The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst
: The first question I have is related to the deal (inaudible) last week. It's kind of an RFI request for information phase with feedback due by the end
of March. So you have the Section 816 for electrolyzers, 813 for hubs. Look, I know you guys are aiming for coverage in most of the country [net]
projects. At least your first set of projects are ahead of any hubs that arrive. But I guess my first question is, is Plug doing anything in terms of
engagement? Or I guess, is it important to kind of steer the direction? And then secondarily, what are your expectations, if there are any, in terms
of benefits from some of these announced things from the bipartisan infrastructure laws?
Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst
: Okay. Second question, I guess, is somewhat related, but it's also related to a few other earlier questions. When we think about your sort of merchant
business for electrolyzers as well as captive for your green hydrogen production, I guess you have -- I know you've announced some projects in
the U.S., but I guess how important is it also, let's say, I don't know, say, gain share or sell outside of your captive business? Or would you expect
these opportunities to be addressed by competitors? And I guess, really, holistically, what is your win rate? You kind of talked earlier about you're
being somewhat selective on this. But just curious, obviously, you have Australia and Egypt and other things overseas. But curious how you view
other hydrogen projects in the U.S. that are, I'd say, not your own sort of captive production.
Question: Ameet Ishwar Thakkar - BMO Capital Markets Equity Research - Analyst
: Real quick from me. Real quick from me. Just it looked like there was a pretty big sequential increase in R&D and SG&A, kind of like 60%, 70% versus
the third quarter. And just kind of thinking about how we should think about that for kind of the upcoming year or kind of next quarter. Is there
some lumpiness associated with that at the end of the year? Or how do we think about that going forward?
Question: Ameet Ishwar Thakkar - BMO Capital Markets Equity Research - Analyst
: Great. That's super helpful. And then just going back to the hydrogen supply business and kind of thinking back from the start of the year, there
was obviously some of the force majeure issues that you guys have highlighted kind of throughout '21. But kind of going forward, like you guys
mentioned kind of prices as well as kind of impacting the margins on that business as we kind of exit '21. Like there are no additional force majeure
that you kind of encountered in the second half of '21, and you guys have mentioned that a couple of times, I think, just kind of getting out of that
force majeure cycle. Has that been like a problem you've incurred a lot? And what drives that besides kind of gas supply related to weather kind
of disrupted.
|