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| And additionally, launching the 200-kilowatt powertrain in the right-hand drive 64 caliber truck in Australia this past month, making all that progress while continuing to drive cash burn down, we think shows that we've been effective in maintaining and driving the commercialization of Hyzon, our technology, while also continuing to find opportunities to produce cash flow |
| That's really impressive |
| We anticipate substantial commercial progress and minimal capital spending requirements to achieve center production of our 200-kilowatt fuel cell system in the second half of 2024, positioning us favorably as we push to capture critical capital and to expand our large fleet customer commercial agreements and activations, strengthening the balance sheet, while maintaining our early mover advantage in a growing movement to the carbonized trucking |
| And we're very thankful to have tremendous customers like Performance Food Group that we've been working with now for over two years since their trial |
| On the product side, one of my biggest motivations to join Hyzon was the significant fuel cell technology advantage and the corresponding intellectual property we hold |
| And all those learnings on the fuel cell is performance, the powertrain integration have a real benefit to us in all these cases that will come as well |
| It promises to pave the way for Hyzon's long-term growth |
| As you can tell, I and we are incredibly excited for 2024 |
| And then also benchmarking us against other fuel cell technology, we're happy whenever fleets are trying other fuel cell structure because we fundamentally believe our 200-kilowatt single stack fuel cell system has a wage advantage that's significant, a volume advantage, a cost advantage, which allows our trucks to be positive cash contribution margin today to large fleets, which is a unique statement in this business versus others who are significantly cash negative |
| We are very excited by the tailwinds that have continued to grow globally, in particular here in the U.S |
| So we have tremendous opportunity we see on the truck side |
| And I believe Hyzon is the first to deploy a heavy-duty vehicle with a single stack 200-kilowatt per cell system, which brings me to another reason, Hyzon technology is at an advantage |
| But we've already shown so tremendous gains in the performance and the optimization of the powertrain and the performance of the truck, even going from the 110-kilowatt technology in the truck, the 200-kilowatt technology in the truck we're seeing an expectation of 20% better fuel efficiency on the test track with that 200-kilowatt powertrain in the truck in the same use case, which by the way, that's 20% better than diesel |
| So -- we're excited |
| And you see them leading in taking our trucks into operation because they want to get going, right? And they're very proud of that |
| And that is exciting about that is we are confident when we run that system to SOP here in Bolingbrook that we're still on track for later this year, that system will not just be a high-performance fuel cell system that we think is ahead of others that are in trucks today, but it also is one that we already have started to go through cost performance and quality improvement in the also plants and the MEA the catalyst design as we're optimizing and improving it based on the findings through our very rigorous A-samples through C-sample preproduction and SOP process |
| That performance is significantly better than even the best battery electric refuse truck alternatives that our customers are seeing, in some cases, doubling the daily work rate of battery electric -- demonstrating our clear view that fuel cell trucks are the only viable decarbonization option in refuse to fully perform the work a combustion engine can deliver and the fleet's need |
| And so what we see that the sub program is doing, as one example, the Houston-based High Velocity Hub is one of the 7, right? And so that hub is a tremendous opportunity, we believe, for fleets to put in projects with us and fueling providers to be a part of that hub and to drive trucks once that hub is ideally funded and deployed into that Texas triangle with a significant freight demand and opportunity |
| I am proud of the execution that we demonstrated throughout 2023 in achieving the important operational milestones set out earlier in the year |
| We are keenly focused on maintaining financial flexibility while ensuring that we are well positioned to achieve our near-term growth objectives |
| Christian's combination of deep experience developing and critically commercializing fuel cell technology will both accelerate our leading U.S.-made 200-kilowatt fuel cell system and further bolster our ability to extend our leadership in fuel cell technology R&D and IP generation |
| With Christian joining an already strong management team and Board, we are confident in the leadership and governance foundation we have in place to drive Hyzon forward into commercialization |
| The addition of the fuel cell refuse vehicle as an international platform with a significant performance and economic advantage versus battery electric alternatives is yet another example of heavy-duty industry requiring hydrogen fuel cell technology to do the work it needs to do |
| With the operational and commercial milestones achieved in 2023, we start 2024 with strong momentum and a positive outlook |
| Hyzon has developed a single-stack 200-kilowatt fuel cell system, which brings significant advantages in weight, size fuel efficiency, cost to manufacture and product cost |
| And government, commercial and regulatory support for hydrogen continues to grow even stronger |
| We're really proud of our performance in managing cash burn expenses here at Hyzon |
| We are confident in the capabilities of our technology and our differentiated asset-light business model |
| All of this is supported by strong tailwinds worldwide for hydrogen and zero-emission vehicles |
| Starting production with these high-powered vehicles positions us well to achieve our commercial targets in 2024, continuing the early mover advantages we established in 2023 and with our first deployment to large fleets in each region |
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| Our full year 2023 net cash burn of $143 million came in below our guidance of $148 million to $156 million driven by the timing of our $8.5 million first tranche SEC payment, and we would have fallen in the range had that payment occurred in Q4 |
| But just contextualize California, clean truck mandates are difficult to meet |
| The primary reason we fell below the guidance range is because we began recognizing asset impairment charges as a separate line item in Q3 2023 |
| SG&A came to $121.2 million in 2023 versus $114.1 million in 2022 and below our guidance range of $130 million to $134 million |
| R&D expenses came to $43.7 million in 2023 versus $39.1 million in 2022 slightly below our guidance range of $45 million to $49 million |
| This represents our lowest quarterly net cash burn over the last nine quarters and fourth consecutive quarter of declining brand |
| When you add the battery truck challenges, which is the biggest driver, if you ask us, of why there's $300 million sitting in the California, the Care program today |
| When we launched that trial, the first day, there was a significant rain storm than before |
| alone and many publicly funded fleets in California, facing expected near-term zero-emission purchase mandates under California's Advanced Clean Fleet Rule |
| We're seeing, the use case for hydrogen trucks expand because of both the challenges of battery trucks to do the work that diesel does today |
| These fleets with internal and government mandates to decarbonize are experiencing the limitations of heavy-duty battery electric trucks in their operations and are turning to fuel cell trucks for long routes with heavy payloads and minimal downtime for refueling |
| Is this changing the tempo of activity in some areas of the country? I know in the short term, it does impact deliveries as people figure out where they get the best funding opportunity |
| The gap in performance is significant, leading us to believe the future of zero mission refuse collection is clear |
| I know that was two questions |
| I guess I had two questions |
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