Fusion Fuel Green Plc Q4 FY2022 earnings call

Highlights:

• Fourth quarter: Announced €7M tech sales contracted, first project in U.S. and Italy, €36M grant from Portugal, €9M sale-and-leaseback of Benavente facility. First quarter: Signed Portugal’s first green hydrogen offtake contract with Dourogás, €10M grant for C-14 project, selected for €2.5M tech sales tender in Spain, €3.4M grant in Spain, and MOU with a leading company.
• Financials: Fourth quarter operating loss of €13M, increase from Q3 due to non-cash items. Cost of goods sold included Exolum impairments and inventory provision. 2022 total operating costs around €18M vs initial guidance of €14M. Cash resources strengthened with €7.5M from sale-leaseback, €3.8M from VAT, and equity raises.
• Technology: HEVO is patented miniaturized PEM electrolyzer, core of HEVO-Solar (integrated solar hydrogen generator) and HEVO-Chain (containerized PEM solution, power agnostic).
• Strategy: Focus on small-to-midscale projects (<10MW), transitioning to solutions provider. Key assets: HEVO technology, land, grants, people. Development pipeline over 200MW tech sales by 2025, partnerships with Ballard, Duferco, etc.

No detailed segment performance in absolute terms and revenue contribution % provided in the transcript.

2023: Seeks to achieve €25M in revenues (€13M already contracted). ### 2024: Aim €80M in revenues. ### 2025: Over €140M in revenues. Aim to be cash flow self-sufficient and positive net income in 2024. Core milestones for 2023: Expand production, finalize HEVO-Chain development, secure all 2023 revenue, convert 2024 pipeline, develop projects, ensure safety.

Q: Dourogás off-take agreement duration, volume, transport?

A: Market-based price contract, volume nominated from project, connected via pipeline.

Q: C5 funding distribution?

A: Distributed upon achieving milestones, related to project expenses.

Q: Bakersfield project update?

A: Concluding concept study with Black & Veatch next month, then pre-feasibility.

Q: Revenue recognition for Exolum?

A: Starts when project acceptance begins, March commissioning.

Q: Impairment charges?

A: No additional expected in Q1 2023.

Q: EU policy vs IRA?

A: IRA boosts industry, EU seeing more support, Spain increasing grants, Portugal hydrogen auction.

Q: Portugal tender participation?

A: Intends to participate, with partners.

Q: HEVO-Chain customer interest?

A: Significant interest, modular/scalable.

Q: Development economics per MW?

A: Projects unique, plan to highlight FID projects in future calls, balance seeding with third-party capital.

Q: Morocco, Middle East, etc. partnerships?

A: Focus on near-term actionable opportunities in key markets, expect news in coming months.

Q: Levelized cost chart?

A: Reflects HEVO-Solar, dependent on deployment location.

Q: Liquidity and financing?

A: Discussing capital partners, project side to use partnerships, corporate side exploring options.