During the earnings call, Plug Power’s CEO Andy Marsh discussed the following points regarding the company’s H2Ref project and its potential impact:
1. The H2Ref project aims to produce green hydrogen using renewable energy sources, such as wind and solar power, to address climate change impacts.
2. Plug Power’s role in the project is to develop and manufacture the necessary equipment, such as electrolyzers and compressors, to convert the renewable energy into hydrogen gas.
3. The project is a consortium comprising Plug Power, South Korea’s Hanwha Corporation, and Gyeonggi-do province, with funding support from the Korean government.
4. Plug Power has received a grant from the government’s Ministry of Trade, Industry, and Energy to support the project, which represents a major milestone for the company in the Asian market.
5. The project will require significant upfront capital expenditure, estimated at $1 billion to $1.5 billion, which will be shared by all parties.
6. The project’s timeline is expected to span over six years, with the potential for expansion in the future.
7. Marsh expressed optimism about the long-term economic benefits of the project, as hydrogen is expected to become a commodity in the future.
8. Marsh noted that Plug Power’s involvement in the project would contribute to the company’s international growth strategy, and that the company’s experience in manufacturing, customer relations, and vision for the industry provides a differential advantage.
9. Marsh acknowledged that there have been some delays in the commissioning of certain hydrogen plants, but emphasized that both Plug Power and its customers must be ready for the site acceptance tests.
Overall, Marsh expressed a positive outlook on the potential impact of the H2Ref project, highlighting its alignment with Plug Power’s international growth strategy and its potential contribution to addressing climate change impacts through the production of green hydrogen using renewable energy sources.
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