Fusion Fuel Green PLC(US:HTOO)2023-06-05 18:55Financial Data and Key Metrics Changes - The company recognized its first third-party revenues during Q1 2023, resulting from a technology sale for the supply and installation of 62 HEVO-Solar units [17] - The net loss for the quarter was €2.6 million, with a reduction in the cost base compared to Q4 2022, despite a €1.4 million charge related to a production line that was not installed as planned [19][18] - The deferred income balance increased by €3.1 million due to further installments from a grant award and amendments from customers [23] Business Line Data and Key Metrics Changes - The company entered into two hydrogen purchase agreements and issued invoices to three external clients, marking significant progress in its commercial activities [16] - The HEVO technology continues to evolve, with the introduction of the Gen 4 HEVO, which is eight times more powerful than previous versions, enhancing production capabilities [28][42] Market Data and Key Metrics Changes - The U.S. market remains strategically important, with ongoing development of projects and partnerships aimed at expanding operations in North America [26] - The company is actively pursuing grant awards and supporting partners in their submissions, indicating a strong focus on securing funding for projects in Spain and Portugal [31] Company Strategy and Development Direction - The company aims to strengthen its balance sheet and become cash flow self-sufficient by the second half of 2024, exploring various capital raising options [38] - The HEVO-Chain offering is positioned to enter the Northern European market, which is moving quickly in deploying electrolyzers, indicating a strategic shift to capitalize on market opportunities [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the urgency and appetite for hydrogen projects in Europe, noting that governments are beginning to take action on hydrogen initiatives [46] - The leadership emphasized the importance of maintaining a strong corporate culture and governance as the company grows, highlighting the need for agility and quick execution [40] Other Important Information - The company launched its first ESG report, outlining targets and ambitions in the sustainability space [16] - The organizational changes, including the appointment of Frederico Figueira de Chaves as CEO, are aimed at positioning the company for growth in the renewable hydrogen ecosystem [6][7] Q&A Session Summary Question: Update on the Bakersfield project and the JV with Electus - The company continues to work with Electus Energy on the Bakersfield project, with a feasibility study underway, but details cannot be disclosed at this time [50] Question: Tracking against full year 2023 guidance - The company is currently tracking positively towards its 2023 projections, especially regarding revenue and costs [52] Question: Capital planning and strategy for CapEx requirements - The company is exploring various capital areas to strengthen its balance sheet and plans to use inflows from contracts to support CapEx [54] Question: Expectations for grant payments and potential liquidity challenges - Grant payments can be unpredictable, and the company is looking to partner with commercial banks to mitigate timing risks [58] Question: Preliminary 2024 outlook - The company maintains the same guidance for 2024, with project timing potentially impacting targets [59] Question: Leadership changes and the Americas strategy - The Americas remain a strategic priority, and the company is considering multiple solutions for this market [61] Question: Rate of dilution through sales of securities - The company expects the rate of dilution to be steady or reduced, focusing on retaining key employees [62] Question: Challenges in the green hydrogen economy - The transition to green hydrogen is taking time due to historical usage patterns and the need for government support to justify the green premium [68] Question: Benefits and differences of HEVO-Chain solutions - The HEVO-Chain offers modular solutions that can be tailored to client needs, with both containerized and non-containerized options available [70] Question: Technology sales process and payment structure - The sales process typically involves upfront payments to ease working capital, with phased payments based on production milestones [72] Question: Efficiency of HEVO 2023 - The efficiency at the stack level remains competitive, with around 52 kilowatt hours required to produce a kilogram of hydrogen [75]