H-Power (LSE:HPOW) — Investor Presentation

0:00 Good afternoon, ladies and gentlemen, and welcome to the AFC Energy PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Given the significant attendance on today's call, questions are encouraged, but the company may not be in a position to answer every question it receives during the meeting itself. To submit your questions, just simply type in your question at any time using the Q and A tab situated on the right hand corner of your screen, type in your question and press send. Before we begin, we would like to submit the following poll, and I'm sure the company would be most grateful for your participation. And I'd like to hand over to Adam

0:32 Bond, CEO. Good afternoon. Good afternoon, Mark, and good afternoon, everyone on the on the call. We've we've already received a number of very helpful questions, which hopefully we can address throughout this presentation today. One of which is around communications of the company, and and hopefully, is the start of a a wider communication strategy with with investors, with particularly retail investors, try and give you greater access to some of the thinking around strategy, around the company's progress, and and hopefully, we we you you find this useful today. Again, pleasure to meet you all. This is this is our first one of these investor meet company presentations. And the purpose of this is really to go through the annual results for the year ended 10/31/2022.

1:20 The the question that we get asked a lot is is is what is AFC? What is its purpose? And and one of the things that you'll or the themes you'll find relevant in this presentation is that construction industry, temporary power is a is is a key theme, is a key focus for us at this point in time. And and you can see from this graphic, which is sort of an introductory positioning of the story, is if you look at The UK construction market as a standalone industry, The UK construction market today consumes approximately 18,300,000 barrels of diesel per annum. That's approximately 5.5% of the the entire North Sea UK oil production.

2:05 Now that converts into approximately 8,100,000,000 kilograms of c o two produced. We all hear regularly on the on the news and in in in the media that net zero is a core part of our political will, of our social will. And so if we do believe in achieving net zero is and and that we're on that journey, then that entire 18,300,000 barrels of diesel per year needs to be displaced with something else. And that's where the AFC energy fuel cell or hydrogen generator platform starts to play a key role. You can see here that AFC is is is is focused on utilizing hydrogen. I'm mindful there's a lot of people in this call who may not be familiar with the ASC story as as as others.

2:52 But utilizing hydrogen as a key feedstock, there is no c o two in that, and and our our net emissions from that is is basically water and power. So that is the ASC purpose. That is the markets in which we're aiming to focus on. And and if you look at that in a holistic way, globally, The UK sorry. Globally, the the diesel generator market today is valued between 20 and 25,000,000,000 US dollars a year. So it's a fairly big market in which we can look to address. The year that we've just completed, we've defined as an an year of unprecedented progress. Many of you will have attended various AGMs in the past, and you will have heard us speak of concepts around the power tower, concepts around the new liquid cooled ABB technology as we're calling it, and and concepts around the ammonia cracker and fuel conversion technology.

3:47 Well, today, this year, we can say that within the in the space of twelve months or maybe eighteen months in some cases, we've managed to successfully deliver not only technologies in the lab, but we've actually put those technologies into the field, not just in the field, but in the hands of customers. And not just in the hands of customers, but customers who are paying to ramp those systems. So we're now starting a journey of revenue generation from our technology, whereby that technology was actually developed over the course of about twelve to eighteen months. Those are the sort types of that's the type of progress that we've been able to make as a result of successful fundraisers made in prior years. This is the type of progress that we're starting to see with the industry and the way it's evolving in in adopting some of the technologies that we're taking to market today.

4:39 Of course, with systems in the market and the successful deployments we've seen with companies like Axiona, with companies like here and Celtbrae and Mace and others, we are now starting to see a growing pipeline of projects in in that market. And we'll be talking a little bit more around the the pipeline of of of of opportunities that exist, particularly with a focus on construction today.

5:03 Secondly, we've managed to achieve a successful validation of a new technology that did not exist twelve months ago, which we're calling our s plus series or our liquid cooled fuel cell technology. We delivered a 100 kilowatts worth of stats into with with ABB in in in, you know, witnessing the demonstration, highlighting the technologies, not only operability, but also that it's delivered against all of the key milestones set out in our contract with ABB. And that was delivered not only to the full specification of the contract, but also delivered on time in October last year and tested over the validation period of that contract. Such was the success of that that technology that ABB decided to invest a further £2,000,000 into AFC's equity post year end.

5:55 We've during the year, we've successfully delivered on our season two Extreme E. For those who followed this the AFC story for a while, you'll be familiar with the Extreme E season series. We successfully delivered season one, followed up by season two. We've decided not to proceed with season three, which is currently on ongoing. But during the course of season one and season two, we were successful in delivering clean energy to charge all of the Extreme E race vehicles at every race that we we attended over the course of those two years. Halfway through the year, one question we do get asked quite a lot and a and a question that came through in some of the the presubmitted questions from from you all is that halfway through the year, we noticed there was a change in in the sponsorship, if you like, of the of the Extreme e equipment.

6:44 And quite simply, that was as a result of a commercial arrangement reach between Extremee and Anoa, which is a subsidiary of of Neom in Saudi Arabia, whereby ASC forwent some of its advertising space in return for an increase in cash received. So a commercial transaction that was undertaken during the course of last year. So during the year, I guess, one of the things that may have become new to a lot of you was the introduction of our new ammonia cracking platform. And we're gonna spend a bit more time later in this presentation talking about ammonia and the and the technology that we've been developing in in that sector as well. So on that basis, I will hand over to our new CFO, Peter Dixon Clark, who who will take us through some of the numbers. Great. Thanks, Adam.

7:36 Hi, everybody. Great to meet you and mindful of the comments we've had about more, you know, external communication. And and and as Adam says, this is this is a very good step in that direction. So, look, very briefly, I started just before Christmas. Big believer in the renewable space. I've been working renewables for a number of years. And when I got called about this job, it was a very easy decision. Big believer in hydrogen. I do I have spent time in oil and gas, and I can see all the read acrosses, I can see the opportunities for scale, and I can see, you know, the macro opportunities. So not not a difficult decision about joining AFC. I'm delighted to be here and talking to you.

8:21 So what I'll do is I'll take you through the numbers. This is a results presentation,

8:25 but I will try to place them in context and particularly talk about, you know, what has happened, but most importantly, what it means for the future because it's the future that we're all most interested in. So very exciting space, lots and lots of opportunities. But obviously, for a company like AFC, we need to focus. We need to deliver on those opportunities. And delivering on opportunities is how you drive the share price and, you know, how we intend to see it see it marching back up to to where we think it should be. So we've identified three value streams, and those value streams align with our products. And I'll just take you through them very briefly. At the top of this picture, we've got the green value stream, which is our air cooled fuel cell. So that's the lower density fuel cell. It's already generating revenue. As Adam says, it's generating revenue rent rent revenue rental revenue, I beg your pardon. And of course, the next big milestone is when it starts generating sales revenue. And and we'll come to that when Adam talks about business model.

9:30 But we're already making good good progress there. It's not a binary process. You don't start generating revenue and stop investing. You know, the investment continues for some time. And then in chronological terms, fast on the heels of the air cooled, we've got the liquid cooled. It's liquid cooled because it's more energy dense, which means there's an exothermic reaction. There's more heat that needs to be dispersed. And the liquid cooled is essentially the the ABB product that we're developing in conjunction with ABB. So ABB has provided the lion's share of the development funding, but it's really important to stress ABB do not get to own the intellectual property that's generated, that stays with us, nor do they have an exclusive over future distribution.

10:18 Clearly, they have fabulous distribution channels themselves and there are opportunities there. But equally, if we if and when we develop our own channels, you know, we are we are able to do so. And our third value stream is is fuel conversion. And fuel conversion is where, you know, we're really into the sort of macro picture. If you look at a map of the world and Adam will come to it, we're going to end up with countries or regions that create, you know, that that that energy exporters and other regions will be energy importers. And so it's all about how do you move energy from one place to the next. And the logical answer emerging the front the emergent front runner is ammonia. So fuel conversion, we we know how to convert other fuels, but ammonia is, as I say, is the front runner.

11:07 And so in terms of revenue, you know, we've already generating revenue with the air cooled. The the liquid cooled will follow next year when we complete our delivery to ABB, and then we would expect the fuel conversion to follow after that. So you get a nice steady buildup of the revenue. And then obviously, as more revenue comes on stream, the existing products really start to gain momentum. And that's where you see, you know, the the off use term of the hockey stick. So that's what we're expecting to happen over the next three three years, and then, you know, it it really takes off from there. So So that's the context. So the numbers, last year, 600,000 of revenue, predominantly Extreme e. So another part of 2003 will be about replacing the Extreme e revenue with rental revenue on the power towers.

12:05 That deferred revenue there of the 1,600,000 and deferred revenue just for anyone who's sort of not comfortable with it, that's where we've already received the cash, but we haven't recognized the revenue. So we've received $22,000,000 from ABB. We've set, and I'll come to it, we've set 600,000 warrants against that. So of that 1.6, 1.4 relates to ABB and I'll cover ABB in detail in a minute. 40,000,000 of cash is a great place to be for a company of this size. So we're really pleased with that. 16,000,000 of loss at the moment as we transition from research to development to commercial, we're expensing pretty much everything. So that that expense is a proxy for our cash usage, and I'll I'll talk about that as well. And then finally, because we are doing a lot of research and development, which is the basis for how we've been able to move so quickly in the last twelve months, we've generated an r and d tax credit, which is essentially a cash refund from the government of £3,000,000.

13:09 So those are the highlights. And I think that segues takes us neatly into ABB. Now the important thing with ABB, we signed an agreement with them back in November 2011. '21. Thank you. '21. Yes. And and then we've revised it by mutual consent in March of this year, and and we announced that. So the most important thing to underline is the value has stayed the same. The overall sort of size of the price is still £4,000,000. In fact, the the size of the price, if you like, has increased because as well as the £4,000,000 of sort of headline cash into the business, we've we've we've negotiated a follow on follow on options.

13:58 And so the original contract was for a sale of a single unit. The exist the the new contract is also for the sale of an existing unit with the option to purchase a further nine and an incentive to do so. And the way we've incentivized ABB to sort of follow their money, if you like, is they earn that deferred revenue that I was talking about earlier. They just they earn that over the period of the the sales. If they decide not to buy, the cash is nonrefundable. So that, you know, that accrues to the value of the company either way. But that's the structure we've set up and ABB are, as I say, incentivized to to keep buying and keep working with us. So the maximum possible revenue has obviously increased.

14:44 We've gone from the sale of, you know, one unit to 10 and, you know, hopefully many more over time.

14:50 The 1.4 I talked about, that's a bit of an accounting sort of nicety, but essentially, on the same day we signed the sale and development agreement, we granted some warrants, and we've valued those warrants at 600,000. So 2,000,000 less 600,000 is 1.4. There's nothing more to it than that. We've issued equity of 2,000,000. And by issuing the equity of 2,000,000, we accelerated the receipt of the 4,000,000. So whereas under the old contract, we've received 2,000,000, we'd still be waiting for the next two and until everything was delivered. We now already have that 4,000,000 in our bank account. So so that's that's essentially what's happened. And and and the the points with the the options is, you know, a company that's growing like ours never underestimate the value of a pipeline. It it gives us some real sway with our supply chain. If we look for if we look to outsource any of our manufacturing, it gives us some real credibility there.

15:54 So, you know, there's real accrued value in in in in those options. Thank you. And this is the final slide. So this is really how do the numbers back up the pace of movement Adam's been talking about. Well, in 2021, we spent well, 2021, we spent £8,000,000 of which only three, so about a third related to r and d qualifying expense. Come 2022, a, we tripled the amount we'd spent on r and d from 3 to 9,000,000, and that that was over half of our expenditure. So we've become far more focused on our on our engineering teams and our chemists, our our research and development, you know, and we're turning that into value.

16:42 The beauty with being so focused on r and d is, of course, we get the tax credit. So of that 9,000,000 of investment, which clearly we're looking to, you know, get multiples of value from, we will get a

16:54 3,000,000 refund. So it will cost us 6,000,000, but we're looking to generate a great deal more value than that. So those are the are the numbers. Those are certainly the highlights. If I could hand back to Adam and go from there. Thank you, Peter. So we're gonna break this down into a couple of segments. One is on the fuel cell power generators, and the second is on the on on the actual fuel conversion technology such as the cracker. Many of you who have followed AFC will be familiar with this slide. It's a it's it's it covers off on a number of our addressable markets where we're focusing the generator technology. I've I've said before that the the real big markets in terms of the scale and and size of opportunity really probably reside in in sectors like maritime shipping, data centers, and the like. However, the the the barriers to entry are higher, the ability to have a a shipbuilder integrate your fuel cell and and or cracker onto a ship. It takes longer. You have to buy a lot more operating evidence, if you like, to support the operation of the fuel cell over longer periods because those investments in ships are forty year lives.

18:03 Whereas the barriers to entry into sectors like construction and temporary power and and EV charging are much lower for for for shorter term deployment potential. So today, we're focusing on really the top line and and and particularly with a focus on construction. With that focus, I mentioned at the beginning of this presentation some of the usage of of of of diesel in The UK construction industry, and you can see some of the statistics there. I think one thing that we're starting to see a lot more is the industry being the construction industry realizing recognizing that the need to convert or transition from diesel is probably sooner than they first thought. We are now starting to see government procurements, which, you know, might be a HS two project. It might be something quite high profile. It could be just as a simple government building.

18:59 But the procurement documentation is now requiring up to say 30% of the weighting of that procurement towards the green credentials of the offering of the contractor. I was speaking to a CEO of one of the large plant hire businesses in The UK a couple of weeks back, and he was saying that of of the of the tenders that they're now supporting, there is an increasing demand for technologies like our fuel cell to support the the bid the bid bid teams from the construction groups. I think equally, there is an acknowledgment that this is a premium priced product. We don't have to meet the cost of diesel to be viable in the market today. It is an it is a premium priced product. I think if you look at the constructors in particular, a number of those constructors, particularly the listed ones, are now being held to account by their shareholder base who are asking for transparency over their environmental, social, and governance criteria and and and and and that part of their business, which is which is the ESG emissions.

20:06 So I guess if you put that together and and ask what is the timeline for that transition, you can see at the bottom there the the construction leadership council, which I don't know if you're familiar with them, but this is a a group of organizations representing the construction industry. I believe they're led by the CEO of Mason Atkins. They are basically consulting on the zero diesel site road map. And circled in red there, you can see one of the consultation points is a target of 500 companies in The UK signing up by the end of this year to displace diesel generators on sites by 2025. But that is a very, very aggressive target. Whether that target is in fact met or or is deferred a year or two, the message is that the the the the the industry is no longer setting targets at 2050, 2040, but rather these targets are far more short term. In this case, twenty twenty five, twenty twenty six, 2027.

21:04 So that hockey stick, if you like, of of growth that we expect to see will be driven in large part by the industry's own desire to be transitioning from diesel in the very near term.

21:18 One question we get asked a lot is is just an understanding of the business model of ASC in the light of that construction industry. And there are three key players in this space. You've got the the generator manufacturers. You could you could add into that Caterpillar, Cummins, you know, companies of that that nature. You've got the plan hire businesses, of which I've listed just three, but there are many who are actively buying generators from the manufacturer, and then on letting or renting those to the construction companies of which I've listed several there. Of that list, we haven't let any or rented any systems to Balfour Beatty, all the others we we have. The business model that we expect to see is that AFC will start selling our systems to plant high businesses.

22:05 But in order for the plant high businesses to start wanting to buy our systems, they need to understand the demand from the construction industry. And so what we've been doing over the last well, since August of last year and continuing to do today is we're starting to see deployments into the into the construction market. The construction market is getting comfortable with the technology. They're getting comfortable with the fueling strategy around hydrogen. They're getting comfortable of the operability of our system. One of the the challenges that we've had originally was, you know, we're giving the the the the the the industry a a piece of technology that doesn't look like a generator. And therefore, that in itself can be a reason sort of site operators don't wanna proceed with the with the with the change in technology. So we've been working with the industry. We're now starting to see follow on orders. We've seen Kelpre extend their original deployment by six months. We've seen a follow on order from Axiona, and and and we're seeing quite a few further progressions in the in the industry.

23:09 We have on very good on on very good record that those construction company CEOs and sustainability managers are now in fact engaging with the plant high businesses. How do we know that? Because the plant high businesses are now starting to engage with AFC. And so the investment in time, whilst, you know, revenues on on short term rentals of 10 kilowatt power towers might be nominal in the scheme of things, It's about driving a pipeline of opportunities that will result eventually in sales of fuel cells to plant high businesses of varying sizes, and that therefore will then generate the accelerated growth in revenue over the over the next year or two. So this is the model that we've been adopting and so far has been been quite successful in driving the outcomes that we're seeking to achieve.

23:57 We've got a number of power towers in the market. You can see some of the the ones there that we've we've already announced. Axiona, Kelpre, Mace, Dragodoss, Kia. And more recently, we have a couple of others with VINCI and and and as of this week, we have our first multiple system deployment with Colas Rail. And you can see an image of the two fuel cell power towers side by side running the, you know, part of the the Colas Rail construction site in in Gloucester this week and and for the next several several weeks. I will just defer back to Vinci for one one minute. And and I I do also say this is not an extensive complete list of all of the deployments. There have been a number of other deployments that we've delivered into, some of which prefer not to be quoted.

24:47 And and and, you know, we don't expect to be making announcements on every deployment that we make. However, VINCI is an important one on the basis that VINCI is by revenue, I believe, the second largest construction group in the world. And a couple of weeks ago, we had the opportunity by invitation to present to the senior executive team of a 150 people in in Silverstone. And you can see a photograph of the of the fuel cell that was on-site at Silverstone on the on the day. But the interesting factor was that at that event, we managed to speak to a 150 of the senior executives of of VINCI UK. And and from that, we're starting to see a really interesting pipeline of opportunities starting to develop. And and, you know, VINCI being a global organization, there's clearly opportunities to extend that overseas as well. So, again, the strategy of early deployments into the market, seeding that market, establishing the credibility of the technology is now starting to see follow on results.

25:45 At a construction level, there's different ways you can provide power into a construction market, and we wanted to demonstrate with our first year of of deployments as many of those different applications as possible. We've during the course of the last six to twelve months, we've seen our fuel cells or or hydrogen generators charge electric vehicles. You know, speaking to companies like VINCI, they've already invested a significant amount in the decarbonization of their fleet of vehicles. So if a company like VINCI has a thousand vehicles and let's say 500 of them have been converted to EVs or not converted, but they've been transitioned to EVs, then those vehicles there's a risk that when you drive to the site of the construction project that you have nothing to charge your vehicle except diesel generator. So using our fuel cell to power or charge the EVs on-site is one of those use cases.

26:34 Powering porter cabins, powering lighting rigs. We've charged electric JCB telehandlers in in London. We've provided a lot of different elements of powering across the construction road map, if you like. It's an interesting little statistic on on on the crane you can see there. We've we've not powered a crane yet. We're we're we're in discussions with a few crane operators. But a crane will traditionally have a 200 kilowatt or kVA generator at the bottom of it. But at nighttime, when you're when you when when when the the operator goes home, you still have that little light at the top of the crane that is requiring power. So overnight, that 250 KVA generator is is is reduced in the amount of power it produces, but it can only go down to, let's say, 30 kilowatts or kVA, which means you're still using approximately the amount of power needed to run 60 UK homes to run a little life on top of a crane. That inefficiency is costing the constructor not only money because they're burning diesel to run that light, but also the emissions associated with that inefficient operation.

27:40 And so where you look at construction industries wanting to reduce their carbon footprint, one of the very simple ways is to start running a a crane off the base off off the back of a fuel cell rather than a generator. Because unlike the crane, the fuel cell can reduce in its power all the way down to a couple of watts, which is all that light on top of the crane needs. So in delivering the air cooled system, which is the system used in construction, we we first started to design that that module in around June 2021. We actually announced in December 2021 that we delivered the first stacks and towards delivery of the power towers, which we launched in in in early twenty twenty two.

28:27 And then we had our first commissioning and deployment in August 2022 to Axiona. And you can see in that scheme that in about twelve months, we delivered that technology from concept to the field. And then since that, we've continued with our field deployments up until today. Milestones for this year on that bit of technology, we're looking at material cost reductions. We've already identified ways of basically taking the current capital cost and halving it during the course of this year. We're looking at building into that a lot of the customer feedback. There's nothing better than having feedback from the customer because when you when you get that feedback and you deliver on what they they they they've sought, then you you you obviously grow the opportunity to sell more systems to them. We're looking at integrating batteries, delivering our 30 kilowatt system, and again, pursuing engagement with the plant high businesses and indeed new customers during the course of the year.

29:20 With regards to the liquid cooled system, the ABB system for want of a better phrase, again, July last year, we started to design and build our first stack. That first stack was designed, built, and delivered and then put on to test by October. Such was the accelerated nature of that development program. During the month of October, ABB were present to witness that, and then we started the validation process. They were comfortable with that validation process, which was confirmed in March of this year, following on a further investment by ABB into AFC. We're now working to take that a 100 kilowatts and convert that into a 200 kilowatt system. One of the questions we do get asked quite a lot from from some sorry, from some shareholders is we've talked about cumulative 100 kilowatts. Quite simply, you can have a stack of a 100 kilowatts. You can have a stack of 50 kilowatts. If you put two fifty kilowatt stacks together and run them in parallel, you have a cumulative 100 kilowatt system. So that is the nature of what we've done with ABB. We ran multiple stacks. In this case, it was two to deliver in excess of a 100 kilowatts being the targeted output.

30:24 Now that platform, once it's delivered later this year, 200 kilowatts being delivered later this year, we expect to start a CE marking process. So we're doing all of the work in preparation for CE marking. For those not familiar with CE marking, it's a little certification logo on the on on on most products that you buy in the in the supermarket saying that that product is certified for mass sales across Europe, And that's what we're we're aiming for with ABB. I'll pass over to Peter to talk through some of those platforms now. Great. Many thanks. So as Adam says, I'll I'll talk to you the platforms, but I'm very much gonna continue the theme of speed of speed of movement, responsiveness to market dynamics, and, you know, fulfilling a very real very real need.

31:11 So the way we the way we think about our products, Adam's talked about the stacks, and you saw a photo of a stack on the previous page. So think a bit like the layers of an onion. We start with a stack. That's our motor. That's our building block. We place a module around it. And that module contains the the cooling and the balance of plant and and some of the control systems that are required. And the reason I'm emphasizing that is this modular approach sets us up really well for scaling. It also gives us flexibility and versatility around how we then deploy this technology, and I'll illustrate that in a minute. So focusing on the power tower, which as Adam says, we've got 10 of them, you know, out there generating rental income for us. But most importantly, helping us break into construction industry, getting getting the name out there, you know, getting real getting real kit on real construction sites and and bringing back an enormous amount of data.

32:11 And so this this power tower, you've got four modules. You can see them in the front, the air goes in the front and it goes out the back, keeps the thing cool. And and and that's what we delivered to Axiona. They were the first very large Spanish construction company. They were the first first people we delivered to in August, which as you'll appreciate, August in sort of Central Spain is super super hot. And so the fact our power tower was able to work under those conditions, you know, is a again, is a real validation. So power tower was on-site for three months and then we sat down with Axiona and we asked, you know, what's the feedback? We got some fabulous feedback. You know, most importantly, they liked what they saw. The next thing was they wanted it to give three times the power output. Three times the power output is probably the sweet spot for this no. Not probably. It is the sweet spot for the construction industry. And when it comes to displacing diesel, that's that's where they wanted us to pitch it. 30 kilowatts is about 50 kVA.

33:13 And, again, part of the feedback was, you know, speak our language. We, the construction sector, think in kVA. When we couple one of these up with a battery, you know, we're we're in that sort of 50 kVA. So, again, we're being as responsive as we can be. And then the the final bit of feedback sorry. And then one more bit of feedback was when you take a step back and you look at the actual throughput costs of a fuel cell, they were finding enormous savings relative to diesel. Because a diesel generator, there's a single engine in there. And if if it's, you know, it's not very good at following load. So a diesel generator has to idle much like a normal car at the, you know, the traffic lights, and you're wasting all that energy.

34:00 And internal combustion engines are only about 20% efficient. You know, of the fuel that goes in, only 20% goes into useful work. The rest goes into heat. Fuel cells start at 50% and and and and obviously get better. So what they noticed was that, you know, if you if you look at the actual throughput of diesel, I. E, you include the idle time, you include the time that diesel is not working in its in its power band. In terms of hydrogen throughput costs, and remember hydrogen is gonna cheaper and cheaper as it more and more comes on the street. And diesel is gonna get more and more expensive, you know, driven by tax credits and so on. Sorry, carbon credits, not tax credits. They, you know, they felt that we were sort of between 1020%, probably around the 14% mark, more expensive than diesel. So if we're if if if that's the gap we've got to cross and it's not a big gap and that's where we are with our first with our first sort of iteration of this product, then, you know, that makes us very excited about the future. So what does the future look like?

35:02 Well, it looks like this. As I say, instead of 10 kilowatts, Axione asked us to output 30. So you can see six modules at the front. And then where you just stand the other side of that unit, you'd see another six. That's where you get your 30 from. As you know, they didn't like they preferred the unit to look like an existing generator. So that now has a similar footprint. It's also a lot easier to move. You can see it's on a skid. You can see a forklift can pick it up. If a forklift picks up a tower power tower, it's fine. It works. But if it's on bumpy ground, you know, you've got a high center of gravity. So it's it's not ideal. And on the right, you can see a control panel, and that control panel is super simple.

35:50 And the reason we're going for simplicity and use is it's one thing talking to the sort of senior decision makers at Axione, but we need to win the hearts and minds of the guys who are running the site. And what they want to do is they just want to get on with their job and deliver the the road or deliver the building or even the tunnel. You know? And so the more this thing looks like what they're used to, the more they know how to how to operate it, the less of their time it's taking, the more time they have to do, you know, what they're paid to do. So in the space of about just over a year, we will have deployed the first power tower, tested it for three months, got the feedback, work that feedback into our design cycle and something and one of these units will be at with Axione before the end of this year.

36:39 So that's another example of how fast we are moving and how fast we think the sector is moving and where we see this where we anticipate the revenue build build up to come from. And then we've talked a lot about the air cooled and rightly so because that's the first of our three value streams. This is this is where we are with our liquid cooled. So as I said, more energy dense. This is sized to meet the upper of the two power bands that the construction sector works with. So if you've got a sort of if you're particularly if you're site constrained rather than lining two or three generators up next to each other, you go liquid cooled. The beauty with liquid cooled is it also has follow on applications for EV charging, for backup power and ultimately for maritime.

37:29 So here we've got again the first iteration. Remember the liquid cooled is the air cool in terms of development. And what we expect to see over time is the unit on the top, which is the cooling section, that will get smaller and smaller and this thing will look more and more like a generator. And once again, it's the path of least resistance. It's working with the construction sector in a manner to which they're comfortable. And, of course, the more comfortable the construction sector is in using these things, the more, know, the more motivated the plant hire companies will be to buy these things from us in bulk. So again, moving from rentals to sales is where you get your other big boost in revenue. So so those are the three those are the three products on the stocks. Back to to Adam.

38:18 Thanks, Peter. So the yes. That last product, which which Peter mentioned earlier was is is is being funded and so all this funding of it is being supported by ABB. We we've continued to work very closely with ABB over the over the last few years that we we received a number of questions in advance of this presentation on regard in regards to ABB contract, which hopefully you you understand a little bit more with the explanation provided by Peter. But we've also continued to work and grow our our relationship with ABB beyond simply e mobility, but we're now also looking at critical backup power. We're looking at maritime and and other sectors. So the relationship with ABB and their their shareholding position in us, is currently 2.2%, is is continuing to to to strengthen as as we as we continue down the journey and continue to validate our technologies.

39:10 So on the topic of flexible fuel strategy, which is moving towards ammonia crackers, many of you will have heard the story before that AFC's one of its its its USPs, it's it's its interest in utilizing ammonia as a feedstock or as a fuel for carrying hydrogen. And the logic has always been that you could integrate an ammonia cracker with a fuel cell. And we've spoken about the fuel cells oh, sorry. The the ammonia crackers that are available off the shelf, which are are quite dated, quite expensive, and and quite inefficient. Because at the end of the day, no one has really needed to make hydrogen to make ammonia, to make hydrogen again, perhaps until now. You can see in this slide, which has an extract from a press well, a a report that was released last year, late last year, by McKinsey's in collaboration with the World Hydrogen Council that the amount of hydrogen that is expected to be transported long distances, I e, international trade, is expected to grow from around 7,000,000 tons today up to 400,000,000 tons over the course of the next few decades. You can see that represented by the the doughnuts or the circles at the at the bottom right of the slide.

40:26 But if you break that circle down into green and orange, green being hydrogen derivatives such as ammonia, and the orange, which is more utilizing hydrogen and transporting it through pipelines, you can see there that the today, the percentage of the pie is is dictated or or dominated by hydrogen derivatives such as ammonia. And that whilst the percentage falls over time, the actual volume grows exponentially year on year. And so what we're starting to see now is ammonia continuing to create a, you know, a strong presence as a viable fuel for transporting hydrogen. And that hasn't been affect well, it has been affected very much by the Ukraine conflict that we see today, some of the geopolitical situations around that by continuing to see ammonia as a displacement of LNG and in particular, some of the natural gas supplies from the from the East.

41:25 If you go to the next slide, again, as an extract from that same report that McKinsey's prepared, You can see there that a large amount of the hydrogen being consumed around the world or or or produced, sorry, around the world, which is shown in blue on the map, is coming from countries like Saudi Arabia, from The Middle East, from The UAE, from Australia, from Chile, from North America. That's where locations where with solar cost or wind cost, renewable cost are at their lowest. And and and you're able to make low cost green or or clean hydrogen and then import or export that in the form of ammonia. The countries that you can see there shaded in more of an orange shade are Europe and Asia. They are the countries that will be receiving the ammonia in in from those other other exporting countries.

42:16 And so in Europe, take that as an example, we're starting to see a significant amount of new ammonia import announcements on a almost weekly basis now. And but the the challenge with Europe is that they don't actually want the ammonia. They tend to want the hydrogen within the ammonia. Hence, the opportunity to correct that ammonia in a in a way that is liberating of hydrogen and giving hydrogen a kick start in places like Europe and Asia. You can see here some extracts from from the web. All of these, you you can access, but you can see the caliber of companies that are now looking at importing ammonia from Canada, from Australia, from The Middle East. You've got new infrastructure being built to receive the ammonia in places like Port Rotterdam, in Germany by companies such as RWE, EON, Uniper, OCI, and others, BP in the middle. So this is becoming a very interesting sector, not so much because of its relationship to fuel cells and in particular AFC's fuel cells, but more as a means by which the hydrogen economy is going to be enabled going forward.

43:24 We've talked a lot about shipping and and and the fact that 45% of the world's international cargo fleet will be utilizing ammonia as its as its preferred field feedstock in accordance with what the International Energy Agency are predicting, and you can see some of those statistics again online. So the cracking market is projected to be now a multibillion dollar international market of which there are very, very few players. And AFC has, over the last few years, been developing this cracker technology, which we launched only a matter of a few weeks ago. But that cracker technology has now been able to position itself quite well as as as an enabler for some of these projects that are now emerging in the in the global market.

44:11 Importantly, the cracker, we've always talked to it in the context of of fuel cells, but it is becoming a standalone product. We are able to sell crackers even if this if if the if the fuel cell is not part of that solution. And that's an important value proposition that is starting to create value within ASC beyond simply just the valuation of the fuel cell. The technology within that cracker is proprietary to ASC. We own it all. We're going through a very deep and and productive process at the moment around patenting of that. So so we're we're very careful on what we disclose. But the market is now starting to see a great value proposition in that technology. And I think going forward, you know, we are now starting to engage with some of the market leaders in the ammonia space, some of which you saw on the previous page with regards to how AFC can partner with them to to to unlock the the hydrogen potential of ammonia as a carrier fuel.

45:08 The fuel conversion market opportunities that we're focusing on, very much looking at technologies around hydrogen refueling. Examples include European utilities who are looking at creating a network of hydrogen refuelers but are struggling to make the economics of moving hydrogen around work. In this case, you could move ammonia around and crack the ammonia on-site on a distributed basis to make standalone hydrogen refuelers. We have a oil and gas groups that we're talking to who are interested in co firing our technology or co firing existing combined cycle gas turbines with ammonia cracking and hydrogen derived from that. Maritime, again, putting crackers onboard ships to create hydrogen onboard ships, integrating it with our fuel cell technology in the bottom left, integrating it with pipeline and blending it with natural gas. And something else which is interesting becoming more interesting, I guess, is aviation.

46:05 This is not necessarily refueling a plane with hydrogen derived from ammonia. But if you think of an airfield and, you know, we mentioned VINCI. VINCI owned 33, I think, airports around the world. One of those is Gatwick, you'll be familiar with. You know, one of the observations is that a lot of the airside vehicles that are currently moving our bags around when we travel are likely to move towards a fuel cell to fuel cell fuel cell vehicles. So the refueling of those vehicles airside becomes an interesting proposition as well. So there's a very large market there. As Peter said, and I I guess I I emphasize this, the the timing of revenues from these different technologies is phased in accordance with that earlier slide. Air cooled, liquid cooled, fuel conversion. And and we've said publicly in our launch announcement that we expect to start seeing revenues from the the the cracker technologies in particular from around 2025 onwards. That doesn't mean we can't find a partner before that is willing to invest in the development such as ABB, and we are having those conversations as we speak. But that is a you know, again, the trajectory of that revenue is a is a question that we have been asked in advance of this presentation.

47:16 You can see there a couple of images of we've talked about ammonia a lot, a methanol reformer that we've also developed over the last twelve months, which has been put in the field in Spain and has has basically created hydrogen from from methanol, reforming methanol, and the ammonia cracker technology there on the on the right hand side in the in the silver canister. If you think of that silver canister, just picture that and remember that for the next slide. That's the reactor that you see on the left there. If you start putting multiple reactors into a cracker module, you then start to build the the throughput of that of of that module to create more hydrogen. And then you package it to look like a hydrogen generator system. To give you a sense of scale, that that hydrogen generator system is probably going to be sized around a a somewhere between a a washing machine size, industrial washing machine, and a and a and a fridge freezer that you might see in a home. So it's not a massive footprint, which makes it ideal for putting onto ships, but also to create modular distributed systems rather than single one off large investments in in cracker cracker technology.

48:23 Another concept that we've been working on, and and this is obviously a render of of that is is a refueler for trucks. And this is our last slide before we open to questions. But the the types of technologies that we're looking at now are enabling networks of of of refueling infrastructure across, you know, Europe and and elsewhere. And whilst this is obviously a render, this render was actually done for a a a live potential customer in Europe who is who is looking at this as as an alternative to moving hydrogen around around Europe. So lots of different opportunities. I do apologize. I said this is the last slide. We do have one more slide in terms of the outlook. But the outlook for the for the coming year, we were halfway through the year at the moment. You can gauge the rental revenues are going to continue and are continuing this year, including the sale of hydrogen, which we are delivering to most of our our our customers and partners.

49:21 But the important thing for us this year and this financial year, I mean, is that we we start looking at the pipeline of contracted revenue from plant hire commitments. And that's when we start to see the revenue profile change from rental income, which is obviously on a per week or per monthly basis to largest sale income. And we've seen that with the recent announcement with Axione who have now placed their first order for a 50 kVA system, which they will be paying for after an initial couple of weeks of of rental, they'll then have the option to buy that. So delivery of the of the of the contracted pipeline with the plant hire businesses that will start to see a strong uptick in revenue.

50:07 Please note that that that, you know, signing a contract today with the plant hire business for x units will still require the the units to be manufactured, and that manufacturing will then, know, consummate the sale, which may happen towards the end of this financial year, but the revenue may well therefore be recognized in the following year. So there's a revenue recognition timing question around all of that. But what we wanna try and deliver is contracted revenue pipeline that you can start to create evaluation around. The delivery of the ABB first 200 kilowatt system, we're still aiming to deliver that 200 kilowatt system this year and prepare that then for CE marking, which I mentioned earlier, which will, you know, will take a period of time measured in months post delivery of that system, and we'll we'll we'll basically preparing for CE marking as as we speak.

50:54 Positioning ourselves for growth in maritime and critical backup power. I don't wanna underestimate the interest that we've received from some of the world's largest ship owners and shipping shipyards. There has been a tremendous amount of interest, especially around the ammonia cracker and how you can interface and integrate that with a fuel cell. That is a longer timeline. Again, the revenues are are gonna be recognized over a longer time period. But the positioning that we're doing at the moment is critical to positioning ourselves as a as a market leader in that space. And we're very confident that there will be some very, very good traction around maritime and and and particularly data centers over the over the, you know, over the next year or or or two. Manufacturing capacity and and the focus of that. So as most of you will know, we have invested in some some semi automated manufacturing equipment already at AFC. We're continuing to invest in that during the course of this year.

51:49 One thing we are assessing now is the a preference to look at contract manufacturing so that we can scale up quicker to meet what we consider to be a fairly rapid growth in in deployments over the next few years. And and so with that manufacturing capacity, we don't obviously want to overinvest in a in a nice new shiny office today, which then is ultimately outsourced tomorrow. Of course, there is a lot of intellectual property in what we do, So that balance between manufacturing internally and protecting and maintaining that IP is fundamental to that final decision. And then around the ammonia cracker technology, the the the team are working on an accelerated basis to bring the first prototype ammonia cracker system, that that module that I mentioned earlier to to to to to fruition and the potential of putting that into a customer site or path partner site next year with, as I said earlier, the revenues starting to show probably from around 2025.

52:44 Of course, that means developing new partnerships. And, you know, I can I can say for for example, this week, have two very large organizations coming to visit us who are very much interested in the ammonia cracking technology for pilot projects in the next year or two? So, you know, we're we're we're not talking many years out, but but we're we're probably not looking at any revenue recognized in the in the in the in the current year. So that's the that's the presentation. Very much like to open to questions. That's great. Peter, Adam, thank you so much for updating investors. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the right hand corner of your screen. Just provide the company take a few moments to review some of the questions you submitted. I'd to remind you that recording this presentation along with a copy of the slides and the published Q and A can be accessed via your Investor Meeting company dashboard.

53:31 Pete and Adam, as you know, we received considerable number of questions ahead of today's event. We've also received a number of questions throughout today's meeting. So you very kindly put some of these into themes to try and address a lot of the content that we have received. One of the topics that was largely covered was around ABB. And I know you have covered a lot of the content throughout the presentation. But perhaps one question, is ABB involved in any of the future development? So so ABB are a shareholder. They are a customer, and they and we're working with them to define the the the product specifications that we are currently developing. The announcements we've made have been focused on the immobility part of the ABB value chain or proposition.

54:17 But equally, we are meeting on a regular basis representatives from from the maritime team and and and from the from from from, you know, the backup power team. I'm I'm actually traveling to to Switzerland later this month to meet with a number of their their team in in Switzerland. So, yes, we they are they are involved in the development of the technology insofar as it relates to customer use cases, and they're supporting that development program. But as as Peter alluded to earlier, in in no case are we looking at sort of any form of selling or licensing of that technology through the development roadmap. That's great. Thank you very much indeed. Turning to sales, really, a few questions around that, if I may. When do you expect construction companies or lease companies to start placing orders for multiple systems?

55:07 Well, obviously, we gotta be very careful of what we say in a in a public forum around sales projections and the like. What what I can say is, I mentioned it, sort of alluded to it earlier, that the work that we have done and the investment we've made in substantiating the relationships in the construction industry with the constructors themselves are now starting to see discussions open up with plant high businesses. And and and so, you know, some of those discussions are going very well at the moment, and we we would hope to be able to see, you know, evidence of that in, you know, in in the near term. Obviously, we don't control those timelines in the sense that there's two parties for any conversation, but, you know, the the the the evidence base that supports the transition happening sooner rather than later is is now is now very clear.

55:59 I don't know whether Peter had any comments on on on sales or in terms of projections. No. I I mean, the only thing that's worth adding is, obviously, we we work through our house analysts, and we're getting a lot of incoming from other analysts who are keen to keen to cover us. You know, this space is growing in interest and and and more and more people are following us. So, you know, the information is getting out there, but by working through our house analysts, you know, we everything's in context. And and rather than talking, you know, absolute numbers and and, you know, our customers, frankly, using us using that information to drive our prices down or even, you know, competitors using it to sort of sort of come in and and and steal our steal our business. So so so that that's that's the best way really we find to communicate with the market is is is through our house analysts and as more and more people come on board, you know, to follow them, read their notes. They, you know, they spend put a lot of put a lot of effort into getting getting those notes those notes right.

56:59 So that that's usually a good place to look as well. Thanks, Peter. Just turning to the next question. What's the road map and time frame for developing and selling ammonia crackers, and what are the biggest barriers? Right. So so I think I think we alluded to that earlier in the presentation where where you know, I I think some we we launched the technology platform, and we're very specific in referencing the platform rather than the product. And and so now having sort of established the evidence base to support support the technology, we've been working on this for years. We we are now looking at the productization of that. So so, you know, we shouldn't be expecting revenues, like, today in terms of sales. But we've said in in in in announcements, and and I've I've mentioned it earlier, 2025 is when we we would expect to start seeing revenue from systems being deployed on customer sites that could be accelerated through some of the conversations we're having, but but but I'm certainly not going to hang my hat on that. I think the the the the the ammonia cracker and the barriers to entry, you know, ammonia at the end of the day, there's a toxicity associated with that. So you need to make sure you bring health and safety along with you. We're bringing governments along with us. We're starting to see a lot of that regulatory support for ammonia in maritime industry and the industrial markets.

58:22 And and, again, as it is the second most produced chemical on earth, ammonia is a well understood chemical despite its toxicity. So I think the the the you know, we're not gonna see an ammonia cracker sitting in everyone's home anytime soon. That's certainly a step too far. But but breaking into the industrial market should should be a slightly lower hanging fruit. But, you know, having evidence basis to support it working, you know, we're starting to invest in a in a in a hydrogen in a sorry, in an ammonia test facility here in The UK, and that test facility will, you know, support a number of the the scale up initiatives and prove, I guess, the evidence that or provide the evidence base to support the health and safety aspects of of of our cracker technology. That's great. Keeping in the on the sales team, what are the critical success factors associated with achieving your goal of securing the first volume order into a plant high business in '23?

59:20 Well, so I guess the succeeding successful factors that we were looking at success factors, sorry, that we're looking at is is really having plant hires confident and comfortable that a, they can put these systems in the market, charge a margin on those, and we're we're demonstrating what type of pricing you can achieve from a rental model at the moment. Obviously, we don't disclose that for reasons that Peter mentioned, and the availability and cost of hydrogen, the fuel. At the end of the day, the availability of of hydrogen and the cost of hydrogen is a is a key driver for the economics of our systems relative to diesel. And I I can say that, you know, looking at The UK market, hydrogen is still a premium gas.

1:00:05 And but if you for example, if you look at buying hydrogen in The UK at the moment, you're probably looking at 20 to £25 a kilo. I know that we were quoted in Spain, 6 to €8 a kilo. Obviously, at 6 to 8, know, euros a kilo, you're gonna be much more economically viable than at £25 a kilo. So I've we're starting to see The UK market hydrogen prices fall. We're starting to see the availability rise, but, you know, that has to be seen understood by the plant high businesses in order to deliver on the contracts that we are you know, we're talking to them about at the moment. But we don't see that necessarily as an obstacle to getting them into the market and moving forward with with with with sales and deployments. But it obviously drives some of the the the time frames.

1:00:53 I think, importantly, for some of the plant high businesses and and even AFC, I'm I'm not suggesting we're gonna become a hydrogen generator. That's not our intention. But you are able to if you're a plant high business and you've got a critical mass of hydrogen fuel cell generators in your fleet, you can always manufacture your own hydrogen and and mitigate some of those availability challenges that might exist in a in a broader value chain context. So, you these are all the conversations we're having. I I would say and and, again, I'm I'm I'm sort of alluding to some of the questions that may be coming through on on other contracts. But, you know, we're continuing not just in The UK. We're we're we're maintaining relationships in some of the other regions. We're moving forward with a number of those relationships in the other regions, particularly in The Middle East. We've we've we've announced, you know, projects and and MOUs with with with with Saudi organizations such as.

1:01:44 Those conversations are still live today, so I I don't wanna give the impression that this is just The UK focus. But I think, you know, for for us, that that is clearly a low hanging fruit for for ASE Energy. That's great. Thank you, Adam. And for the benefit of, obviously, the investors on the call, we did schedule the call for now, but we will continue to go through these questions around topics on manufacture manufacturing share price funding and maybe a couple of other topics, but I'm mindful of your time also. If I may just turn to the Board, questions. We had a number of questions relating to the Board. One of them follows is, I'm concerned about the lack of diversity with only one female board member and no ethnic diversity. Is this something that the company is looking to change? Look. The company has spent a lot of time in the last twelve months looking at its ESG credentials, its environment, social governance credentials, and part of that is very much about driving diversity.

1:02:40 Absolutely factually correct. We have we have one female on our board joined us a a year or so ago. And, you know, we're we're certainly, as a company, looking at diversification not only at board level, but across the entire business. And so we're we're we're starting programs of we're looking at programs of work of going out and and and speaking with, yeah, academics, academia, the schools, trying to drive more women into engineering, into science. We have a a a relatively good percentage of of females in terms of the gender diversity in our science teams, slightly less skewed or more skewed towards males in the engineering teams. But, you know, we're certainly keen to make the the workplace as as diverse as possible, and and and that's from board level down. So, yes, we we we are continuing to look at that. And in some cases, we're certainly putting some some very clear actions in place to to deliver it.

1:03:33 That's great. Thank you. Turning to profitability, what sales volumes and revenue do you expect over '23 and '24? And when do you expect to reach breakeven in terms of what you can say in this forum? So so I think it's I sort of refer back to my earlier comment about working through our house analysts. The other thing to keep in mind, you know, I talked you through the the on having this sort of sequential product rollout. And and, of course, so what will happen is, you know, we'd expect the air cooled to start sort of generating those sort of margins before liquid and indeed for fuel conversion. So, you know, it it's worth thinking in terms of breaking even on on on products, remembering there'll be some sort of weighted average.

1:04:22 But, you know, it's it's sort of down track, and it rolls out over the next sort of three to five years. But, you know, in terms of public guidance, that that that's how we're how we're working is is through our house analysts. That's great. Thank you. If I may turn to technology. Why after the announcement of the Alkermann membrane technology, was there no progress with OEMs? Is it if it is better than existing technologies, why has it failed to generate any OEM contracts? Sure. So the the Alka Membrane, which we we have spoken about in previous years, You know, that that work had had seen the the membrane go out to a number of OEMs.

1:05:09 It was tested in a number of of their own sites and and and laboratories and so forth and and and received very, very favorable feedback. I think the the appointment of our new chief technology officer in particular, who has a a very strong background in membranes, identified some of the work that we still needed to do in order to commercialize these bits of equipment or this technology in terms of longevity testing, in terms of scaling some of that manufacturing processes up. And in speaking with some of the OEMs that we were engaging with, they were they they were talking about product development lifetimes of five, six, seven, even in one case, ten years before we were seeing any substantive sales of the membrane into an application. And one of those applications was electrolyzers, for example.

1:05:59 So as a as a as a management team with with, you know, a a new new technology team in particular, we took the decision that if we believe and we generally believe that the market and others in that, you know, that we've talked about today are ready to move towards commercial sales now, then investing and focusing our our, you know, limited resource or capital resources on technologies that might only see deployments in five, six, seven, eight, ten years was probably not the right focus for the company at this point in time. We, of course, still maintain all of the work and IP in the Alkermem products that we were developing. We're continuing to work on those products. We're working with some fairly internationally esteemed scientists and academics in that space who are who are giving credibility to what we're doing.

1:06:52 But in terms of the and and we mentioned it in the annual report this year that we decided to deprioritize it in favor of supporting a, you know, a a a a level of deployment of commercially viable commercially available systems and capture that first mover advantage into some of the markets in which we're targeting. It's it's you know, I I I do get asked the question, you know, did it not work? No. Of course, it works. We we're working with some companies and and and some of those companies being quoted in RNSs that we've released previously. So it's not a case it does it or doesn't work. It's just a case of we could do a lot of things as a company. But, you know, at the end of the day, we do need to focus, and and and some of that focus is reflected in the the timeline for revenue that Peter highlighted earlier. And that focus today is on commercialization and deployment of the air cooled system into the construction industry.

1:07:42 Okay. Thank you very much indeed. I'm just gonna turn to manufacturing, and then and then I'll ask you a question around the share price, but I'm mindful that people might have follow on meetings and I know that you certainly have a presentation post this call. So regarding manufacturing, how many power towers stroke crackers will you be able to produce during '23 and '24? So again, we we we haven't guided externally. That that's very much work in progress. And and and remember that manufacturing is a whole skill set in itself, and our manufacturing strategy is is is what we're working on. So clearly, hitherto, everything is being done in house. You know, we've got some great facilities down here at Dundswell. We've got plenty of room, etcetera, etcetera, but everything is finite. We've got a lot of experience in house with outsourcing, you know, using contract manufacturers. And, of course, the beauty of contract manufacturers, if you get it right, is you you get to borrow their scale, you get to borrow their their balance sheet and their systems and processes.

1:08:44 So that's sort of where we're working through. So we don't see ourselves as being constrained. We're not about to, you know, go and spend whatever, a very large amount of money on a big, bright, shiny factory. And we certainly don't need to do that before we before we scale up. So I I think over time, we'll we'll guide on that as our, you know, as our strategy sort of solidifies. But on the power towers, you know, and and there was another question in there about, you know, how much do the power towers cost? How long do they take manufacture? The answer is too much. They cost too much, and they take too long to manufacture. And that's another reason why we've not returned to the drawing board because the modules remain the same, but why we've got this different form factor. Why, you know, as part of the Axione process, we've looked at the cost savings. And the sort of the, you know, the typical manufacturing approach, and we expect to follow this, is your your first article, you take that and the next one, you you drive out 50% of of the costs.

1:09:47 And then you do it again and you drive out a further 50%. So you reduce your cost by 75% and the rest is all about scale. So there are still plenty of opportunities for driving out costs. And, you know, one example of that, the the power tower at the moment, if you look inside a lot of the connections, you know, there's sort of manual connections and, you know, that there's a real person with a real spanner turning nuts and bolts. You know, there are there are what you call click lock connections and that applies in both the electrical connections and the and the hydrogen connections. And, of course, the more of these click locks we can use, the quicker it is for, you know, whoever is assembling these things to put them together, the the the plug and play concept. So this is all developing. The important thing is we have the skill set in house to, you know, to source the right manufacturers if we go externally or indeed work if we go internally.

1:10:42 Invariably, my prediction is we'll end up with a hybrid, particularly around areas of sort of sensitive IP. IP know how, you can only protect it to a certain degree. It it walks out the door at the end of the day. So that's so where we are, and it's all part of scaling up, and it's all part of getting that scaling up right. And we do the work today means we get it right tomorrow. That's great. Thank you very much indeed. Well, look, let's finish off a question, I'm sure, close to everybody's hearts around share price. You know? I mean, I'll summarize it one. Why is the share price so low, and and what is it that you think you can do to address it? Well, certainly, you know, communication like this, hopefully, is a is a step in the right direction. Look. It's it's a it's a difficult one to answer at a at a micro level, and and that's not to to deflect the question. But, yeah, if you look at The UK capital markets, I I I heard the other day that we've had 21 where money has net flowed out of The UK capital markets.

1:11:47 You know, growth companies are now being discounted because of higher higher interest rates and and and inflation. You know, there's a lot of elements that if you look at even even the macro or even in the industry level that, you know, at a hydrogen industry level, it's it's it's a challenge with some of the some of the stocks taking similar, if not greater hits to their share price than us. I I can say that unlike other groups in that space, you know, we are delivering. We're delivering aggressively to meet customer needs. We are putting systems in the field. We are deploying products earning revenue. And I think if we start to establish some of these, you know, larger scale contract opportunities around plant hire businesses and and the like, that this the share price will will certainly see a a significant movement over the over the short term. But at the end of the day, I I I have no control over that to to to at a macro level. What I can say is that, you know, we are seeing some very good buying of the of the of the ASC share in from institutions. We know there's several institutions who are buying at the moment and are continuing to buy at the share price. So accumulating their position in in in advance of of the hockey stick curve. So, you know, we are confident that this is this is more macro driven than than the company. We've we've hit all of our milestones, and and and you'll see more revenue hitting

1:13:19 the books very soon. That's great. Adam, Peter, thank you very much indeed for your presentation and for answering those questions. And thank you to all the attendees for your engagement this afternoon, and the company review all these questions. And if there are any additional responses to be published, we'll notify you by e mail when they're ready for your review. Adam, Peter, I know that investor feedback will be important to you both, and I'll shortly redirect investors on the call to give you their thoughts and expectations. But before doing so, perhaps just a few closing comments. Look, thank you, Mark. You know, I I appreciate the opportunity to present to to our shareholders today. And and I know there's a number of on on on this call who are not shareholders yet, and hopefully, this will change their their opinion. But, you know, as I said earlier, I think we have we we have achieved a tremendous amount. Certainly, in the in the years that I've been at AFC, we've achieved more in this last year than we have for the, you know, almost the entirety of the time before beforehand. And and that comes about it by by, you know, firstly, the fundraisers that we did bringing in the critical mass of people, bringing in the quality of people we have at AFC. We we now have a world leading expert team of of of engineers, of scientists who are enabling the types of progress that we're seeing.

1:14:35 Now, fortuitously, for us, that progress is being made at a time and in an environment where the decarbonization of diesel is is is is is growing and is becoming more more clear. So we think we we've hit the right timing. We've got the right technologies, and and now it's it's for us to deliver on that. So, yeah, looking forward to the to the twelve months ahead. That's great. Adam, Peter, thank you very much indeed for updating investors this afternoon. Please ask investors not to close this session as they will now be automatically redirected so that you can provide your feedback in order that the company can better understand your views and expectations. This will only take a few moments to complete, but I'm sure will be greatly valued by the company. Behalf of the management team of AFC Energy PLC, we'd like to thank you for attending today's presentation.

1:15:21 Good afternoon to you all.