Greetings, and welcome to the Plug Power January 2022 business update call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If you would like to ask a question, you may press star 1 on your telephone keypad. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Teal Hoyos, Director, Marketing Communications. Thank you. Please go ahead. Thank you. Welcome to the January 2022 business update conference call. This call will include forward-looking statements. These 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 and Section 21E of the Securities Exchange Act. 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 risks and uncertainties discussed in our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, 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 as a result of new information. At this time, I'd like to turn the call over to Andy Marsh, Plug Power's CEO. Good morning, everyone. For the past 5 years, we have annually used this January call to lay out our expectations for the coming year. This call provides investors an opportunity to precisely hear our goals for 2022 and gain some insight into our execution strategy. In this rapidly expanding market, we will certainly call some audibles after thoughtful deliberations if we can create additional value for our shareholders. I should also emphasize that we have never entered a year with such clarity due to our backlog and our detailed strategic roadmap. Let me remind the audience what this session is not. This call is not our Q4 earnings call, which will be held on March 1. Plug is a company that can provide products and services for the entire hydrogen ecosystem. This is unique. We can generate hydrogen, like at our plant in Tennessee. We can distribute hydrogen using our own liquid and gaseous hydrogen trailers. We can operate fueling stations like at Walmart and Amazon and can serve a multitude of fuel cell applications in this growing hydrogen space. In the presentation today, I will lay out clear metrics for each end market for 2022 so investors can measure our progress throughout the year. These metrics will not only be a strong indicator for this year, but ultimately to reach our 2025 goal of $3 billion in revenue, 20% EBITDA, and 17% operating income. To achieve this goal, Plug needs to be global. In 2021, Plug established a global footprint. We're in Europe with our facilities in Germany and the Netherlands, and with Renault in France and ACCIONA in Spain. In Asia, we have over 150 employees in India to support the global electrolyzer market and stationary power market. Additionally, in Asia, we'll be deploying projects with SK via our joint venture and starting our joint gigafactory in South Korea. In Australia, we'll be building a factory with Fortescue Future Industries that will produce electrolyzers for the generation of green ammonia and hydrogen, much of that hydrogen to be used to power Plug ProGen fuel cells. Additionally, we now have sales offices in the Middle East and South America. Without question, Plug and our 2,500 employees are global. These employees are designing and building hydrogen plants like our facility in Western New York, leveraging our new 155,000 sq ft gigafactory in Rochester, New York, and fuel cell products manufactured at our Latham area facilities, and soon, by the end of Q3, our 300,000 sq ft manufacturing and distribution center in Bethlehem, New York. We also have over 200,000 sq ft of manufacturing facilities in Houston to support our cryogenic trailer business. These facilities will service our partners and customers. Let me just rattle off a list of some of our customers and partners. Amazon, SK E&S, Orascom, Fortescue, BMW, Renault, Home Depot, Lhyfe, Walmart, Mercedes, Acciona, Linde, Solandis, Certarus, and many, many more. Now let me turn to our energy business. I really like the mission of our energy efforts, which is concentrated on being one of the largest global energy companies focusing on displacing diesel with green hydrogen. We're also not forgetting the opportunity to displace gray hydrogen and natural gas in a multitude of applications. We've announced four plants. These plants are in New York, Georgia, Texas, and California. Our goal is to generate 500 tons of green hydrogen per day in the U.S. by 2025, building the 1st nationwide network, and by 2028, have 1,000 tons per day of green hydrogen globally. 2 of the plants are under construction in New York and Georgia as I speak. Let me review the New York plant at a high level. The electrical feedstock is from New York Power Authority, with electricity generated using hydroelectric power. The electrolyzers are Plug manufactured. The trailers for delivering liquid hydrogen are Plug via our acquisition of Applied Cryo Technologies. The other key component is the liquefier coming via a 3rd party. The liquefier is a device that takes gaseous hydrogen and creates a liquid hydrogen. Even though we will continue to work with 3rd parties, we've been seeking an acquisition to accelerate this technology. Let me remind the audience that hydrogen is needed in liquid form because of its superior energy density versus gaseous hydrogen, lower transportation costs, and ultimately, we believe for powering long-haul shipping. Plug has identified this as a key technology that we require in our portfolio. This is the reason Plug purchased Joule on Friday. Joule is an expert in LNG equipment, converting natural gas to liquid natural gas. The proven liquefaction technology that Joule has developed for the LNG market is directly applicable to hydrogen liquefaction. One of the challenges facing the industry is improving the efficiency of hydrogen liquefiers. Joule has a plan that can reduce the electrical cost to liquefy hydrogen by 25%. For 500 tons of production, that would save us $20 million per year when based on 3 cents a kWh electricity cost. This will also represent a capital expenditure saving for Plug by building the equipment in-house. In the next 4 years, we anticipate savings of approximately $200 million. We are also forecasting a large potential market for this equipment that could generate a quarter billion dollars of revenue annually for Plug with potential customers like SK in the future. Plug purchased Joule for $30 million with a future earn-out based on meeting the efficiency targets and sales and gross margin targets. Going back to the energy business, here are our 2022 goals: 70 tons of green hydrogen production by year-end. Starting construction of 3 additional plants. Execute long-term purchasing contracts for 200 tons a day of green hydrogen. Working with partners to develop a strategy for hydrogen pipelines and large-scale storage, for example, salt caverns. Now on to our electrolyzers activities. Here's a block diagram of the green hydrogen project with Orascom. This looks very similar to our plants, except the hydrogen feeds an ammonia plant that today with nitrogen and gray hydrogen create ammonia that is ultimately used in fertilizer production. This green ammonia can be used to power a ship. The ammonia plant will replace gray hydrogen with green hydrogen. The only change in the operation, this market is analogous to our material handling fuel cell products, where we could leverage the present infrastructure, in that case, the electric forklift truck, and substitute a fuel cell for a battery. These are markets that can be scaled rapidly. Why did Roskom choose Plug? Our leadership as a product and technology leader. Scale of our gigafactory to produce goods. This is really unique in the industry. The smaller footprint of PEM electrolyzers versus alkaline electrolyzers. Our goals for this business are clear. We're going to ship 155 MW electrolyzer products in 2022, have at least a 1 GW backlog by year-end, and successfully develop the Australian market with our partner, Fortescue. Market is a much bigger opportunity than outlined above. Policy development could dramatically accelerate the opportunity. We believe our bookings could be 2 to 3 times larger than outlined. In the U.S. alone, policies could allow the cost of green hydrogen to be on par with gray hydrogen immediately. I think a clear sign of the potential for acceleration is the sales funnel sits at approximately 7.5 gigawatts a day and growing. Successfully globally growing our electrolyzer solution business is clearly a top priority for Plug. Now let me turn to our fuel cell activities. Here's another diagram that shows the Plug offering, in this case for distribution centers. This is a mini hydrogen hub that includes electrolyzers to generate hydrogen, fueling stations for on-road vehicles and stationary products to back up the building. You know, to many people, this is a schematic. To Plug, this is our offering. Let us now turn to our first business material handling. Plug now has 5 pedestal customers, which was our goal by 2024. We are three years ahead of schedule. In 2021, we shipped 12,800 GenDrive units and built 49 hydrogen fueling stations, both records. In 2022, we have established the following goals for material handling, $600 million in revenue. We have had that. When you start looking at gross margins, our GenDrive products have regularly exceeded 30%. In 2022, we expect significant improvement in our service cost material handling, which will allow our service activity to achieve gross margin neutral by year end. I think really critical is we're going to add three pedestal customers, with at least 2 in Europe. Finally, we have under development a simplified hydrogen fueling station that allow the use of fuel cells at smaller site. This segment of this business has done a remarkable job. Our present customers tell us they would not have been successful in shipping their products to stores without our offerings. Some of these customers will be accelerating their purchases during the coming year. Reliably delivering hydrogen to these customers is vital. Our ability to manage a hydrogen force majeure in the U.S. would have never been possible without our service team and energy team. Their work makes our green hydrogen business and other fuel cell offerings even more attractive. As many now know, hydrogen will be a critical element to meet their sustainability goals. Let's talk about our new market activities, starting with on-road vehicles. We couldn't have found a better partner than Renault for our European efforts for their 50/50 JV. HYVIA continues to lead in H2 mobility. HYVIA has three vehicles this year after the formation of our JV in the Q2. This includes the Renault Master Van H2-TECH, the Renault Master Chassis Cab H2-TECH, and the Master City Bus H2-TECH. These products can move both people and goods. These products are powered by Plug's ProGen technology, which leverages our leading-edge stack technology. During this year, we've released our 125-kilowatt ProGen module that can be used on on-road vehicles, stationary products, and aerial applications with such customers as Universal Hydrogen. Plug also brings to HYVIA JV our expertise in hydrogen generation and fueling stations. With HYVIA, we are offering customers a turnkey solution, as the industry in Europe alone expects to have 250,000 vehicles with this JV by 2030, with this JV targeting a 30% market share. We are targeting to move into heavy-duty vehicles. We've been deliberate in choosing a partner to move ahead, but we will be able to provide the market clarity by the end of the first half of 2022. Plug also has built a large-scale stationary product. You know, I drove in and looked at it when I came in today. In the first half, we're targeting shipments to provide power to back up data centers, generate primary power to the grid, and powering electric vehicles. Near term, the biggest opportunities are actually powering electric vehicles and providing backup power with some pedestal customers. In the midterm, the big market will be data centers and primary power products for customers like SK E&S. These products for these markets are not easy, and not being easy provides us a differential advantage. The base ProGen module provides us a scalable solution to address multiple markets. The integration of these modules into vehicles is one of Plug's core competencies. Large-scale stationary products are complex. Our engineers are experts at turning complex problems into simple-to-use products. This is the Plug difference. Our goals for 2022 for new markets are really clear. A range for 10 customers for our HYVIA vehicle offering, we already have 7. Establish a clear heavy-duty vehicle strategy for on-road via partnerships or acquisitions. Position Plug to ship 1,000 on-road vehicles in 2023. Ship megawatt-scale products to 3 customers by the end of the second quarter. Look, this business will start delivering revenue $50 million this year, and we expect $300 million future sales commitments by year-end. Now, I'd like to turn to policy. Now Plug, you know, and personally also, I am actively engaged in global policy discussions from membership in global organizations to our active participation in helping steer U.S. policy via the national organization, FCHEA. Policy is accelerated for this business and global policy has been receptive to hydrogen to achieve countries' global CO₂ emission goals. In Europe, the 80 gigawatts of deployment by 2030 presents a big opportunity for hydrogen activities for electrolyzers and plants, but also for our HYVIA business. Korea policy also aligned to support our large-scale power offering. Let me turn to the U.S. The infrastructure bill has $8.5 billion for at least 4 hydrogen hubs and $1 billion for electrolyzers. Work also continues with the DOE loan office to help accelerate our build-out of hydrogen plants. As the leader in the U.S. in the generation of green hydrogen and fuel cells, we have been working with states across the country, utilities and other partners to compete for the hubs. In New York, many government officials and utilities are supporting these efforts. The impacts of the hubs are not in our calculation for the coming year, but will be a boom for future years for the deployment of our products and generation of hydrogen. Look, like many, we've been disappointed that Biden Build Back Better plan package did not become law in 2021. The substance of the energy package to support hydrogen has been strongly supported by Senator Manchin. Many believe that by April 2022, many parts of the package may be passed as individual bills. The tax credit for green hydrogen at $3 a kilogram and the extension of the fuel cell tax credit could dramatically increase our business. Within Plug, we're doing detailed planning to support the supply side, especially for electrolyzers if this bill becomes law. As mentioned previously, green hydrogen will instantly become competitive with gray hydrogen. One should ask, why would anyone buy gray if they could buy green hydrogen? I can tell you that the answer is the limits of the scale to the limits of the scale of green hydrogen and electrolyzers to replace SMRs will be limited by supply. During this call, we provided targets and objectives for each of the markets we participate, which happens to be every part of the hydrogen ecosystem. I would ask our investors to track us against these individual goals during the year. I would suggest our transparency and details about our objectives is unmatched in the industry. From a big picture, the key goal for Plug is revenue for 2022, and I would like to reiterate that goal. $900 million-$925 million in revenue at 80% growth over 2021. The work we did in 2021 has positioned us for a strong 2022. Now let me brag and just kind of reiterate some of that. We established our joint venture with Renault, SK and ACCIONA, supporting our on-road vehicle strategy, stationary power business and energy business. A partnership with Fortescue Future Industries for a gigafactory, enabling, among other things, the build-out of green ammonia and hydrogen. We achieved five pedestal customers for our material handling business in 2021, three years ahead of schedule. We have a backlog of 155 MW of electrolyzer products to deliver in 2022. A big win with Orascom for our electrolyzer business for a green ammonia plant in Egypt. We launched our new gigafactory in Rochester, N.Y. I can't wait to bring you all there, for stacks for both PEM fuel cells and electrolyzers. We completed the design of our 125 MW fuel cell engine, as well as building out our first stationary products. I think this is really critical, and we've built a management team that will allow us to scale this business. For example, Dave Mindnich, who joined us from Tesla, has built a team that can allow us to scale our operations for the next decade. We believe one of our key differential advantage is our leadership team and the capabilities that run deep throughout the organization. In 2022, the steps we outlined in this pre-presentation will allow us to achieve our goals for 2025, which to reiterate one more time, $3 billion in revenue, 20% EBITDA and 17% OI. Plug, we dream big and we plan to be a big winner as our customers in the world turns to hydrogen to reduce 20% of the world's global carbon footprint. I want to thank you for listening to, you know, a long presentation from me. I usually don't do that on the call. Paul and I are now really happy to take your questions. Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star one to register a question at this time. Our first question is coming from Colin Rusch of Oppenheimer. Please go ahead. Thanks so much, guys. Andy, the fuel and service business has been, you know, a real challenge, you know, given all the headwinds in 2021 and even before that. I'd love to just get a bit more detail on the cadence for the margin improvement and the drivers of that margin improvement as you go through the balance of this year. I think it's a goal that's really pretty meaningful for a lot of folks. Great. Colin, I'll let Paul take that one. Morning, Colin, and thanks for the question. I guess a couple different things. 1 is, you know, we've been pretty transparent as you know, and then you referenced it. Last year, there was a number of force majeure issues. Those have been resolved, you know, and that was a pretty big distraction. We also went through, you know, a key transition with some of the vendors that we talked about in the Q1 last year. As we enter this year, you know, a number of things are unfolding. We're actually turning on new capacity in the second half, which is going to have a step function change in the margin profile, being able to produce that fuel at half the cost we're paying today. We're actually increasing capacity in our Tennessee facility and actually able to extract more, you know, hydrogen out of that, which is a margin beneficial factor for Plug. We're also looking at other sources in the short term of how to tap into new hydrogen solutions that, you know, help us reduce that cost. The other big piece is efficiency. You know, we've learned we're the largest, you know, reseller of liquid hydrogen in the world. Using the systems that we've done, the learnings that we've had with acquisitions like the ACT acquisition and bringing on and able to ramp up our own distribution capabilities, we're able to impact that dramatically. You're going to see progression this year, and then you're going to see step function change really kind of first of 2023 onward as we migrate more and more of the new sites and even some of the renewing sites into our own capacity as we move forward. That's kind some of the key drivers that you're going to see in the short term, midterm, and long term. How about service, Paul? Yeah, you didn't ask about service, but I'll just comment on it, because that's the other big challenge for us. You know, we had a number of interesting dynamics. One is, the mix of units in our service portfolio is incredibly favorable, you know, directionally for us, given the number of. I mean, look at last year, we did 32 sites with Amazon, and those were all new units with a much better service profile than what we've had in the past. And then you look at the resources that we've added over the last 12 months. Even though, you know, force majeure fuel issues and, COVID and other things have had some distractions for us in terms of, supporting the growth and still meeting some of our reliability investments, we've actually almost tripled the number of people that we've got specifically focused on reliability measures. The learnings that we've gleaned, you know, with some of the things that we're doing, you know, are going to have tremendous impact in the service profile this year. Then again, as we continue to layer in newer units with better technology, more, you know, the best, latest and greatest, and some of those legacy programs wind off, you know, holistically, you're going to see a progression in that margin profile to the point where, you know, maybe even as of year-end, we're break even to slightly moving positive in that business, which is an exciting milestone and on the right direction to get it to 30% over the next couple years. That's super helpful. Shifting gears a little bit in terms of the growth of the green hydrogen production capacity. You know, would love to get an update in terms of, you know, site identification and development, and more importantly, around procurement of power. You know, we're seeing, you know, a significant growth in demand for green energy and securing, you know, PPAs at reasonable levels to keep your cost structure in check seems incredibly important as you grow that business. I just would love to understand where you're at in that, you know, identification of the sites and the procurement process. Sure. Colin, we have 16 sites identified that are serious across the U.S. One of the items we don't want to do is to tell people where those sites are. In general, we are targeting under 3 cents a kilowatt hour for electricity, which we have achieved at the sites we've announced. As you know, we have the one site which is being constructed outside New York, which will be up to 45 tons a day of green hydrogen. We have another site that's being constructed in Georgia on the border between Florida and Georgia by the major highways. That'll actually be producing some green hydrogen in this February, but that plant will be 15 tons and a little bit more by the end of the year. You know, as I mentioned during the call, we'll have additional sites under construction by year-end, and I think with what we've secured, we're on a good pace to reach that goal. Great. Thanks so much, Andy. I think what really differentiate, Colin, is we're actually building stuff. I mean, I know there's a lot of announcements out there. I see them. I know, but, you know, we're actually building it now and have it available now. Quite honestly, it helps our electrolyzer business. You know, I went through the activity with Orascom, and you know, one of the advantages was we actually knew how to build a plant. I think that made us a much more attractive partner than some other folks. That's super helpful. Thanks, guys. Thanks, Colin. Thank you. Our next question is coming from Stephen Byrd of Morgan Stanley. Please go ahead. Hey, good morning. Thanks so much for the update. Good morning, Stephen. I wanted to dive into a couple of topics in more depth. 1 topic was sort of over time, the relative size of your electrolyzer and hydrogen business, the revenue there versus material handling. You know, in the past, you've talked about electrolyzers and hydrogen sales being bigger than material handling by the sort of 2023 to 2024 timeframe. I just wanted to get your latest thoughts in terms of how you think about the relative size of those two sides of your business. Sure. I'm going to let Paul talk a little. I mean, when I look at the electrolyzer business, I would expect it probably will, by 2023, surpass our business in material handling. With the amount of activity, and look, you know, we have a funnel of 7.5 GW at the moment. That may be understating the funnel. You know, I can tell you this week, you know, I'm working with people on at least 2.5 GW of projects, which I didn't know about on January 1. So, it is. To me, it's clear that that market's growing. Look, I think a lot of it will be in activities where it's easier than you know, having to think through whole new infrastructures. You know, I mentioned with Orascom Construction, we can substitute. I see that happening sooner. I think for the generation business, you're probably talking 2025 just because of the build-out of the plants until it exceeds material handling. Paul, you want to comment on things? Yeah, I think that's right. If you know, you go back to the symposium, we gave some guidance. You know, the really exciting thing for me is the pipeline. I mean, these projects are really big, and we're just starting to to really touch the surface of these opportunities. We're uniquely positioned to deliver it. As Andy said, you know, it's not. It's something that we know how to do and can do and, you know, are well, you know, uniquely positioned in the world to do this. I think, you know, even as of next year, we could be one of the largest electrolyzer companies in the world. If not, we will be. You know, maybe even this year. It's pretty exciting, and I think that there's a lot of upside in that business beyond even what we've shared even in the supposing. That's really helpful. Just a separate topic here on Build Back Better legislation. We totally agree that legislation really is a game changer for green hydrogen in the United States at least. You know, we're quite excited about the prospects there. You all mentioned in your prepared remarks a bit about some of the planning you're doing there. Let's say that the legislation passes essentially as we've seen it in the draft, so $3 a kilogram and the extension of the fuel cell tax credit. Could you talk a little bit more about what that potentially might mean in terms of, for example, your CapEx plans and the pace of opportunity there? Just given the size of the gray hydrogen market, we honestly struggle with translating that into, you know, what you might do. I mean, the size is so big in terms of that market. How quickly could that accelerate what you're already doing, given that you're not exactly standing still now? You're not exactly growing at a low rate right now. How might that impact your growth and your CapEx plans? Let me talk about the electrolyzer business. Stephen, I could see us doing two activities in the electrolyzer business. I can tell you already we're working with, especially ammonia producers, around the world and here in the U.S. on how, you know, we can timely migrate their plants away from gray hydrogen to green hydrogen. You know, those plants, we've even thought about, in discussions how part of that could be used for our own production, and part of it could be used for their own operations. I you know, it's hard to put a real number on it, but I you know, I mentioned during the talk that you know, I could see that in 2023, our electrolyzer business could be 10 times what it is in 2022. Steve, that's not a commitment. Yeah. I can just see the kind of momentum that's going on. For our green hydrogen business, it's probably the impact seen more, you know, late 2023, early 2024 just to get the plants built. The kind of goals I outlined where it's bigger than material handling by 2025, it will be bigger than material handling in 2024 if that bill passes or anything that looks like that bill. You know, as you know, there's lots of work going. You know, it's interesting, the climate aspects, especially for hydrogen, do not seem to be a lot of disagreement on. You know, as you know, most of the debates going on social aspects and we feel that there's a good chance it can pass this year. That's really helpful. Thank you so much. You're welcome, Steve. Thank you. Our next question is coming from James West of Evercore. Please go ahead. Hey, good morning, Andy. How are you? Hey, James. Okay, how about yourself today? I'm doing pretty well. Thanks. I'm curious with respect to the green hydrogen build-out here. I know you're negotiating some offtake agreements now. When do you think we should start to see announcements for the offtake and customers signing up for those agreements? James, I think you'll see it by the end of the first quarter, some. Oh, wow. Okay. We already had the smaller one with Certarus. Right. We have 2 that the lawyers are working through at the moment. Okay. Okay, perfect. You mentioned 16 industrial sites that have been identified. What should we expect for the cadence of announcements there on the build-out? Yeah, you know, James, I probably will announce them coherently with the construction start. Right. Okay. Just because I don't want folks to know where I am. Okay. Gotcha. I would expect 3-4 this year. Okay. Last for me, you mentioned three additional pedestal customers. Same thing there. We're getting pretty close on agreements? Yeah. I'd expect at least one call by the end of April. Okay. if not earlier, and the other two throughout the year. Okay. A lot of good stuff coming. Thanks, Andy. Yeah. You know, James, I hope this really makes it clear for everybody you know, what we expect will happen. That's why I tried to deal with these goals today with the team. Got it. Perfect. Thanks, Andy. Okay. Thank you. Our next question is coming from Eric Stine of Craig-Hallum. Please go ahead. Hi, Andy. Hi, Paul. Hey, Eric. How are you today? Morning, Eric. Doing well. Maybe I know you reiterated the 2022 guide, but just to square up a few things there. First, I know you upped the electrolyzer shipment target, and obviously you're working to a you know a much larger number. Just in the near term, you upped that, kept the guide. I mean, is that something we should view as kind of a source of upside, or is that something that you had maybe already factored in back at the symposium? Run that by me again, Eric. I'm sorry. Um, so you- I didn't get- You reiterated 2022, right? Yep. The guide. But you upped the electrolyzer shipment. I'm just curious, I mean, should we view that as, you know, you being conservative and that there's upside to that guide as a result, or is this something that you had already factored in, that you were going to take up this electrolyzer shipment target? Eric, throughout the, you know, one of the items that we've done, I think, well during the past year is that we've gradually upped the targets once the numbers become more and more firm. You know, you know, again, you know, we look at the 900, 925, and I can sit here and say, I'm not going to be debating with you guys whether we made it or not. You know, as things become the, you know, as more activity becomes clearer and clearer, I wouldn't be surprised if we throughout the year, you know, increase numbers if, you know, the crystal ball becomes clearer. I think we all looked at this number and said, you know, we're not going to be sweating it. You know, I wouldn't be surprised if gradually throughout the year, we've increased the numbers. Got it. No, that makes sense. Maybe to turn into Joule. I wanna make you guys look good too, Eric, by having the right numbers. There you go. Well, maybe just on Joule, that acquisition, you know, does that factor into the 2022 guide and what you just said that potentially you take it up throughout the year? I mean, is that an acquisition that's more about lowering the cost and you internalizing this rather than a revenue impact? I see it as our focus with that one is technology development, internalizing costs, as well as a big sales opportunity in future years. You know, the main focus is, you know, can we drive the power level down for liquefiers? Can we build in, which helps us on OpEx cost? Can we reduce our own internal capital costs for plant build-out? Look, we believe in liquid hydrogen, and we believe in the work they're doing. My Plug internal team here told me that this was the company that could really help us dramatically reduce our OpEx ongoing. Look, once as we do that, we'll be looking for more sales opportunities, but we don't see it as a big, huge revenue upside for this year. Okay. Thanks a lot. Okay, Eric. Thank you. Our next question is coming from Bill Peterson of J.P. Morgan. Please go ahead. Good morning, Bill. Good morning, and nice to speak with you guys this morning. I have a question too. I understand the potential upside. I guess, in light of the prior question with increased, you know, visibility on electrolyzers, you have, you know, good visibility on some other projects. Is some of the, if I call it, conservatism related to supply constraints, just as, you know, a lot of countries still have lockdowns, no COVID policies? I'm just curious on how that might be playing a role in your view today, or is it more just that you haven't yet booked some of this business and want to, you know, leave room for the upside? Yeah. Bill. Good question, Bill. Look, I'd be unrealistic to say that there aren't, you know, that we're not working supply chain every day. You know, we did a remarkable job last year almost doubling the business. I think we did double the business versus 2022-2020. Yes. I just do worry about, you know, we work it every morning. I have a call every morning 1st thing about supply chain. You know, that's always in the back of my mind, and it's always in the back of my mind whether people may slip a Q4 into first quarter of 2023. You know, it's kind of after doing this at Plug for the last 14 years and after being a CEO for the last 20 years, I recognize things can move around a bit. I think on top of that, the challenges with the supply chain at the moment, I think being a bit cautious early on is probably a smart move. That makes a ton of sense. On the fuel cell business and particularly some of the newer parts, things like HYVIA and the stationary. You put in the slide deck that stationary, you're having some customer deliveries here in the H1. Does that mean there's still potential shipments in the second half? I guess on the HYVIA side, should we assume that that's pretty much back-end loaded? I'm trying to get a feel for how we should- Yeah ... be thinking about conceptually on the trajectory of your fuel cell business. Yeah. I see HYVIA starting to move late Q2 with the delivery to 10 customers. I think on the stationary business, you know, I could see us shipping. You know, these are big. I look at the product. This is a big product. I could see us shipping 10 to 12 more in the second half of the year. Okay, that's great, Colin. Thank you, and good luck this year. Thanks, Bill. Thank you. Our next question is coming from Joseph Spak of RBC Capital Markets. Please go ahead. Thanks. Good morning, everyone. Good morning, Joseph. Good morning. Just for maybe if we think about 2022 as the full year, and I know that, like, the cadence is going to look different throughout the year 'cause you're adding the capacity. But what do you think the mix of produced versus bought hydrogen delivered to customers is going to be like? Yeah. I would think, you know, we'll produce about 10 tons a day ourselves. I'll let Paul add on, about 10 tons a day ourselves. You know, probably 50 tons purchased per day. I think by year-end, you can see us, you know, we'll still be purchasing hydrogen from third parties, but we'll be generating 70 tons a day ourselves, which some of that'll go to our present customers, and some of that'll go to external sources because it'll be more profitable selling it on the spot market or through contracts we're developing. Okay. Maybe that sort of actually somewhat addresses maybe the follow on. Like, what percent of the green hydrogen you intend to produce, and we can talk about this not maybe in 2022, but maybe more at scale, like how do you sort of think about what portion of that goes towards Plug fuel cell powered devices? Yeah, I'm going to give you a complicated answer, Joe. I would just say this, we will produce more than we use, and we're already working on swap agreements with some of the industrial gas companies today. You know, I may be buying 30 tons from somebody, but they also may be buying 30 tons from me. I would answer that question by saying that, you know, by the end of this year, my capacity will exceed my use. We will still be buying hydrogen from other parties, but we also will have swap agreements where they will be buying hydrogen from Plug. Okay. Just one quick one on electrolyzers. You know, you mentioned the 1-gigawatt backlog. How long is it going to take you to execute on that? Does that include anything from the Fortescue JV, or would that be additive to that number? Sure. The 155 MW for this year, which is in backlog, does not include what we expect to do with Fortescue. That's additive. We also, you know, the 1 GW is what I'm targeting as backlog by the year-end 2022. As I mentioned in my prepared remarks, we think that could be 2-3 times larger. Obviously, if the tax credit goes through, it even could be significantly larger than that. Roughly let's say if it's a gigawatt, like how quickly can you run through that? Like, how quickly will that actually roll on? I think we could roll that on, a lot of that in 2023. Okay. Thank you. You're welcome. Thanks. Thank you. Our next question is coming from Alex Kania of Wolfe Research. Please go ahead. Morning, Alex. Good morning. Hope everybody's well. Just a couple, maybe follow-up questions. I think first is just a simple one, just the Orascom timing. Is that 2023 delivery or is that in the 2022 backlog? Twenty-two. 22. Okay. Got it. Just thinking about the DOE loan program and maybe some associated kind of ancillaries on the bipartisan infrastructure bill on the hub, what would getting the loan, a loan on, you know, for this construction mean for either from an accounting purposes or cash flow for this year? I know, and correct me if I'm wrong or if things have changed, but you've talked about maybe 750 of capital this year. You know, how would that change and maybe what would the timing be on that? Just on the Hydrogen Hub question, what maybe a little bit more help on just what the opportunities are that you see from that. Paul, I'll let Paul take the first question. I'll help on the second question there, Alex. Yeah, I think, so, you know, we are actively working with the DOE on a potential program. We've talked publicly about that. It's probably a little premature to get into too much specifics, but I would just say that, you know, I would even step back and say, you know, we're moving forward and using our balance sheet to fund these programs. We don't really have much debt, and as we turn them on and proof of concept and start, you know, really, demonstrating this, there's tremendous leverage capability. If you think about each of these facilities kind of being $150 million-$200 million CapEx of each scale, must be plus or minus, there's a pretty big opportunity to leverage just that portfolio. That's not even in Plug's core business and the other things that we're doing. Fortunately, we've got a lot of liquidity. I ended 2021 with in total cash, like $4.5 billion, close to that number. We've got plenty of horsepower to fund the growth. I think between the DOE program and/or other sources of capital that we can tap into, which my position gets tremendously better as we move forward through the year, deliver this year's plans, and turn these green hydrogen plant facilities on in terms of accessing capital solutions with cheaper cost of capital solutions. You know, I don't think it'd be unrealistic to say it could be as much as half, you know, maybe even two-thirds of that number that we back lever. It's just a question of when and how and under what terms. You know, that's just one source of liquidity, but it's a big one. It could be meaningful to help offset that, you know, and really I look at it as recycling the capital really, right? As we think about 2023 and we move into that cycle, you know, I can fund a lot of that off of my current programs that we're building this year. Hopefully, that helps. Let me mention the Hydrogen Hubs, Alex. I would expect that you would see from the DOE, probably in the second quarter an RFP. You know, I think what at the moment is that you're seeing groups coming together to think through what their offering is going to be. The bill calls for four hydrogen hubs, but it could be more. I would think any amount of money in those hubs will actually be multiplied by private money. Here in New York, which we're actively engaged with, you know, this is going to be not only, you know, coordination between users, suppliers of equipment, utilities, governments. We've been working really closely with the governor's office, local utilities, so you know, obviously Senator Schumer on you know how we could leverage, for example, what's going on already in Western New York with our gigafactory and the plant in Albany, how you know that area could be turned into a large hydrogen hub. But you could almost think about the New Jersey, New York as one of the hubs. My take is that you know people are working together. I know we have plans with one of the local utilities that we're putting details on. That'll influence an RFP. I think you'll see decisions being made later in the year. I think one of the real advantage Plug has, quite honestly, is we are the largest American manufacturer of fuel cells and electrolyzers. We've done more in this space than anyone else. I can tell you, we probably are working 10-15 active efforts across the U.S. with potential partners and with potential states. When I was at COP26, for example, I met with two governors to discuss, you know, specifically hydrogen hubs. Great. Thanks very much. Hope that helps. You're welcome, Alex. Thank you. Our next question is coming from Greg Lewis of BTIG. Please go ahead. Yes, thank you, and good morning. Good morning, Greg. Just one for me. Realizing it's, you know, kinda, you know, we just talked about late last year at the symposium, but kinda trying to understand as I think about material handling and the, you know, GenDrives, what has kind of been the initial progress or moves on the medium side of the material handling business? How has that been progressing, and how should we be thinking about that this year and in the next? I think when I think about material handling, when you say medium-sized, you're kinda calling smaller sites. You know, we actually have started to do smaller sites with Amazon, where we've been able to prove out the value proposition. You know, one of the reasons that I'm sitting here comfortably talking about $600 million in revenue this coming year is because we're seeing with our, you know, pedestal customers, people like Home Depot, Amazon, and Walmart, we're beginning to migrate the offering into smaller sites. Okay, as we think about pedestal customers, it's probably safe to assume that if we're selling the, you know, into the larger market, there should be over time opportunities to expand into the smaller sizes? I'd say, and Greg, that's what we're already seeing happening with Amazon. Okay, perfect. As well as with- Thanks very much for your time. As well as with Walmart. Thank you. Our next question. Anyone? Yes. Our next question is coming from Gerry Sweeney of Roth. Please go ahead. Hey, good morning, guys. How you doing? Good morning, Greg. Hey, thanks. Thanks for taking the questions. Just a couple points of clarification on the green hydrogen plant. You mentioned four in New York, Georgia, Texas, California. What about the one in Pennsylvania? Didn't you have a 15-ton-per-day facility using Brookfield Hopewell facility? Is that still in the works? Greg, I think that's an example of us calling an audible, Greg, that I mentioned in my second sentence. You know, we looked at Hopewell, we worked with Brookfield. You know, one of the items we found about that facility is we couldn't expand it to as large as we wanna go. You know, for example, in New York, we're 45 tons a day today. We have the ability to expand to 75 tons. In Georgia, we have the ability to expand. In Texas, I, you know, I think we could easily get to 75 tons. We decided that, since our inability to grow the renewable electricity at the site, that it wasn't as attractive. We put that to the side and looking with Brookfield at other opportunities. Okay, understood. You mentioned backup power for EVs. Is that backup power on-site at EV charging stations? Yes. To ultimately be less reliant on the grid. Is that what you meant? Is there an opportunity there in the next couple of years? Yeah. It's actually a huge opportunity. You know, some of our customers are doing last mile delivery with EVs. You know, I think they're realizing it's easier to generate hydrogen remotely, truck it in to power the EVs than to actually pull power from the grid. You know, pulling power from the grid in some place like London and building new transmission lines is really problematic. It's much easier 50 km out to generate hydrogen and pull it in so that you have a renewable solution. Okay, got it. 1 more quick one, if I could, probably for Paul, is for modeling. Could you give us a recap of your capital outlays expected this year and through 2025? Just with all the projects going on, it'd be helpful to have a little guidance there. Sure. I think, you know, when you look at this year, it'll be, you know, close to, you know, north of $1 billion between CapEx and investments. You know, when you're doubling the size of the company like we are, you know, that continues to take work and capital investment as well. Fortunately, as we look out the next couple of years, I mean, I think, you know, the pace probably won't be terribly different. It'll probably be $1 billion a year on out. If, you know, some of the things that happen, you know, in terms of the green hydrogen bill and other things that can accelerate it, could even go faster. you know, we sit, you know, that's kind where we sit today. As we go forward, the 2 things that would really help or going to be helpful is, you know, we definitely we're seeing margin progression this year. We're going to see it next year. That's going to move us into positive operating cash flows, you know, even as early as next year. obviously starts to contribute to the coffers of being able to fund the growth. Then second to that is, as I mentioned earlier, that back leverage capability. We're sitting today. We really don't have any debt of any scale. As we move forward and grow this platform, we'll have tremendous ability to back lever it to tap into those capital solutions as well to help fund the growth. That gives you a little bit of sense of pace and scale in the next, you know, couple of years, as well as how I'm envisioning how we're going to fund it. Perfect. All right. Thanks, guys. Thanks, Greg. Thank you. Our next question is coming from Ameet Thakkar of BMO Capital. Please go ahead. Good morning, Ameet. Good morning, guys. Good morning, Andy. How are you today? Oh, very good. Thanks for taking my question. Sure. I just had a quick follow-up question. You mentioned that you're targeting some of the smaller sites with some of your kind of first pedestal customers like Amazon and Walmart as well. I was just wondering, can you give us a sense for like kind of like the level of penetration in their sites you have so far? Like, is there like a lot of sites left that you could kind of target in these smaller ones? If I think about Walmart, I'm probably calling the number 35%. I think you could see in 2-3 years we're at 80%. Great. Thank you. Thank you. Our next question is coming from Craig Irwin of Roth Capital. Please go ahead. Good morning, and thanks for taking my question. Well, happy New Year, Craig. Happy New Year to you, Andy. It's been a rocky ride these past couple of years. Yeah. Following you guys for a couple decades now. This is fun. My question is really a follow-up on one that you answered before. You talked a little bit about the two green hydrogen customers that have signed up for offtakes. Those are agreements in final legal review. I'm going to guess that the pricing is already agreed. Can you maybe talk qualitatively about the pricing, how this is likely to materialize versus your original expectations? You know, given that there is incredible scarcity of green hydrogen these days, you know, are these offtake agreements likely at a material premium to your original expectations? You know, what should we think about that as far as an indicator of pricing potential over the next year? Yeah, that's a good question, Craig. I think the pricing is in line with our expectations. You know, I would say that when you look at this business, you could see gross margins which are in line with our larger goals for 2025. You know, it's always a difficult question, Craig, 'cause I don't really wanna tell everybody what I'm charging, but I know it's a hard one. I know. I'll just say that, you know, pricing when I look at it should be healthy. Just as a follow-up on that question, right? There's been a lot of investors that are either currently in your stock or previously in your stock asking questions about margins on hydrogen. Yep. If you are achieving pricing on green hydrogen that is already consistent with your 2025 goals, the expectation of fairly significant margin improvement as these facilities come online is fair and well supported. Is it- Oh, Craig, I think that's a good way to put it. I think Paul in his remarks said, "You're going to see a step function." I mean it's in 2023. Once that green hydrogen comes online, you know, that margin is going to be in line with our GenDrive margins, if not higher. Excellent. My second question, Andy, has to do with a broader question from investors for most companies, but inflation and the scarcity of labor is impacting a lot of projects, right? It's impacting the cost to build, it's messing up timelines, and it's obviously, you know, a major headache for different companies. Your Georgia facility is obviously coming online right when you expected it in February. Can you talk about what you've done to mitigate these impacts, and if these factors or maybe availability of major components is likely to impact your build out schedule, both in green hydrogen and in the other initiatives over the course of this year? Yeah. I think that's a real good question, Craig. When I think about it, we don't try to hire people. We try to ask people to come join Plug Power. You know, I think that when you think about the acquisitions we've made, which we're actually talking about a good deal about how you make sure you have the workforce to execute. You know, we talked publicly about them being acquisitions, but they're about people who want to join Plug Power and share the vision. We've been able to grow this workforce since COVID started, from 700 to 2,500, 'cause people want to work here. It is a place where there's passion, there's commitment to getting things done. I mean, it's why I've been able to attract people from Tesla. I mean, I probably. You know, my manufacturing organization is filled with Tesla folks now. It's that mission that I think attracts people and have allowed us to work through, you know, what's been challenging to many companies. I don't want to downplay the supply chain issues. You know, as I mentioned on this call earlier, you know, every day I start out working supply chain. You know, I have Dave and, you know, supply chain people who worked at Tesla. They were really good at working through getting components during the crisis. We work it every day. We're on the phone every day. We're pushing it every day. I'm not going to tell you it's going to disappear tomorrow, but, you know, we're constantly thinking through what could be substituted, what could be changed. All I can say is that, we haven't used COVID inflation or supply chain as reasons not to hit our numbers. It's the reason we doubled our sales last year, and it's the reason we will meet our goals this year. That's good to hear. Well, keep up the good work. We're looking forward to another exciting year. I am too, Craig. We have one more too. Now, it's back to me. I really appreciate everyone joining our call today. As you know, it's going to be an exciting 2022. We are going to hit our numbers. We've laid out clear objectives and really look forward to talking to you on our earnings call on March first. Thank you. Ladies and gentlemen, thank you for your participation and interest in Plug Power. This concludes today's event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.