Greetings, and welcome to the Plug Power fourth quarter and year-end 2020 earnings conference call. At this time, all participants are in listen only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. It's now my pleasure to turn the call over to Teal Hoyos, Director of Marketing Communications. Please go ahead, Teal. Thank you. Welcome to the 2020 fourth quarter and year-end update call. This call will include forward-looking statements. The forward-looking statements contain projections of our future results of operations or of our financial position or state other forward-looking information. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We believe that it is important to communicate our future expectations to investors. However, investors are cautioned not to unduly rely on forward-looking statements, and such statements should not be read as a guarantee of future performance or results. Such statements are subject to risks and uncertainties that could cause actual results or performance to differ materially from those discussed as a result of various factors, including but not limited to, the risks and uncertainties discussed under Item 1A Risk Factors in our annual report on Form 10-K for the fiscal year ending December 31st, 2019, or our quarterly reports filed on Form 10-Q for the quarters ended March 31st, June 30th and September 30th, 2020, as well as other reports we file from time to time with the SEC. These forward-looking statements speak only as of the day in which the statements are made, and we do not undertake or intend to update any forward-looking statements after this call or as a result of new information. At this point, I would like to turn the call over to Plug Power's CEO, Andy Marsh. Thank you, Teal, and good morning, everyone, and thank you for joining the Plug Power end-of-the-year conference call. 2020, as everyone knows, for the world, was a very challenging year. We at Plug Power have been very fortunate as we participated and witnessed globally the acceptance of hydrogen, especially green hydrogen, as critical to help wean the world off fossil fuels. Estimates have been made by experts that hydrogen can represent 18% to 23% of world's energy by 2050. Is ramping today. We at Plug Power have been building our technology set for decades waiting for this moment. I have PowerPoints that are 10 years old that describe how our work then would position us at the right moment. The work was more than technology, but building the first commercial market for fuel cells. Our first app in material handling, it's not glamorous, but it built the company, proved our technology set, and launched a full suite of products and new capabilities. Our turnkey solutions that provided end-to-end solutions, including selling hydrogen to building fueling stations and fuel cells and providing aftermarket service, really positions us today. Our relationships with Amazon and Walmart gave us insight into how to improve our offering, but also helped us identify the missing links in our portfolios. One of these insights was that large corporations' sustainability goals are real, and that for the market to expand, green hydrogen was a necessity. Green hydrogen also became practical over the last couple of years since it is closely linked to the declining cost of renewable electricity. This insight drove us to make three decisions in 2020. We purchased the leading electrolyzer technology company, Giner ELX, that had the electrolyzer technology to convert electricity to hydrogen, green hydrogen. We purchased United Hydrogen, the first private company to build a large-scale liquid hydrogen plant. Finally, we made a commitment to build the first U.S. nationwide green hydrogen generation network, reaching 500 tons a day of capacity by 2025, and 1,000 tons per day globally by 2028. The macro trends to a more sustainable world, the recognition of hydrogen as vital to meeting these goals, and Plug Power's expertise opened many relationships for us in the past year. Let me name a few. Brookfield and Apex both partnered with Plug Power to provide sources of low-cost, renewable electricity to generate green hydrogen. By the end of 2022, we will have over 70 tons to 100 tons per day of green hydrogen available in the U.S. by Plug Power. Renault, a leading global auto manufacturer, recognized Plug Power's unique ability to offer full turnkey solutions to the light commercial vehicle market. From their experience in BEVs, they recognized they needed to offer more than the vehicle. The JV, which will be selling vehicles and fueling stations, will be formalized by late second quarter or early 3Q. SK, the second largest Korean conglomerate, recognized that Plug Power was the only company that could offer a complete solution in the hydrogen industry. We will be building everything from large-scale stationary products, hydrogen plants, electrolyzers, Other apps. We will build a second gigafactory in Korea. The timeline for this JV has been accelerated and will be formally closed by the mid-third quarter. As you may have seen, SK finalized their $1.6 billion investment into Plug Power last night. Four, in another step in our global green hydrogen story, Plug Power announced a deal with Spain's second largest renewable electricity supplier, Acciona. The JV plans to build 100 tons of green hydrogen generation capacity on the Iberian Peninsula. We'll be announcing more partnerships in 2021. Back to 2020. In 2020, we experienced a 42% increase in gross billings, achieving $337 million. We're now generating cash from operations, excluding the need for working capital, which is needed to grow. In 2021, we'll exceed $475 million in gross billings, with over 93% already accounted for in our plan. We've never been afraid of tough decisions. We accelerate warrants at the end of 2020. This decision will have the side benefit in making our GAAP financials more in line with how we operate our business. It costs a large one-time non-cash charge but clears the deck for the future, and quite a future. With $5 billion in the bank, a thoughtful expansion plan, and unique market opportunity, now is the right time for Plug Power to invest. Our goals for 2021 are clear. Gross billings of $475 million, annual gross margins in the high teens, achieving 20% by the fourth quarter. We view gross margin expansion as a critical indicator that our investments are paying off. Three, successfully launching our two JVs with Renault and SK. Four, continual expansion of our business via partnerships, acquisitions, and other relationships. Finally, positioning the company to achieve $750 million in gross billings in 2022, which will position us for our $1.7 billion goal for 2024. Paul and I are now available for any questions you may have. Thank you. We'll now be conducting a question-and-answer session. If you'd like to be placed in the question queue, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star one. One moment please while we poll for questions. Our first question today is coming from Eric Stine from Craig-Hallum. Your line is now live. Hi, Andy and Paul. Hey. Morning, Eric. Good morning. You had mentioned in the prepared remarks there that the SK partnership, obviously the investment closed overnight. Maybe just some clarity into how it's accelerated since that announcement. How do you view the opportunity and maybe which areas do you think move faster than others? Sure. Eric, when we made the announcement, I think that I started out by saying I thought we were being conservative. We have developed actually six work streams in the development of this JV, where the teams are meeting 2x-3x a week. We've identified certain business opportunities, quite honestly, that are much larger than we even thought initially, and that I think that the first three opportunities will be, one, large-scale power generation. I would expect we'll be shipping products later this year or early next year. That's not in our $475 million plan. I think the second is SK has a real commitment to sustainability. I think you'll see electrolyzer products be moving over into SK for usage, again, early next year. Finally, there's a lot of work ongoing with hydrogen generation and fueling stations. Got it. Okay. Just to clarify what I think I heard, that that's not in the $475 million on the large-scale part. That is correct. That's not in the $475 million. The $475 million, as I mentioned in the prepared remarks, we have 93% in-house at the moment. Usually, we're at the 75% level at this time. Got it. Maybe sticking with that topic, well, you've got the four pedestal customers in materials handling. Curious what type of mix you see from those four, the one recently added, but those four in 2021? You typically don't give the forward-year outlook this early in the year, at least I don't remember that you have. I'd love to hear what the visibility you have is from the four customers you've got and potentially some others that you add into that 2022 goal that you've given today. Sure. We have between those four customers and others, and Eric, those four customers probably represent 80% of our deployments here in 2021. That circle in the range that there's already $400 million in-house that's available for shipment this year. I think that one of those four would represent more like 30%, and the rest will be kind of split a little bit evenly. Got it. Just in terms of a little bit on 2022, maybe you have given the forward year, not the current year, but the forward-year guide or outlook this early. Just curious, you've got better visibility than you typically do into 2021, but what type of visibility do you have into 2022 based on their plans, and how does that compare to historical? Yeah. I think there's three items going on here that helps us with 2020 to be able to have the insight into 2022. Obviously, after all these years with many of these material handling customers, and as I talked about before, we're not doing short-term planning. We're doing three to five-year planning. There's a good deal of insight into their activities. The electrolyzer sales funnel was strong. This year, we'll take that business and like we've done in material handling, increase it by a factor of seven or eight this year. It'll be in the $40 million+ range. We have a funnel that's close to a billion dollars already built up for the electrolyzer business. As you know, Eric, everything in the funnel doesn't happen. Finally, when I take a look at, especially with SK, with some of the initial deployments, as well as with Renault, we're kind of sitting back feeling very, very good about how we achieve the 2021 goals. Okay. Thank you very much. Okay. Thanks, Eric. Thank you. Our next question today is coming from Colin Rusch from Oppenheimer. Your line is now live. Thanks so much, guys. Morning, Colin. How are you? I'm good, Andy. It's always good to hear your voice. Can you guys give us an update on where you're at just in terms of specific projects, in terms of identifying sites on the renewables side for supporting the hydrogen rollout, and then how big the queue is behind that in terms of the sites that you could grow into as you start to see demand emerge? Very clear, Colin. We have four sites, three of them which are moving into a development stage. Two in the Northeast, one in the Southeast, and one in California, because of, as you know, permitting issues in California can take a little bit longer, but we already actually own the land in California for the green hydrogen plant in the valley around Fresno. We have probably over 15-17 renewable sites we're looking at for the ability to generate green hydrogen, which are spread widely across the country. I think the first two or three plants you'll see go up, I think you'll see one in the Northeast, one in the Southwest, and 1 in Texas. Okay. As you look at those opportunities, is that going to be an opportunity for you guys to also build some sort of regulation or storage-type applications adjacent to those sites to help stabilize the grid? Certainly, that's one of the opportunities for hydrogen in terms of kind of being the connective tissue for some intermittent renewables and the larger power grid. Are those sites being chosen with multiple purposes in mind? I'm going to give you a wishy-washy answer here. Yes, not nearly as clearly defined as the generation portion. All these sites are grid connected, though before the meter, that cost are wholesale-type prices. We've been obviously thinking a great deal about the issue you bring up. First and foremost, we are committed to green hydrogen and providing our customers green hydrogen. I can tell you, not surprising, when we look at the wind farm activity that we're looking at in Texas. By the way, the wind farm user we work with actually was very successful during the recent Texas storm. We certainly are looking, the wind energy, how we put wind back on the grid at the right time and how to use it at the right time. That's really clearly defined, but certainly storage and generation is in the back of our mind, especially after what we see going on around the world. Thanks so much, Andy. We'll take the rest of it offline. By the way, Paul, I think SK's going to help us a great deal in those learnings. Yeah, that makes sense. Appreciate it. We'll take the rest offline. Thank you. As a reminder, that's star one to be placed into question queue. Our next question is coming from Jeff Osborne from Cowen. Your line is now live. Hey, good morning, guys. Congratulations on all the success so far. You've got a lot of irons in the fire for 2021. I was just wondering if you can give us a sense of the OpEx trends and CapEx for modeling purposes as you gear up for the very heavy growth you've got for 2022 through 2024 that you talked about, Andy. Jeff, from the CapEx area, I would probably circle somewhere around $750 million, with most of that going to support the expansion of these hydrogen plants. We've done CapEx modeling for the next five years, and we still see a significant surplus on our balance sheet, even with our aggressive plans to build out these hydrogen plants. To reach the 500 tons a day and to achieve everything we're looking to do, it's probably somewhere in the $2 billion-$2.5 billion range long term. As far as OpEx, Paul, you may want to comment on that. Jeff, I'd expect our OpEx may be up to 30% higher this year. Paul, do you want to add to that. Paul? Yeah. I'm sorry, Andy, can you hear me? Yep. The signal's not so great where I'm at. I apologize. Yeah, I think that's right, Andy. I think in that 30% to low 30% range per quarter is a good number. I think one of the key things, Jeff, this year is, you're going to see definite growth in sales and gross margins, and there's a strong focus there. As Andy alluded, we're going to be investing in CapEx and some OpEx for all these growth platforms, because there's a lot in the fire and a lot of things happening, and we see the opportunity to really accelerate the growth even further. You will see some of that this year. Got it. The 30% comment, is that off of the fourth quarter run rate or the aggregate number for all of 2020? Yeah. Go ahead, Paul. Paul? Jeff, can you hear me? I can hear you, Andy. Just given the fourth quarter was up quite sharply, I just want to make sure I'm using the right basis. No, I would use the annual basis, Jeff. Got it. How are we proceeding along, just given the pretty heavy CapEx there over the year as well as the upcoming years for these facilities? Are we at a point in time now where these sites can use leverage? Or is this all going to be straight out of the cash balance? I think the answer to your question is yes. Paul, are you there? Okay, I guess I'm going to have to take it, Jeff. I think you're going to see leverage coming into play, and I think you hit on a good point, Jeff. We've done modeling to make sure we have sufficient cash balances to do it all our own. I think you're going to start probably seeing leverage in the second half of the year as we start doing the build-outs. There has been work going on there. I think you'll see probably on the conservative basis, we've said to ourselves, what if we did it with all equity? We can do that. We're in a position to do that now. We don't expect that to be the path. Got it. My last one for you, Andy, is just the two joint ventures. Are we at a point in time where you can confirm that the results of those JVs will be consolidated in terms of revenue? Will these all be below the line? That might be more of a question for Paul, but just in terms of the accounting treatment of the joint ventures themselves. Yeah. I know we're working in the negotiations to make sure we can consolidate. Got it. I think we're getting there. I think that both partners understand the criticality of that to Plug. As you know, Jeff, there's a lot of accounting that goes into that. A lot of legal work that goes into that, our team has been working through it. Absolutely. All right. Great to hear. That's all I had. Thank you. All right. Thanks, Jeff. Thank you. Our next question today is coming from Craig Irwin from Roth Capital Partners. Your line is now live. Hi, good morning, thanks for taking my questions. Good morning, Craig. How are you? How are you? Okay. I need to say congratulations, too. You guys had an absolutely phenomenal 2020, let's continue that in 2021. Congrats. My Board agrees with you, Craig. Good, they should. Andy, one of the things we haven't talked about much, but there is actually tremendous appetite for out there, is fuel cell trucks, right? Investors really want to see companies be successful in this market, given the opportunity to move away from oil, and the potential for long-term economics, even on green hydrogen, to be really interesting. Can you maybe update us on what's going on in fuel cell trucks for you right now? Are there new partnerships sort of percolating up out there? What's the status with the different customers you've disclosed to date? Sure. Craig, I think that the model that we've used for Renault in Europe is one that we're looking to duplicate. I can tell you that a good deal of our forward-looking thinking at the moment has to do with how to address that market. I think there's a couple items we've concluded, and I think the big one is, we don't want to just be a first-tier auto parts supplier. The JV with Renault was structured that we're jointly selling vehicles, because we have seen what happens in the world if you're just a parts supplier to the auto industry. I also don't know if you just go about doing it the old way of just building cars and vehicles like the auto industry has done traditionally, that you end up in a purchasing office instead of a CEO office. We do have discussions going on in the U.S. and elsewhere, especially with a focus on heavy-duty vehicles. Two of our big customers we'll actually be doing pilots with very shortly. We also have already done work with folks who are kind of Tier 2 players like Hyzon. I think finally on top of that, with Renault, we have a fairly aggressive plan to really start rollouts in the fourth quarter, early first quarter with some initial deployments, more in the light commercial vehicle space where there are apps where it makes sense. Now, when it comes to green hydrogen, I think like most people, we believe that electricity under $0.04 a kilowatt hour makes green hydrogen, especially as a fuel, very competitive with gray hydrogen today. As you know, Sanjay has spent an incredible amount of time thinking through how we can offer a better product than gray hydrogen with green hydrogen at similar pricing, and make margins with Plug Power. I think you've been around this a long time, Craig. That's what our customers want. They'll pay a slight premium for green, but nobody's looking to pay a huge premium to be green. Understood. That makes a lot of sense. My next question is about the infrastructure to fuel trials, potential small fleets of fuel cell trucks. Last year, you did mention that Plug had done some work with its existing partners, retrofitting some of the fueling infrastructure that serves their forklift fleets so that they could start with potentially doing fuel cell truck trials, maybe distribution center to distribution center type work. Can you maybe update us on that? More importantly, Tesla gets $400 million a quarter, basically, in credits. A large chunk of that $400 million comes from the installation of their Supercharger network, their charging infrastructure out there, under the California incentive programs. Can you talk about the potential to pull down some of these incentives just by building out the network for your customers? Have you already got applications in? When do you expect that to potentially be achievable? If I look at the, I'm going to use two examples for you, Craig. When we look at the LCFS credits in California, we look at where we believe we can come with CI scores, especially since we're looking to be moving hydrogen with green hydrogen trucks. That at the pump, we believe the credit can be up to $4 a kilogram. For those who are listening here who may not understand, that makes our cost, depending on how you split the green hydrogen, that almost makes the green hydrogen, and probably does make it very less than fossil fuel diesel energy, significantly. There is also bills beginning to circulate around Congress associated with the Biden Green Climate Plan, which is suggesting up to a $2 credit per kilogram for green hydrogen. That makes the choice between green hydrogen and gray hydrogen incredibly competitive. I think that once Sanjay has his first 100 tons up, that there'll be a great deal of government supports and credits, and a real huge opportunity to increase the margin for Plug Power long-term. Excellent. Thank you, Andy, and thanks again for taking my questions. Thank you, Craig. Take it easy. Thank you. Our next question today is coming from Jed Dorsheimer from Canaccord Genuity. Your line is now live. Hey, thanks, Andy. Thanks for taking my questions. Good morning, Jed. How are you? I'm doing well, thanks. Hey, I'm going to do a quick check here. I just want to know if my partner's back on the line with me. Paul, are you there? Paul, are you there? Andy, I'm here. I'm so sorry. I'm here, Andy. I don't know why this thing got out, but I'm back. Okay. All right, Jed. All right, perfect. A couple of questions. J ust one. On the material handling side, and this might be better served for Paul, because it kind of gets into warrant structure a little bit. If I look at two of your four major customers, I've actually, in 20 years, I've never seen this. It's actually a fantastic situation where your customers are literally getting paid to take the product based on the warrants in 2017, because your stock's been so strong. With the expiration of Amazon, I'm just wondering how, and now only Walmart, how does that change the visibility or how do you, Paul, think about the bookings when this starts to pivot away? I'm assuming here that Walmart would also exercise the expiration here, too. I'm going to take that Jed question, and I'm going to hand it off to Paul. Most of the warrants have not been exercised. Walmart and Amazon both have a significant interest in the success of Plug Power financially. Obviously, I'm sure it wouldn't strike anybody surprising, they're quite pleased with what happened. I'm going to hand it off to Paul, but they are committed. Both companies view that hydrogen is critical to meet their long-term climate goals, and that they have a partner with Plug Power that goes well beyond financials that has proven that we can deliver the products that they need. They continue to help us, both of them, to find new opportunities for fuel cells and green hydrogen. I can tell you one of them actually introduced me to two of their other investments in the last three weeks, to help us grow and propel this business, beyond just direct business with them. On that note, Paul, I hand it off to you. Thanks, Andy. T he main comment that I would make is that, by the fact that these expenses for the one customer have been all reflected and reported at this point, there won't be additional charges for those in the future. That should significantly make it easier and more simple in terms of interpretation on the results as we go forward. I expect, we've been using gross billings as a means by which to communicate the revenue and sales activities, without those charges. I think going forward, that number should be a lot closer to the GAAP revenue number, which will make it easier as well as we move forward. Got it. Just to be clear, I'm not challenging their commitment, but if their strike price is at $13 to buy product and your stock is at $50, they are being paid a significant amount of money to actually take your product. It does change kind of the relationship a bit, once that expires. I guess that was really the core of my question. To be clear, if Amazon is done and Walmart isn't. Yeah. To be clear, Jed, and I'm not going to name specific customer names, those companies own a lot of warrants that have not been exercised. Got it. Amazon as well? Yes, Amazon as well. Amazon owns lots of warrants that have not been exercised. Got it. Andy, just pivoting a little bit to the upstream, and I was wondering, we look at the electrolyzer side of the business, and by the way, congratulations on the SK deal. I agree. Looks like a fantastic deal. If you look at the difference between reformation using methane versus that of green, one of the main differences is the natural companies on the methane reformation would logically be kind of a nat gas or a chemical that have experience in the downstream complex plumbing systems. I'm just wondering on the green side of things with windmill companies, I'm assuming the discussions, but how are those companies thinking about the risk profile in terms of, do you see more partnerships where pulling in, I guess, a downstream or midstream refiner, and you see that kind of wind market that starts to look more like driving through Trenton, New Jersey, for example, without the flaring? I'm just wondering how that shapes out if you will. I think you ask an interesting question, Jed, about the evolution of how hydrogen will be distributed, especially hydrogen that meets the quality and standards you need for fuel cell engines. There is a slight difference in how one goes actually about generating that hydrogen. Initially, most hydrogen that's green will be transported in liquid form via trucks, and much like it is today. Ultimately, you're going to see more and more, and I think we had an earlier call, which was talking about storage. You're going to see more and more on-site storage with hydrogen being generated. Some of that'll be in caverns for very long-term storage. Like natural gas has done today, and like hydrogen has done in the refining industry today. Finally, I think that maybe sooner, when you see some work going on in Europe, you're going to see that, and we've been already thinking about this, how to build plants close to pipelines so that you can start injecting hydrogen directly into the natural gas pipeline. Initially a few percentage and gradually increasing. All that's going into our thought process. Having grown up in Philadelphia and knowing what those smokestacks look like, I don't think we'll see anything like that. Good. One last question. Sure thing. I'll jump back in the queue. Just as a reminder, the split of the business, if we look this year, the vast majority is still going to be material handling and selling the fuel cells, as well as the equipment to support that market. Can you just give us a reminder of the 2024 guide in terms of the breakdown of the biz, please? Sure. I think you hit an interesting point, Jed, that we expect somewhere in 2023, there's actually a transition where the other businesses are bigger than material handling. In 2023, we expect that about $750 million will come from material handling. Between hydrogen and electrolyzers, we would expect to be in the $500 million range, and the rest will be involved in large-scale stationary and on-road vehicles. Great. I'll jump back in the queue. Thanks, guys. Great. Thanks, Jed. Thank you. As a reminder, that's star one to be placed in the question queue. One moment please, while we poll for further questions. Our next question today is coming from Amit Dayal from H.C. Wainwright. Your line is now live. Thank you. Good morning, Andy. Good morning, Paul. Good morning, Amit. How are you? I'm good, Andy. How are you doing? Very good. Andy, you've secured pretty solid partnerships on the downstream side in terms of distribution with Brookfield, SK, Renault, et cetera. Do you need partnerships sort of on the upstream side, with some of these renewable energy companies as well to just complete this value chain, if you will? Help me with that, Amit, because I may not understand completely. I think of Brookfield as providing us the renewable electricity. I'm probably missing some point. Okay. Do we need others like Brookfield as well should some of those types of partnerships come into play a few ways? I think you'll see more of those partner. The answer to your question is, there will be additional renewable partners even here in the United States. I think you'll probably see announcements in the foreseeable future. Okay, thank you. Moving on to the 4Q '20 results. Maybe this could be for Paul. It looks like there could be between $43 million-$44 million in one-time costs in the fourth quarter. Within this, you talk about some hydrogen supplier issues. If you could just provide us any color on what this is and whether these are one-time costs that are out of the way or is there any other one-time costs that may come into play in the next few quarters? Sure, Amit. I think there's a number of things going on. I would say, we had a force majeure issue close to year-end with one of the hydrogen producers at one of their facilities that we worked through. Whenever those events happen, there's some cost that you incur to kind of navigate through it. It doesn't happen frequently. I would agree with your comment there. Like a lot of companies, even though we've had great success in growing the business and new platforms and doing a lot of things, there are some challenges with COVID in terms of navigating through that, from an operational side. We saw some of those events. The other thing that's important to note is, there was a lot of strategic joint ventures and new business development activities announced in the last couple of months, and obviously we've been working extensively on that in fourth quarter, to prepare for those, and some of those were announced early in January as an example. There was a lot of investment to accommodate that. Those are the big themes and, yeah, I would say, we obviously don't do those every quarter and don't expect that to happen routinely. Understood. Thank you for that. Just from a margin perspective, going into, say, 2022, 2023 timeframe, as per Andy's comments, if material handling is going to start becoming a smaller portion of revenues, what kind of impact on the margins should we see from this shift in revenue mix? Paul, you want to take that? One thing we've proven. Yeah. Can you hear me? One thing we've proven is scale matters, and because, as Andy said, I think in the past, we're actually using a lot of the core technologies and resources that we have to go into these other markets. It's not like they're completely new business channels that take their own resources and own technologies and completely independent. There's a lot of leverage capability. Our forecast and plan are to keep moving north. I think you're going to see a progression over the course of this year. For the full year should be in the high teens and then even ending the year, we may be approaching 20% or north on a run rate basis. I think you're going to see that continue on into 2022, and all these businesses will be accretive holistically as we continue to grow and scale from there. Got it, Paul. Thank you, guys. That's all I have. Appreciate it. Okay. Take it easy, Amit. Thank you. Our next question is coming from Tristan Richardson from Truist Securities. Your line is now live. Hey, good morning, guys. Good morning, Tristan. How are you today? Doing well. Thanks, Andy. A quick question on the data side. I think on the update call, you talked about a potential data customer this year. Do you still see that as the case? Can you talk about scale here, either with the opportunity set with this customer? Is it possible you could see a data customer elevate to the level of a pedestal customer, or is this kind of more of an early days pilot type of deployment for now? Oh, good question, Tristan. We'll be doing our first large-scale stationary backup deployment with one of the largest data center customers in May. The work on that shipment's happening as we speak, and that customer could be one of our largest pedestal customers and there are plans of how this business can roll out in 2022, 2023, and 2024, as that customer has come to the conclusion that fuel cells and hydrogen, over the next few years will be very, very cost competitive with large scale onsite diesel generation. On top of that, you have additional value of the sustainability aspects of green hydrogen, coupled with the fact that a lot of these large data centers, noise pollution is a big, big issue. That's helpful. Thanks, Andy. Just going back to the margin question, I think talking about accelerating margins through the year, kind of exiting with a two handle when instead of a teen handle, thinking is this purely a function of scale? I think we thought of fuel supply, as being margin accretive at some point on the timeline. Curious if that is a driver or the fuel supply potential is more out into 2022 and beyond. I'll give you my quick answer and then I'll hand it off to Paul. It won't be until late 2022 that the hydrogen margins will significantly increase until we have our bigger sites online. There will be some improvements in this year. We're expanding our own site in Tennessee, plus we're beginning to take over about 15 to 20 of our traditional sites with our plant in Tennessee, which will help our margin. The real margin growth will happen out in 2023. For the hydrogen business, Paul, you may want to comment on that. T hat's right, Andy. Across all the businesses, it's the similar themes that we've shared in the past. There's overhead leverage, there's supply chain leverage, there's design enhancements going on. There's vertical integration opportunities that we've made that we're starting to leverage and scale. Those themes are paying dividends in all our businesses from a margin enhancement. You even see some of those themes even in our current fuel business as we grow at scale. We're going to get that margin appreciation, accretion, largely from those core themes. As Andy said, in terms of a significant contribution from the fuel side, it'll be middle of 2022 on into 2023 as that starts to pay off. That's really helpful. Then one just last one, if I could. I think on the update call you mentioned, the auto industry with respect to materials handling may actually be more intensive on a unit basis per site. Is that still the case? Is the 500-700 units per site is still a good high- level way to think about the opportunity? Is it the four sites is still kind of the near- term potential for your fourth pedestal customer? I think in general that's obviously different sites can be different size, Tristan. I'll give you an example. Our BMW facility in Spartanburg has well over 700 units. Some of them may not immediately be 700 fuel cells. There can be, because the way auto factories are structured, there can be some gradual deployments in some of those facilities. That's not a bad number to be thinking about. I think I would add on top of that, I think there is an opportunity with the new Pedestal customer that the expansion could go quicker. That's great. Andy, Paul, thank you guys very much. Thanks, Tristan. Thank you. Next question is coming from Moses Sutton from Barclays. Your line is now live. Hi, Andy and Paul. Great to catch up. Good morning. Good morning, Moses. How are you? Good morning. Good morning. In the 2024 guidance, the $1.7 billion, can you break out specifically third-party hydrogen? I know you group them together with electrolyzers. How do you expect to sort of see the long-term offtake on those contracts? As you complete the plants, you'll have some rolling contracts, or do you expect to have more spot price exposure? There's actually a reason One of the items we think about all the time is, there's opportunities in the electrolyzer space and why I put them together, where we're working through whether we sell equipment or whether we sell green hydrogen. That's why I'm a little bit hesitant to just pull it all out today. I'm thinking of one deal specifically that could be huge and it could go either way. It could be a really great offtake for our green hydrogen. That's, Moses, we've been trying to work these deals going both ways with people because of our capabilities. When you think about the spot price and I think I'm going to give both an input and an output side answer. On the input side, Sanjay has really done an incredible job in the negotiation of these contracts, to really have a mixture of how one thinks about grid power, how one thinks about RECs. For renewable content, how one thinks about any third parties that can help bridge any power gap. We have been negotiating set price contracts on the input side. On the output side, some of our customers, i.e., the big material handling customers, it will be a set price. We also have a set price of electricity, so it's very well controlled. The spot market is probably a real opportunity for us to sell and have significant margin enhancement upside when we look at some of the spot pricing going on. Our main concern, though, is making sure we provide customers who are, especially commercial customers, green hydrogen that's cost- competitive with gray hydrogen, cost -competitive with diesel, so that they accelerate the deployment of their fleets, be it material handling, be it on-road vehicles, be it backup power or generation, by using green hydrogen at a price they can count on. That's very helpful. Thanks. Paul and Andy, you both discussed margin expansion. I don't see adjusted EBITDA guidance or reconciliation in the investor letter. Is the metric no longer going to be provided? What would a general range look like for 2021 and even an update on the 2024 from the $1.7 billion? D uring the call, for 2021, and Paul, I'm going to let you jump in after I did. We're targeting revenue and gross billings almost now are equal, Moses, with the acceleration of the warrants. We're looking at $475 million revenue at margins in the high teen percentage for gross margins, and expenses about 30% higher than the run rate of last year. Paul, would you like to add to that? Last one for me. On Walmart GenDrive, I noticed in the letter, you quote 9,500 or above 9,500 in operation. I think you've noted like 10,000 or more operational as recent as last May. Were any taken out of operations or am I not looking at an apples to apples metric there? I can tell you I've deployed more units, so I'll say this. The answer is the number of units of Walmart's increased, and this year, as we've noted, we're actually beginning to move into other applications in their internet centers or their internet distribution centers, where we have three sites already moving and more coming. Moses, we'll be happy to help you reconcile that. I can tell you we've sold more units and the business is growing. Got it. Thanks. Okay, great. I'll take that offline. Thanks. Thank you. Next question is coming from Paul Coster from JP Morgan. Your line is now live. T hanks. Good morning. Thanks for taking my question. Good morning, Paul. How are you? I'm good, thanks, Andy. First up, I noticed in the press release that you're looking to deploy about $125 million of expense in New York State to build out the gigafactory, which I'm sure is very welcome there. That sounds high relative to what my prior understanding was for the cost of the gigafactory at around about $45 million, $50 million. Am I just misreading that? I think part of that, Paul, and I'll let you add in, I think part of that's expense dollars over the coming years as far as personnel. Should we, though, assume that the gigafactories, CapEx only, are still in that $50 million range as you start to drop them in? The $50 million is right, Paul. Okay, got you. It seems quite a fairly modest CapEx, which is great, except that it also suggests that the barriers to entry for others are fairly low. Now, obviously, there's IP and know-how of all kinds involved, but how do you respond to that thought, Andy? It's actually things you may not think about is electrical generation required for a facility. I can tell you, first, we went into a building and selected a building because it was an old Alstom switchgear factory that has incredible levels of power provided into the building that allows us to build large-scale electrolyzer systems, test all these there. I think future buildings, we won't be as lucky, and that I think you'll probably see costs being 25%, 30% higher. What about the argument that it's not very high barrier to entry for others with competence in PEM technology to get into the gigafactory business? Well, I would step back and say that, first, you have to have customers. Actually, I should start by saying, Paul, first you have to have the technology. We have folks who have actually been working on MEA development for over 30 years when you look at their background, even before Plug. I think you have to take a step back and have people who've been developing fuel cell stacks and making enhancements for 25 years, and have thought through the manufacturing process from roll-to-roll processing to stamping and plate. I look at, there's both the, as you mentioned, IP. There's also the issue of what I always kind of refer to as tribal knowledge, which I think people always underestimate. I think there's the issue of having the capital wherewithal to make the right investments to build out the factory at the right place. When you look at the facility itself, we've been able to get incredibly low rates for electricity to support this effort. The fourth item I think people often have an issue with is you've got to have the demand. I'm already at Plug Power thinking about, as you could see, building the next gigafactory in Korea to really help the build-out. Got you. Thank you very much. Thank you, Paul. Thank you. We've reached the end of our question- and- answer session. I'd like to turn the floor back over to Andy for any further or closing comments. Thank you, Kevin, and thank you, everyone, for joining the call today. Looking forward to speaking with everyone in our first quarter update call. Thanks again, and talk soon. Bye now. Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.