much more efficient, 20%-30% more efficient than internal combustion engines. And that's important because that means you have to load less fuel on a vessel. And then probably the most important thing in talking to customers is future-proofing their vessel. There has been a very large and quick adoption of LNG over the recent years, but there's a lot of debate and question as to what is the life of LNG as a marine fuel. How long can we continue to use it given that it still is a fossil fuel? And it's really uncertain in terms of where the marine industry will ultimately go in terms of net-zero carbon fuels, whether it be green methanol or whether it be ammonia. What I think is probably our biggest differentiator is our platform can run today on LNG. Today, the amount of power needed for LNG vessels is about four to five gigawatts per year over this 10-year period that we're looking at. We also are positioned to run on wherever the market goes in terms of net zero carbon fuels. Whether that be green methanol, ammonia, or some other net zero carbon fuel, we are going to be positioned, and we will make the investment when required so that we can run off of any fuel wherever the market goes. Let me talk a little bit about our progress. Many of you that have been following Bloom probably remember that we signed a joint development agreement with Samsung about two years ago. This was kind of our first foray. This happened before I started, but it was Bloom's first foray into marine. We've done a tremendous amount of engineering work to basically, with SHI, develop a fully powered SOFC vessel, which was really interesting work. Carl and his team put a lot of man hours into that. But the concern or the problem is that the marine industry is very conservative, and they are very much a show-me industry. The likelihood of launching in the near term a fully powered SOFC vessel, particularly on something the size of an LNG carrier, is probably pretty small. So we made a pivot beginning of last year, and we said, "Hey, let's explore the cruise market." And we started to get tremendous feedback from our discussions with the cruise market and saying, "Hey, what we really like about fuel cells is we could potentially run our hotel loads when we're in port to avoid having any sort of particulate matter emissions when they go to some of these more pristine destinations." And we think that's a terrific application for fuel cells. So we have made really fast progress since the beginning of last year. We completed the design of the marine power module, which you saw today. We have completed the testing, including the tilt test that you saw at the technology showcase today. We signed a contract with Chantier de l'Atlantique in June of last year. That's a 150-kilowatt system that will go on a World Europa MSC vessel. That equipment is already in France. It'll be installed in July, August of this year, and it will be on the water in the third quarter of this year. So really moving fast and rapidly. And we think that that project with Chantier is going to be a huge catalyst in terms of gaining recognition in the marine industry that fuel cells are a very viable power source as an alternative to the incumbents. The other thing we're doing is we're working with Chantier and a number of other cruise operators on doing what I'll call the next-generation design, which would be a 1-megawatt design. Our intent is to have that completed and ready for shipment in 2023. And then the follow-on in terms of a product plan would get to 10 megawatts. So if you see a large cruise ship, typically their hotel loads in terms of the power requirement is at that sort of power level, 10 megawatts. We're not abandoning the other segments in terms of freight-carrying vessels. I had a meeting earlier this week with one of the oil majors. They are very interested in replacing a one- to five-megawatt generator on some of their tanker ships. And we're also working with a number of LNG carrier operators to do something similar to replace generators. So we think on the freight-carrying vessel side, similar to the cruise side, it's going to be a partial power application. Could we do something like a fully powered vessel in the future? Yeah, it's possible, but it would probably require a hybrid-type approach, potentially marrying our system with either a battery or potentially a reciprocating solution as well. So, really good progress, moving fast on the marine side. Let me switch hats here. Now, I'm going to talk a little bit about my second role, which is the international job. I got a call from KR, I guess it was probably November of last year, and said, "Hey, I'd like you to do the international role in your spare time." I said, "Sure, why not? That sounds great." And actually, I'm really excited about this because when you look at what we've accomplished in 20 years, a lot of good penetration in the United States, five years of great success in terms of building up South Korea. But when you look beyond that, it's a white space, right? And we don't think that South Korea was a unique opportunity. We think there's many more South Koreas out there. As K.R. said, we are laser-focused on Europe right now. Why is that? Europe, when it comes to energy security, decarbonization, and potential need for resilient alternate power, there is no other market that has a greater need. With the Ukrainian crisis, the whole energy equation and supply chain has been completely disrupted. The way governments are thinking about policy has changed dramatically. As an example, Germany, as you know, had decided some time back to wean itself from nuclear and coal power, so heavily reliant on gas. It is impossible for them to not have an economy that runs on gas. About 50% of their households, 50% of their industry run on gas. What they're going to have to do, and I'm sure you're aware of this through the news, is they're going to have to find alternative suppliers of gas. What does that mean? Prices are likely going to be higher. What does that require? It requires more efficient technologies like Bloom fuel cells, particularly in a combined heat and power sort of system. The second thing is reliability and resiliency. Even a few months ago, before the Ukrainian crisis, you go talk to people in Europe about fuel cells, and we say, "Hey, we're a resilient, reliable power. Your grid goes down. We're always on, and we're there for you." And they say, "We don't really have that problem in Europe." But now, with the Ukrainian crisis, all of the solar and wind projects are being accelerated. And customers are starting to say, "We don't really know if the future is going to be the same as the past," because the grid now, in terms of where the generation is happening, the scope of that is changing dramatically. It's starting to put a question mark: will we have resilient power off the grid going forward? The last thing I would say is that there is a number of places in Europe where Sharelynn talked about time-to-power, where if you want to go put a data center in, as an example, Ireland, you might have a three- to seven-year wait. We're having a number of those discussions throughout Europe where either because of lack of power generation or because of distribution shortfalls, a Bloom solution looks extremely attractive. Let me tell you specifically what we are doing. We got our first win in Italy in April of this year. It's a 1-megawatt system. That system is actually already in Italy and being set up. We're going to go through a trial period of 12 months with an opportunity to expand that to a 15-megawatt system that would be a combined heat and power or CHP system. That's our first in Europe. We think there's a lot to follow. We're working with a partner in Italy that we think, like this customer, is very interested in future-proofing their system as Snam looks to bring hydrogen into the region in this part of Italy. Let me talk a little bit about the UK. We are working with Conrad Energy. We had an announcement probably the end of last year where we're working with Conrad, who's interested in doing behind-the-meter resilient energy solutions in the UK. We are working on a number of deals, including Teledata, that I think was mentioned in the announcement. Conrad Energy has a broad portfolio of energy projects, and their interest is in also including Bloom fuel cell platforms for future-proofing needs. Let me go back to Germany for a second. We've got a lot of activity going on in Germany. We've got an 18-megawatt project that we're working on. It's a data center project, CHP. Again, this is a grid access issue that's really driving the value proposition, but our cost of electricity is very competitive with the grid. And then we are working also with a partner in Germany where we're working on a number of smaller systems. And similar to the system in Italy, these first-phase systems, once we prove our performance in terms of efficiency and electricity output, we're going to be really well positioned for another 30 megawatts of power just for those four opportunities. In all of these markets, we are developing significant pipelines. All of that that I've talked about so far is SOFCs. As you're probably aware, hydrogen is also top of mind in European countries. Spain is looking to be a hydrogen leader in Europe. We have a discussion underway with a partner to position ourselves in Spain. Policies like in the U.K., they just announced two months ago that they're upping their investment in hydrogen from five gigawatts to 10 gigawatts by 2030. So we're in discussions with potential partners in the U.K. Same goes in France and Germany. So a lot of activity. I'm extremely bullish on Europe. As KR said, I'm going to be moving there with my family. I can't wait to be back in the marketplace and be on the ground because I think it's really going to be a tremendous opportunity for us. So listen, thanks for listening. I think we're going to turn it over to Greg and the capacity and cost panel. Thanks again. We have a long working history with Bloom. Our distributed energy team has been working with Bloom for many years and has installed over 100 fuel cells in our operations as part of the working relationship with Bloom. In 2020, we installed two major installations of Bloom Energy Servers at our Pico Rivera and Monterey Park facilities. These help to take these two major operational facilities of SoCal Gas's essentially off-grid and ensuring resiliency for the 22 million customers that SoCal Gas serves in Southern California. And most recently, SoCal Gas was working with Bloom on blending hydrogen into the natural gas stream at Caltech. And the purpose of this is really to look at ways to leverage the existing gas system to support our clean energy transition. Bloom Energy is a partner of choice for the Southern California Gas Company. SoCal Gas has set a mission to build the cleanest, safest, and most innovative energy company in America, and Bloom Energy servers are cutting-edge technology, providing resiliency and clean and safe energy to our facilities. Resiliency is really important for SoCal Gas, and we are using Bloom Energy servers at our two largest facilities to put them essentially off-grid, and I think the third reason that Bloom is a partner of choice for SoCal Gas is the people. KR and the team he has surrounding them are very focused on shaping the future, and we enjoy that working relationship with KR and his team. We are very excited to be working with Bloom on the Angeles Link. Angeles Link is SoCal Gas's proposal to build a green hydrogen pipeline system to support the Los Angeles Basin. Angeles Link has the potential to be transformative for energy and a cornerstone for the hydrogen economy here in California and in particular in Southern California. We have worked with Bloom for many years, and the opportunity of continuing to work with Bloom in the context of Angeles Link with their technologies around electrolyzers as well as fuel cells makes it very exciting both for SoCal Gas and Bloom and for what this can mean for our clean energy future. This should be fun. Welcome to my world. Listen, let me start, Glen, with you. Two years and two months ago, we were into shelter-in-place here in this county. Restrictions are easing, but there still risks remain. We've been pretty clear with folks. We haven't missed a day of production through that period. Can you talk about how we've been able to achieve that? Yeah, sure. I was looking for some wood to touch while he's doing that and this sort of thing. So yeah, I put it down to three things: people, process, and execution, and innovation. And some people may be surprised you're talking about innovation and how you develop innovation. So let me talk to you about what really happened. Just over two years ago, the world changed on all of us. We thought things were going to get better and so on. As the world was going into lockdown in the Bay Area, we had a team here that overnight, they basically reimaged, reengineered whatever term you want to do, and redesigned our whole production process. Some of the guys that walked around, Brad Fields and Kiran Van, literally worked through with a group and the EH&S team. We redesigned our whole factory here so that there was no job that required two people to be within six feet of each other. And so there was some heavy lifting stuff. We brought new equipment in and so on. And then we also restructured the whole factory flow so that no two people had to cross over each other as well. And then we masked up straight away. So that enabled us to continue our 24/7 operation. But on top of that, at that time, at that stage, we were also reaching out and helping the local community. We believe in helping out others. So Joe Tovey, who was mentioned earlier on, also at the same time, overnight set up a ventilator refurbishment program in partnership with Stanford as well. And as that work moved forward, we actually also extended that partnership. I think KR picked up the phone to the head of Stanford, and we actually put on a testing laboratory. A mobile one was put onto our site. So we were able to test everybody within hours, get results, and then maintain safety for our people at the same time of restructuring and reengineering what we did as well. That's enabled us to keep operating 24/7 throughout this whole area. Let me add something around what are the things around the people. Sometimes you really learn a lot about people when you see them under pressure. The organization actually rose across the whole organization, rose to the occasion. We actually looked at our employees. We're testing on site, and our culture is around trust and respect as well. And so therefore, if people didn't feel well and felt they had symptoms, we would actually pay for them. They stayed at home. We would rather that they were safe. And so we made them to be safe. And then if anything happened with the testing, we could literally put protocols in place straight away, clean the factory, and so on, and isolate the issue. So those sort of things really helped. But also, we're going to talk a little bit about the supply chain team, the miracles that the supply chain team have done under pressure. But I want to give you another example of something that we were able to do that I don't think other companies are able to do because one of my other roles is a head of service as well. Satish talked a bit about, well, didn't talk, he signaled, "Hey, I'm going to have trouble with this part. I'm working what I can to try and get this part." We were able with our service organization, who uses a portion of new parts, to actually work with our engineering team and develop a new recovery process and refurbish parts. We were able to put those refurbished parts into our service organization and reduce the demand that we needed on parts for service, which enabled us to meet our revenue goals as well. Being able to do that flexibility, reengineer, redesign, and this sort of thing has enabled us to actually deliver and keep the factory running. That's great. That's great. Thanks, Glen. Satish, I love that answer. Yeah. Toilet paper shortages, baby formula shortages, a lot of things have been in high demand. You've been able to supply the parts to keep the factories going over those two-plus years. How? Before we get to how, I really want to acknowledge my team. They've been phenomenal. Without them, all this would not be possible. I have no more hair to lose, so it's their turn now. Secondly, the cross-functional teams in Bloom, phenomenal support. And the last, but not the least, the supply partners we have. Without their support, we wouldn't have done what we have done. I think what we did was a combination of being proactive and also being nimble and demonstrate some innovation during this process. I'll give you an example. When you order pizza, you get a pizza. But what you don't know is that pizza box needs to be made with a food-grade paper. So you forget about the pizza box. You say, "Why am I not getting my pizza?" So what we did was, when COVID started hitting, we went and mapped our entire supply chain, not just for the tier-one suppliers, but we went down to tier-two and tier-three suppliers, like the food-grade paper. In our case, it was the resins that were used to make connectors. It was brazing paste that was used to braze our hot boxes, so we mapped the entire supply chain. We found out where the choke points were, then we did something really creative. Bloom supports a lot of hospitals in the U.S. So we sent letters out to all our suppliers that we support emergency services, and they could use this letter to show their local governments because we had to secure supply. There were two parts to this problem. One is how do you make your suppliers produce parts, and the second one was how to bring the parts into the U.S. or where our manufacturing was. So this letter actually helped in many cases where our suppliers were able to keep their factories running, bring people in. Of course, they did testing. Everything was done safely. But it did help quite a bit to us. Then the second part was to bring parts here. We did many things, one of which was courtesy of Narcos TV show. When Shenzhen was shutting down, we put parts on a truck and brought it into Hong Kong. The guy was just driving around in Hong Kong till we found a container to put those parts on and bring into the U.S., right? So we actually changed our entire logistics footprint. There is something we call cross-docking. A lot of people don't use it in the modern day, which basically maps the ports in the U.S. for congestion, and you find a port where there is less congestion, and you go dock your ships there, pay a little bit extra, like what we did. Most of our parts for the Sunnyvale factories come into L.A. Port or Oakland Port, but then we cross-docked it all the way in Baltimore and trucked the parts from Baltimore here because Baltimore Port didn't have a lot of congestion, so that was one innovation we demonstrated. Second is we created something called virtual hubs with the help of FedEx and our logistics partners where we consolidate shipments from the same country. Normally, suppliers don't work together to put all their parts into one container to ship to the U.S. We enabled that by creating a virtual hub in Taiwan, in India, and in Hong Kong where we consolidated, so we had predictability of parts coming into the U.S., then, of course, we found a lot of alternate sources because tier-two and tier-three, they're available. They're just not qualified, so with the help of the engineering team and cross-functional teams, we did qualify a lot of alternate materials. Now, the flip side of this is the electronic components. They're very standard. They're not unique to us. This is where I think my background in semiconductors helped, where typically electronic components are spread around geographically. When you look at Germany, they're very strong in automobile. If you really want automobile-grade parts, if you try to go find that in Southeast Asia, you usually don't find them. So we had boots on the ground in Germany, in Belgrade, to source these parts because even the automobile guys were struggling. They didn't have matching parts to make the cars. So they had excess parts of something which they couldn't use. So we approached these distributors in Europe to get those parts. We changed our BOM not to just buy from direct sources, but also to buy from distribution and use them in our products. So it is a combination of all these strategies that actually helped. I'm proud of my team. We didn't have a single line stoppage for materials, touch wood. I'd make two points to add to that. First is it has come with some cost, those activities you have. And we've prioritized keeping the factories open and meeting demand for our customers for that. So that has come at some cost. I think your team's done an amazing job offsetting that. Thank you. You've had the advantage. I think Rick and I both refer to iridium and platinum. We don't have to source that. That's a precious metal, not a rare earth metal. So I just want to be clear on that. I didn't know that you let him give us any slack on our goals. No, no. I just want to say. Great. Hey, Carl. KR referred to it. Rick referred to it. We've got an efficiency advantage not only in the electrolyzer but in our fuel cell, hydrogen fuel cell as well. What are you guys thinking about what we could do with that efficiency benefit that we might not have talked about today? Sure. So looking at those two products, particularly when you combine them together, you can yield a relatively high round-trip efficiency. Just to explain round-trip efficiency in the energy world, think about a bank account. You put money in, you take money out, you earn a little interest. You get a little bit extra for storing your money there. The parallel to that is energy storage, except there's a kind of a negative twist to it where you put your energy in a bank, and when you take it out, it kind of costs you a little bit. Think about it as a negative interest checking account or savings account. Consequently, as the market looks at that, that amount of energy that is lost, that turns into an efficiency loss. That's round-trip efficiency. As it relates to the energy storage market, currently today, energy storage is most predominantly with battery systems, different-sized battery systems, most of it for short-term storage duration. That's an important note. However, because of our products and our platforms, it's becoming more and more apparent that hydrogen is going to be the next level of energy storage, particularly for long-term energy storage. And as you look at our different products, as everybody has pointed out and Greg has just mentioned, as I look at the pathway for development of our solid oxide electrolyzer, because of that high temperature (and Rick spoke to this a little bit), there's a pathway for development to get up into about the 87th percentile of efficiency for that electrolyzer. Conversely, as I take hydrogen energy in my SOFC and I convert that to usable energy in a fuel cell, I can get up to 95% total efficiency out of the SOFC for hydrogen. Now, when I take those two together and I put them in a round-trip sense, I get to about 82%. I start at 87. I get 95% of that, about 82%. That's rivaling what battery storage is doing today, and you get the benefit of it being a long-term strategy. Conversely, as you go look at some of the other technologies that are out there, particularly as you talk about PEM, their round-trip efficiency is going to be about 35%. That means you have to pay 65% to get your money back. The only thing worse than that is my wife's purse because I've stole my money, so as I look forward into our platform with the high temperature and our two main systems and their similarities, long-term energy storage is the way to go for Bloom. We see it as a core market. We can win it. That's great. That's great. Thanks, Carl. Glen, back to you. In one of your many duties, you run our service platform. We've committed to getting that to non-GAAP gross mar gin profitable. We've made a significant improvement to it last year. We're targeting profitability this year. Talk to us about how. Yeah. Strangely enough, it's a bit of a familiar theme. People, process execution, and innovation are the core things that we're driving. I'll split it up into two around the cost reduction and then the enablement of innovation to do that. If we look at the cost reduction, I think many of you got a chance to go around and look at the servers, look inside, look at a fuel cell module, talk a little bit about how the replacement time, two hours to get it sort of in and out and make a replacement. When we take that unit out, we take it back to our repair and overhaul. We have complete ownership of all of those units. And every single one is refurbished. And we recover about 97% either refurbishment or reuse 97% of the fuel cell module. And so we recover a lot of the parts. An example, when you looked at stacks and you've looked at columns and you see the ceramics down the side, we recover pretty much 100% of the ceramics that are put into a fuel cell. If you look at the stacks that you saw, we actually separate those stacks, recover the electrolyte. Those ICs go through the same line out there. And then they come back off, and then they go back in at a lower cost for us because we're not paying for the core IC, just the recovery cost. And then it's back into a hot box. We can take a hot box out of the field, turn it around in three weeks, restore a full five years' plus of life, and that's 60% of the cost to me for a new one. And we're constantly innovating and driving those improvements. So that's one thing that's keeping us. And last quarter alone, we reduced the price of a refurb unit by 2.9% the last quarter. So though there's the headwinds, still there on the new parts, and it is causing us difficulty in keeping our nose forward, we are still able to drive the cost down to meet the goals. The second part that really, really drives a big difference, again, is the innovation that we have. So I talk a little bit about my previous career. I was the head of global engineering for Hewlett-Packard, and I was also the chief quality officer for Hewlett-Packard. So my whole time, I supported every single business unit that was in the company. I never had access to the data and information that we do in Bloom, not even close. Even when you go into the data center area and stuff like that, incredible data and information that we've got, the instrumentation that's been put into the systems. And then the other beauty is being integrated into the company. I can bug the crap out of Carl and his team and so on around how can we look at innovation. So not only have we got an innovative product, we've got innovation through everything that we do throughout the whole company. I talked to you a little bit about manufacturing, but let me talk to you a little bit about service. We created a team that we got a great design. Design goes in the field. But those 700 sites that are out there, all those servers that are out there, we're capturing data back from them real-time. And so we're able to determine how to operate our equipment and optimize its performance in the field on an ongoing basis. And it's very interesting because the bigger we get, the faster we learn. You'd think it would be a reverse when you see larger and larger companies because we've got more of an installed base. I'm getting more information back. I'm learning more about how to manage the systems and operate the systems. So in conjunction with Carl and his team, we've found ways with our existing design to get more power out of them and to get more life in them. So we've taken the inherent design and driving controls, the way we manage fuel, the way we manage temperature, the way we manage current, etc., to get more life out, which means I replace less of them, which means its cost goes down on that alone. So you put all that together, it really is an end-to-end system that we have. It's enabling me to keep on track and make my commitment here. Great. Hey, Satish, just quickly, we talked a little bit about the past. How are you positioning your organization to support the future? The growth rates we've talked about, international, here, etc., how are you thinking about that? I think kind of our approach is three-pronged. One is to grow the existing supply base, right? We have significant growth trajectory in front of us. We have talked to the majority of our key suppliers, and they are investing significant amounts of money to increase the capacity. Secondly, during COVID, one of the proactive measures we did was when countries were shutting down, we issued a lot of risk-buy authorization to most of our suppliers to buy the raw materials in bulk. As they say, every challenge is an opportunity. What we found was if we can go directly to the mills, we can get preferential pricing and allocation. In the past, our volumes were not so big. Now, with these volumes, we have their mind share. We are in a much, much stronger position to negotiate better raw material pricing. So we are going to start contracts, long-term supply contracts with our raw material suppliers. And the last but not the least is we have to look at our supply chain footprint optimization going forward. Building a port in the U.S. and shipping all the way to Europe when the volumes are low probably makes sense. But if we have to, if the European market grows quite big, we probably will look at some joint ventures with some of our supply partners who already have infrastructure there. This is, again, scope expansion. It's motivation for them to grow with the company and also helps us to use our cash position better. So it's all these three strategies, Greg, that we're going to use to scale and support the growth. Great. We're going to need all the help. Got big growth numbers. Listen, I think what you heard today is that we've got a team here that is executing and continues to execute. We've got technology differentiation that we haven't yet even applied. And we have the opportunity to drive profitable growth. What I want you to take most from this discussion, why we had this round table, is these gentlemen lead teams of equal caliber, great caliber in order to help the company grow. And I just want to give you a sense of their great leadership skills and their command for their areas. So thank you all. Thank you. Thank you all. It was a pleasure. Thank you. Yeah. So I think we're going to move on to Q&A now. So I'm going to ask Sharelynn and K.R. to come up, and then we'll have some microphones in the room. As we get that all set up, a couple of you asked me last night, "What would be the takeaways?" Right? What would I write if I were you? And hopefully, what you took away from this as I straighten that pan leg out is first, we have a mature technology with high barriers of entry. Solid oxide is differentiated, and we have a head start against others with this technology, and nobody operates at the scale we do. We have multiple pathways for growth by leveraging this core platform. You saw the stack bar that we had. Who knows how that's going to play out? I'm very confident in the trajectory. Different applications will come in at different points, and that's important for us. We are gaining velocity and have velocity around our capacity and cost and continue to drive that through the company. We think that's incredibly important. And then lastly, KR and I use this word a lot, inflection point. The company's at an inflection point. We were moving into profitability, and we're moving into cash generation. And that's differentiating the company going forward. So those would be hopefully the four highlights that we've shown to you. And if we haven't, we invite you to ask those questions to us if we haven't convinced you of that through the next period. So we got some time for Q&A. You guys can just queue up at the mics. Go ahead, Julian. Yeah. As Julian's getting to the mic, Rick, you had a little press release this morning. Can you give us the two-minute what that was? Hey, Rick. Rick should come up here. Come on up. And we'll expect our announcement on LSB this morning. We've been working with LSB. I guess I got here in January. We started engaging with them in February. I'm incredibly bullish, as I mentioned during the presentation, about the integration of our platform with ammonia producers just because of how ammonia's made. And I also am very bullish personally, and maybe I bored some of you to death with this at dinner last night. But ammonia is a fuel of the future, and low-carbon ammonia is a fuel of the future. And Bloom has the platform to do that. LSB is a well-known producer of ammonia and ammonia derivatives, urea, ammonium nitrate, principally used for fertilizers, although they do have some industrial customers. And LSB, like many of the ammonia producers, and you can go look and read announcements, the market leaders like Yara, CF Industries, Nutrien are all making aggressive steps now in the area of decarbonizing their operations. LSB are on that same journey and have selected Bloom, and they're also going to, in parallel, evaluate another technology. We welcome that. We're going to be side by side and let the efficiency show itself. And LSB have shared, in addition to their carbon capture project that they're doing at another one of their facilities, they do have very large-scale ambitions and continued decarbonization and other projects. So we're very excited for the application. It's a strong fit for our platform. And we think that Ammonia Inc. will be watching what we're doing. Great. Thanks. Julian. Hey. Congratulations again, guys. Thank you for the time. Appreciate it. In fact, Rick, let me focus the question since you just had the mic there a second ago. So congratulations again on joining the team. Seems like a great win. I'd be curious if you could expand on your targets. You talk about sort of a handful this year, maybe. Obviously, kudos just now. Let's talk about how you scale that, right? So what does that large-scale order look like in 2023 that you alluded to momentarily ago, right? Who are those customers? What are they looking to prove out? Why are they waiting to the back of 2023? Is it simply operational hours, or is there something about the technology that they're looking for? And then in tandem, large-scale orders, 100 megawatts apiece? I mean, what is large-scale to you? And if I could throw one cherry on top, how do you think about that translating into revenues? Is that typical backlog where that 2023 order fits into your 2024 target? Julian, you're the master at run-on questions. We only have one question, but it's in 17 parts. So let me try and unpack that. If I miss some things, I'm sure you'll remind me that I missed a few. With the background that I bring to Bloom, what I would say is that knowing how the industry that processes hydrogen, uses hydrogen to make something, operates. I mean, NEOM's in the public space. NEOM's been in development for four or five years. Those decisions take a long time. When I came— How much longer before NEOM's up and running? Oh, and NEOM won't be running until I can say what is publicly known, right? 2025, 2026. These are very, very large projects. These are mega projects. I think to effect the energy transition, maybe I'll tackle one of the middle parts of your question. What do I see as a large order? There are going to be more NEOMs, right? It's not just going to be done by the industrial gas industry. The business model we are mindfully choosing to take with respect to hydrogen, and we're sitting here in California, I'll use the California analogy, right? Is that we want to make the best shovels to support the gold rush, right? The guy that sold shovels or the lady that sold shovels for the gold rush did really well. Some of the miners did really well. Many of them didn't. So we are taking a tack of building the most competitive, the most efficient technology, making that available for everyone because there are many companies that are very well capitalized with decades of experience in producing hydrogen. We don't want to compete with them. There are also many companies, and they're little companies you might have heard of, right? Like Aramco and ExxonMobil and little people like that that view hydrogen not just as their entitlement because of their production and use of hydrogen in the refining sector, but also probably key to their future survival as we transition into a clean energy environment. And look, we don't want to compete with them either, right? So our business model with respect to hydrogen is we're going to sell equipment. We're not going to sell molecules. And then we're going to be there to service the equipment, provide replacement stacks, etc. I think in 2023, I see a large order is a couple hundred megawatts, right? I mean, that's what we're fishing for, right? This is a big game. And maybe expand a little bit on, I think what I heard you say, Julian, is why are you doing the small scale first? Why is that a step before we get to large-scale orders, which is really a good and important question. So. Super question. And thank you for bringing me back to that. So I joined Bloom at the beginning of this calendar year. And when I was having the discussions with Sharelynn and KR and all the great leadership that you had a chance to meet here today, it reversed my position because as a long-term aficionado of hydrogen and developer of hydrogen projects, I always looked at electrolysis as, "Geez, solid oxide is going to be the killer app, the game-changing technology, but it's five to 10 years away." That was my view. And look, I bring a bias of selling steam reformers for my entire life, pretty much. And then I came to Bloom. And then I spent some time with KR. I went to the factory. I looked at the installed base. I came to understand the platform and how Bloom has gone through 15-20 years of an awful lot of hard work and people with scars on their hands from figuring out how to make the stacks cost-competitive, how to make the stacks live longer, how to make the architecture resilient. And that convinced me, knowing what I know about hydrogen, that with the future fuels that we're all going to need that are zero carbon or very low carbon and the way that those fuels are synthesized, we have the killer app. We're going to win. So I mean, I see 2023, we're going to take some orders. And then, I mean, said simply, we're also hedged, right? We talked about this for marine. And Tim talked about this a little bit around marine. So we have a marine platform that's LNG-based, natural gas-based. If that becomes hydrogen, it's drop-in replacement. If that becomes ammonia, the most efficient way to make ammonia is our technology. There's a natural hedge. If it becomes methanol, the most efficient way to make methanol is with our technology for the hydrogen and capturing carbon off the back of a fuel cell to make zero-carbon methanol. Green steel. Green steel. Yeah, precisely. Yeah. Perfect. So you just take the same hydrogen. If you can produce the world's earliest green steel that the boutique producers can build out of green steel and sell at a premium, there's a market model. We go after models where in the market, you can capture value, you can offer value, and you can do it at scale. Anything else? That's hobby. Let somebody else do it. Yeah. Great. And then maybe one more, just spur of thought. Why do we like renewable fuels? Why do we like SAF and why do we like renewable diesel? If you run barrels of renewable diesel compared to running a barrel of conventional distillate from crude, hydrogen intensity of renewable diesel is three times. You need three times as much hydrogen per barrel. And that product is traded on its carbon intensity. So we enable the lowest carbon intensity, and wow, they need a lot more hydrogen. So these future fuels are markets that we love, and we have a natural fit for. So we'll get back to Julian asking another question. But if you have a question, there's mics across the room. Feel free to line up or wrestle it away from Julian here. Sorry. KR, super quick question, if I may. Just back to Greg here. Super quick. You talk about gross margins. You talk about back half of this year. It seems like that's continuing to improve sequentially. This building is going to be in service. That's going to roll into 2023. Your guidance seems to imply mid- to upper-20s%. Your target for 2025 is reaching 30% gross margin. As I think about it, there's not as much of a gap there anymore if you're going to continue sequentially improving into 2023. How do you think about that setup? So I would say that the momentum we will continue to have with our growth rates and margins as we move to 2025, you can see that moving sequentially each year. Within any current year or current quarter, you do have seasonality. The other thing that you're going to have is we're going to get this line that you all walked today, installed, and up and going by the end of the year. We have two more lines to go. So one should not expect that this won't repeat again where we have tooling online that's not 100% efficient. So we may go up, get to our 24% this year, target that to be up higher as we move to 30% by 2025. You may see a similar phenomenon within that quarter as we double our production value again, and we continue to move forward with that. So on a quarter-to-quarter basis, it may look a little bit different. But you're right. We are going to sequentially continue to grow towards the targets that we have on an annual basis. I think so far, the cyclicality of the business, you can clearly see. The first half is not as strong as the second half, but overall, we put the numbers. We would love to change it. We will work to change it. But that's the nature of our business right now. Similarly, the order is following. Let me take one of the ones we received beforehand. It was actually to me. Can you give some examples of what you intend to do to simplify your financial reporting? I get this asked a few times. We talked a little bit about it at our annual meeting a little while ago. What complicates, in a way, our financials is the customer financings. We dedicate a lot of that into our Q's and K's to make sure people understand how that goes through. We also have a bit of a complication in that we used PPA structures traditionally, and some of those PPA structures early in our career, early in our life, required some amount of equity support from the company, so they're consolidated, and that's how you end up with unrestricted cash, and that's how you end up with non-recourse debt. One of the things that we are endeavoring to do, and if you saw it in our queue, is we bought back one of the old PPAs, so we call it PPA3 in our financials. We are in the process of taking that entity and selling that entity, and what that's going to do is result in about $38 million of that non-recourse debt moving off of our balance sheet, so that's one less thing we would ask you to back out of your models going forward. In doing that as well, we're going to sell that to a customer that's going to line up well with the repowerings I talked about. In the last quarter, I talked about mix. And it'll be about 5% of our volume that we can sell new units into that old existing PPA and repower. And it's a nice economic transaction for the company, for the purchaser. It is going to result in a non-cash charge within the quarter, call it $40 million. It will not impact our reported gross margins or operating margins. But just want to give you that as we go through it. And then we have two more that we'll endeavor to look at in the future of doing similar things, just to simplify our balance sheet and make, when you look at our debt number, you know, that's the debt of Bloom, not some old VIE that's existing that's secured by the asset someplace else. What other questions? Please, Leo. I guess I'll stand here for this one. So maybe just to follow up a little bit on margins. You guys clearly talked about, Greg, I think I heard you mention the second quarter margins would be pretty similar to first quarter. Obviously, first quarter was a fair bit weaker than it was last year. I'm assuming some of this is some seasonality in the business, but also just some of the supply chain issues with the higher costs on your products here. I guess what I'm really getting at here is you talked about a changing revenue mix in the second half starting to help your margin. But presumably, some of these supply chain issues are going to push into the second half. It seems like there could be potential challenge on the positive cash flow target if some of these costs for some of the products you're buying stay high here in the second half. Yeah. And clearly, that was what took us off our numbers last year. Listen, in the early part of the year, our margins are pressurized not by sale price. We are selling at the same selling price that we sold on average last year. Historically, there's volatility in our margins. In the first quarter of 2021, we had 30% non-GAAP gross margins. In the second quarter, we had 18%. It's part of the things as we move ourselves towards scale. Any mix of particular deals or costs within the quarter can create some volatility. What's going to help our margins as we move from the first half to the second half really isn't selling price at all. It's really going to be around us generating a lot more output in the second half and getting all the costs that we've been building into this building allocated to a lot more units and taking our unit costs down. I would say any supply chain pressure to date. We've kept our cost and material costs at about 75% of our product costs. We've kept that relatively flat over the last four or five quarters. And that's Satish's team doing a great job and the engineering team of coming off offsets to the inflationary pressure. As we go into the second half, if that creates some additional pressure, we'll continue to look for ways to offset that. One of the things that we talked about with the repowering, we gave ourselves a little bit of better mix within 2022 with that, and again, it's less than 5% of our overall acceptances. That's going to handle a little bit of that cost pressure that you talked about. We think that maintains us on our 24% non-GAAP gross margin targets for the year, and we think we accelerate from that point on. I mean, you can see it here, right? The equipment here is not running as efficiently yet. It will be running much more efficiently in the second half. Sure. There's a question? Yeah. Greg, I asked you to take the mic. Yeah, please. Thank you. Really amazing day. I wanted to ask you, Greg. You speak a lot about working the inflation through the cost side. But can you do something on the revenue side? Because inflation isn't just component costs. It's also labor costs escalating and whatnot. Yeah. So we have a $2 billion backlog, right, on product. And those prices are locked in. I would say, and I'll actually turn this over to Sharelynn on the time to power and what your team and Billy's team is seeing around that from a pricing power standpoint as we move forward. Well, one of the things that's implied in the move from when I talked about the pivot from a state-based strategy to value selling is we genuinely can price to value for our customers. And the reality of it is resiliency and predictability and sustainability drive more value. Stated another way, we're not competing at the lowest cost to the extent we were in the past. So time to power is a great example. We will never price gouge. We will never look to capitalize on a bad situation that would never allow that to happen with UKR. But we certainly don't get pulled to the bottom in those situations. So it does dovetail together. We certainly see over long term that our best margin improvement does come from our cost down, but we also don't see this dramatic cliff of being pulled down based on price. So I think if you just combine the two, you're getting your answer, Amit, is, look, the first and foremost thing is the good news about this company, as you all see it, is there's a $2 billion backlog out there that we're building to, right? It's a long cycle to sell, and how many companies can say, "We know where we're going to put our units for the next year and a half," to whatever it is, that's a great thing to have. The bad thing about it is you can't renegotiate pricing like in your gas pump. By the hour, you can't change the dial of how much you're going to charge by the gallon, right? So that's your issue that you have. However, the dynamics of value creation for us are the three analogs that Sharelynn talked about again, right? There, clearly, the alternative that the customer has is marching up. So any opportunity we have to sell, especially time-to-power when somebody is struggling for it, gives us margin expansion opportunity, right? And for this company, for the foreseeable future, we don't have to think about price suppression as time goes on. That's a great benefit. Yeah. Sure. Noel. Hi. It's Noel Park from Tuohy Brothers. In the first part of the tour where we got to see inside the box, that was really informative. I was wondering, could you just highlight which of the technology that we saw is specifically proprietary to Bloom? I think as an example, in the past, you talked about your thermal management technology being proprietary, for example. So thanks. So that's a great question. Let me address this in the following way, okay? When we started Bloom initially, the head of IP for Intel who had retired became our consultant to strategize the IP strategy. So we broke it down into three parts. Anything that people, once they see, can copy it, write their own invention disclosure, and put it out. If we didn't do it and they did it and they put a patent, that's a blocking on us. So for defensive purposes, we put patents out on things of that nature. That's a few hundred. Shawn, how many patents do we have? 362 patents, many more filed, okay, to be issued. The next part is Coke is able to do what it does because of process secrets, trade secrets. There are hundreds of trade secrets through this entire process. They're balkanized. They're kept in very different ways. If I told you, you are either a dead person or you're working at Bloom and you've signed the confidentiality, there are only two kinds of people that know that, right? So that's that second part. The third part comes from when you take wet chemistry, you take solid-state mechanics, you take all these moving parts, you need to operate them in the field in various ways, the know-how. The know-how in each of these steps, hundreds and hundreds of them. That combination of these three things pervade all the way from the raw material in the ceramic to the metal plate, all the way to how we manage the system in the field with everything in between. So the secrets are all over the place. So if somebody, God forbid, got their hands on our system, re-engineering it, if they were smart enough to do that, they should be doing something else. Thanks. Thanks, Noel. Good. Questions? Yeah, come on up. Great. Thanks very much. Maybe first question for Greg. Can you think about, as you're expanding and growing over the next 10 years, what a good capital cost CapEx type of number might end up being for that type of expansion? Is it just a rule of thumb as a percentage of revenues or something like that for us to think about cash needs? Yeah. The easiest way for me to think about it is a gigawatt of capacity costs about $200 million, and we're going to grow 8-10 gigawatts over the next decade. So how that comes in, and you can break that out over the course of years. Great, and then maybe just a question on hydrogen, thinking first about the electrolyzer and thinking about pricing and talking about pricing to value. So I think the thought process is that because of the efficiency, there's a little more headroom on the capital cost. When you think about pricing, then, are you keeping that in mind when we're seeing in the market, PEM electrolyzers, I guess, selling at $500 a kilowatt, you can go for a higher price than that? Is that kind of what's the driver here? And is there kind of adequate headroom as you're seeing what the market's selling right now? Greg, do you want me to start and then you finish? Yeah. Yeah. Yeah. Absolutely. So every study, whether it's a McKinsey study, whether it's a DOE study, whether it's our own studies, at scale with hydrogen, which is when it matters, large deployments, we don't think of hydrogen as small deployments, right? Refinery scale, hydrogen cloud. This is how we think about our system that you saw, right? More than 80%, somewhere in the 80% range is energy input costs. Okay? Let's take a simple math of saying we are 30% better in energy efficiency coming in on that 80% cost. 80 times 0.3, that's 2.4. Let our competition provide those boxes for free. We still win. So they should be buying from us because we have a better mousetrap, right? And I think it's a lifelong seller of hydrogen. Every time you go engage a prospect and you talk to them about, okay, what it is they need it for, what volume, what pressure, blah, blah, blah, before you give them a proposal, always the next thing you look at is, well, what's the next best alternative, right? And you let that really foundationally shape your thinking. And I think that the job that supply chain is doing, engineering is doing, manufacturing is doing, taking cost out with time, as we continue to drive cost out of the base platform, that's going to result in more margin in our pocket, right? So compete and win on our efficiency, grow margin with cost down. And I don't think anyone that's looking at doing these projects isn't looking equally at the CapEx as they do the OpEx. So we build those models day in, day out and provide that. And no, $500 an electrolyzer by competitors does not scare us to the point that. Yeah. Absolutely doesn't scare us. Because hydrogen, the procurer of hydrogen is buying a commodity. They shouldn't care about the little bits and what they cost. They should care about the cost per kilogram of hydrogen. We can compete with anybody, even with our current price structure, let alone where our cost structure will go down in the future. Great. Maybe last one, if I could add. Sure. You've given kind of a split, the long-term view of the company. And thinking about how much focus really is on hydrogen, Greg could probably think of this even more. But how do you think about those relative splits? And can hydrogen be bigger than Power Gen? I just think about kind of these long projections about this. And why wouldn't hydrogen be a bigger split than Power Gen, for example? Well, I will start with this. So if you just look at the sizes of the markets we're playing in, we see by 2026, power generation, 2-3X the size of the business it is today. And that is the company today, Power Generation. By 2031, we're projecting that's 10 times the size of what it is today. So we took a conservative view at that market. And in our model today, it is bigger than our net-zero businesses. That said, when I say, you know what, there's a lot more accelerators and policy outliers that aren't factored in, we absolutely can see hockey stick differences. But what we love about our model is we'll win either way. Because if you look at the world's quest to decarbonization out to 2050, it's really just a mix of how you get there. And whether you're offsetting more coal with natural gas, we win on Power Gen. Or whether you accelerate to decarbonization via carbon capture or green hydrogen, we win. Whether you see a lot more blue hydrogen, we'll play there too. So for us, there's a built-in hedge. So yes, right now our model is bigger in Power Gen out to 2031, but it wouldn't surprise any of us if the mix and how we get there doesn't change. Alex, also having walked the line, I think this should be a lot more clearer, right? That line you see behind you printing cells, that line doesn't care on any shift, whether it's building fuel cells or electrolyzer cells. Our supply chain team doesn't care whether we are doing this or that because they're buying the same substrate, the same boxes, the same factories. Every megawatt of fuel cell is the equivalent of 2.4 megawatts of electrolyzers, just the nameplate, okay? Little changes here and there, so think of this being an automotive line and it being a flexible automotive line that can produce SUVs. It can produce trucks. Depending on what that order book is, it's going to flow the right number of parts. That's the way we think about it. We are supplying the shovels. We are supplying shovels for power production. We are supplying shovels for hydrogen production. You tell us what color shovels you want, we'll ship it to you. So to some extent, of all the energy companies that are out there, we are agnostic and we like both. You just tell us what you want, that's what we're going to give you. We are taking the market risk out of our investment. Great. Thanks for today. Thanks, Alex. Probably time for one more question, please. Hey, guys. How are you? Good. Hi. Thanks for having us. When you talk about efficiency and relative to the competition, I get confused sometimes between the PEM and SOFC stationary mobile. And then it's not necessarily on yours, but are you talking about something that's operating at peak capacity on your equipment? And then you kind of have to make an assumption about how the customer would use a PEM fuel cell? Yeah. For electrolyzers or fuel cells or for either? I was thinking fuel cells, but how it's different for. I'm going to give that one to KR. So when you look at fuel cells, it's a baseload power generator, right? Baseload power generation, average life over the entire life of the contract. That's what generates megawatt hours. At the end of the day, the customer is not buying a fuel cell, they're not buying a technology, they're buying megawatt hours. So those many megawatt hours, how much fuel does it take to give at the meter those many megawatt hours? That's the true efficiency because one is value, the other one is cost to produce that value. You put one on the numerator, you put one on the denominator, that is all in efficiency. That's also cash efficiency. That's the way we show our numbers. If you want to exactly know, the lower heating value of the fuel is what we take, the power as it comes into your socket, not generated miles away, is the other number. So this is about as real as it gets. That's our efficiency. When we compare it to anybody else, that's the exact same efficiency we use. Great. Thanks, Eugene. Hey, listen, I hope you guys had as much fun as we had last night and today. We really enjoyed it. I know this is a big-time commitment, and we thank you for your time, especially for that in travel. We thank you for your interest in Bloom. We appreciated everybody's great questions today. We had a ball. Thank you. Yeah. It just occurred to me, as we are sitting here, so that's why it was not on the script. You all started off the morning marveling at the technology, looking at what's feasible, the innovation. As you leave this afternoon, I hope you appreciate the people behind it. Nothing here happens without our great employees, without our great leadership. At the end of the day, somebody asked us about what is our secret, what's our trade secret, all those, yeah. Our real secret is our team. They're amazing. Thank you.