Plug Power Inc at Jefferies Renewable & Clean Energy Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Dushyant Ailani - Jefferies - Analyst : Thank you so much. So I think some of the big questions that we have been getting and just wanted to kind of talk on that. I know that you guys recently had Plug Symposium. Maybe since then, could you share a little bit about just the thoughts of the conversations you're having around obviously the DOE loan and the new administration. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 4:00PM, PLUG.OQ - Plug Power Inc at Jefferies Renewable & Clean Energy Conference Trump administration is -- they have been kind of historically pushed back on the LPO program. All your thoughts there and how you're tackling that? Have you done any scenario analysis on what's going to happen if you get the DOE loan? What happens if you don't? Maybe just thought there.

Question: Dushyant Ailani - Jefferies - Analyst : And then maybe just kind of digging in a little bit on the DOE funding specifically. And then obviously, we're going to talk about the 45, but any kind of thoughts on just the DOE funding where you guys are in the process. I know that there was some permitting needed for the Texas plant for the NEPA vomiting. Where are we on that? Just any color there on.

Question: Dushyant Ailani - Jefferies - Analyst : So in terms of the conversations with these strategic partners, is it more -- are they relying more on the DOE loan coming through or is that kind of a separate conversation I think? Are they comfortable with -- because I guess to fund the 20%, you'll have to get the 80% DOE. So how are you going to think about maybe in a scenario where -- how would Plug look like because you have two operational plans right now and I think 15, 10 -- 15, I believe, capacity, I think --

Question: Dushyant Ailani - Jefferies - Analyst : Yeah. 40 tons for the next year. I think a total consumption or sales to your customers roughly 50, 60 tons.

Question: Dushyant Ailani - Jefferies - Analyst : So I mean, in terms of I guess -- the question being is that if we are based case today and if the DOE loan doesn't come through, then how would that kind of impact, let's say, the rest of the Plug business.

Question: Dushyant Ailani - Jefferies - Analyst : Got it. That's helpful. Maybe like I think in the Plug Symposium, can talk about the energy business and then the applications business. So maybe if we can dive a little bit into the energy business. We start off with the green hydrogen. So maybe let's stick with that. But maybe if you can give us an update on just the LA or the Louisiana plant commissioning. How that's coming along if you look at the expectations still 1Q. And historically, there have been some delays with Georgia. What have you learned from there that you are applying to Louisiana so that you can make sure that it ramps up on time.

Question: Dushyant Ailani - Jefferies - Analyst : Got it. And then within, I guess, within that segment, how do you think about just margin progression turning to the positive margins going forward. I know that previously you've talked about, I think you guys are already taking advantage or already taking in some of the [45] credits and maybe if you can share the progression there in terms of margin for fuel, and then you can --

Question: Dushyant Ailani - Jefferies - Analyst : And then, I guess, maybe on specific to, I guess Georgia, that's kind of where you're able to recognize that 45 maybe. Could we kind of dive into that a little bit as well. I know we talked about the DOE and you touched on the IRA a little bit. So what are you hearing on your end based on the conversations you're having in terms of, like guidelines being finalized. I think, what we have heard is has been mixed messages. We heard that, hydrogen probably credits will be along with EV credits offshore. We will probably be the first to go and someone saying that no 45 will actually be less stringent. So maybe you just want to get your views there.

Question: Dushyant Ailani - Jefferies - Analyst : Awesome. I have a bunch of questions, but I do want to open it up to the floor as well to see if anybody has questions before jumping in. All right, cool. Then maybe you're talking about specifically again that the 30% CAGR that you've talked about for the energy business. Does that include Texas, New York as well when you initially gave that guidance? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 4:00PM, PLUG.OQ - Plug Power Inc at Jefferies Renewable & Clean Energy Conference

Question: Dushyant Ailani - Jefferies - Analyst : How long is that PPA for (inaudible)

Question: Dushyant Ailani - Jefferies - Analyst : No worries at all.

Question: Dushyant Ailani - Jefferies - Analyst : And then could you maybe talk a little bit about some of the assumptions that were baked in because given you guys have provided some margin profile guidance as well in the Symposium. So specifically like in terms of electrolyzer sales and some of the other possible businesses that you guys have talked about. How do you think about that margin profile for those businesses?

Question: Dushyant Ailani - Jefferies - Analyst : So how much of the margin growth is kind of driven by, say, volume growth versus the cost towns that you've talked about?

Question: Dushyant Ailani - Jefferies - Analyst : And then maybe kind of jumping to electrolyzers a little bit. I think you've talked about your like BEDP contracts in the Symposium. Could you talk a little bit about how do we think about that conversion or how the conversations are coming along there and maybe timelines for that if possible.

Question: Dushyant Ailani - Jefferies - Analyst : And how is that conversation -- so now are they looking -- so what's the process for them to go FID in that? What are they looking for? Is it financing? What's there for them to get them off that hurdle?

Question: Dushyant Ailani - Jefferies - Analyst : So that's fair. And then maybe can you talk a little bit about just the applications business a little bit. I think you've also talked about raising pricing there as well for your customers on the fuel side of the business as well as on the application side. So how do you see that start to flow through the business and then into the margins? I don't think that's actually realizing yet.

Question: Dushyant Ailani - Jefferies - Analyst : That's helpful. And then I guess you also talked about this at Symposium, some opportunities, online middle market expansion for applications. Can you elaborate some more over there?

Question: Dushyant Ailani - Jefferies - Analyst : But it's not what percentage, I guess, if you can kind of talk about that, like how much of your sales are in that middle market portion versus in the --

Question: Dushyant Ailani - Jefferies - Analyst : That's helpful. I know we're going to close in on time. Just wanted to open up for questions if anybody has any. Sure. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 4:00PM, PLUG.OQ - Plug Power Inc at Jefferies Renewable & Clean Energy Conference Unidentified Participant (inaudible)

Question: Dushyant Ailani - Jefferies - Analyst : Do you have any other questions? Brilliant. Okay. So I think we're close on time. So I just want to thank you, Jose, for coming in today and just answering your questions.