Fusion Fuel Green PLC(HTOO) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company recorded an operating loss of EUR 4.8 million in Q2 2022, with EUR 4 million attributed to operating expenses, including EUR 1.9 million for personnel costs and EUR 1.3 million for non-recurring professional administration costs [19][20] - The company ended the quarter with EUR 10.6 million in cash and cash equivalents and EUR 63 million in total assets, including EUR 32 million related to property, plant, and equipment [22][23] Business Line Data and Key Metrics Changes - The company has made significant progress in the production of its HEVO electrolyzer, with the Benavente facility being the first to produce electrolyzers at mass scale in Iberia [15] - The company has secured over EUR 40 million in grants, enhancing the competitiveness of its projects [37] Market Data and Key Metrics Changes - The company is focusing on the mobility and industrial decarbonization sectors, with plans to build a mobility backbone throughout Portugal and expand into other strategic markets [34][38] - The company is seeing substantial interest in its technology across the Iberian Peninsula, Italy, Greece, and North America, particularly following the Inflation Reduction Act [41] Company Strategy and Development Direction - The company aims to develop a decentralized and scalable approach to green hydrogen production, allowing customers to start small and grow with market demand [39] - The company is actively pursuing strategic partnerships to enhance its growth trajectory and leverage financial or operational scale [65] Management's Comments on Operating Environment and Future Outlook - Management highlighted the energy crisis in Europe and the Inflation Reduction Act in the U.S. as significant opportunities for the company [4] - The management expressed confidence in the company's unique HEVO-Solar solution and its potential to achieve a competitive advantage in the green hydrogen market [12] Other Important Information - The company filed two additional patents to maintain its technological edge in the market [16] - The company is in the process of securing additional grants and has a robust pipeline of projects under development [28] Q&A Session Summary Question: Can you talk about the approval process for the C-5 grant? - The C-5 grant involves multiple companies, and final approval depends on the completion of discussions with the government [57] Question: What milestones need to be met before invoicing the remaining EUR 3.5 million for Benavente? - The remaining amount is based on a proportion of spent, and reimbursement requests will be submitted as production lines are delivered [58] Question: How quickly can production ramp up if demand increases significantly? - It would take around a year to develop additional production lines, but new solutions may allow for faster scaling [60][61] Question: What does EPC turnkey mean in the context of technology sales? - EPC turnkey refers to technology sales that include support for development, permitting, and construction of the entire project [62] Question: How does the pricing work for HEVO-Solar units? - Pricing varies based on additional equipment required for specific projects, which can drive up overall costs [63] Question: What is the company's strategy regarding partnerships? - The company is in discussions with potential strategic partners to enhance growth and leverage financial resources [65] Question: How does the company plan to finance its projects? - The company is exploring various financing options, including debt financing against grants and receivables [66][70] Question: What is the current status of the Evora project? - The company is awaiting the physical connection to the grid to start producing hydrogen and selling electricity [85]