Advent Technologies Holdings, Inc. (ADN) Earnings Call Transcript & Summary

Good morning or afternoon, depending on where you're located. My name is Jim Coffey, and I'm the Chief Operating Officer and General Counsel of Advent Technologies Holdings, Inc. On behalf of the entire Advent team, I welcome you to our first virtual Investor Day. We're excited to have you join us today, and we look forward to sharing our insights with you. The last 18 months have been monumental for the company and pivotal for Advent's growth. Back in February of 2021, we celebrated the company's successful listing on NASDAQ, and our innovative technologies and product offerings have continued to expand worldwide. As the world embarks on the journey towards net zero emissions, our employees are working tirelessly with a focus on innovation, aiming to replace diesel generators and combustion engines with clean, efficient fuel cells and fossil fuels with green hydrogen and renewable zero emission fuels. Over the next 2 hours, executives from Advent will speak about the company's mission to bring HT-PEM technology to the marketplace by building world-class fuel cells and electrolyzers with a low total cost of ownership and high environmental impact. The event will include 7 presentations, a break and a Q&A session at the end. Our speakers will be our Chairman and Chief Executive Officer, Dr. Vassilios Gregoriou; Dr. Emory De Castro, Advent's Chief Technology Officer; Dr. Christos Kaskavelis, Advent's Chief Marketing Officer; Dr. Nora Gourdoupi, Senior Vice President of Corporate Business Development; Kevin Brackman, our Chief Financial Officer; Naiem Hussain, the company's Chief Investment Officer; and myself. In addition, you will also hear from Hydrogen Europe's Chief Executive Officer, Mr. Jorgo Chatzimarkakis; and industry leaders from different geographies. For the Q&A session, I encourage you to send us your questions during the presentations, either by using the chat box on your screen or by e-mailing them to investorday@advent.energy. Before we proceed with the presentation, I'd like to take this opportunity to let you know that we will be making forward-looking statements in today's presentation, so I would like to encourage all participants to review the full presentation materials, including the disclaimers as well as Advents materials filed with the SEC, including risk factors set forth in our most recent 10-K. Some of today's presentations will include forward-looking statements, which are, by their nature, subject to significant risks and uncertainties. Thank you for your time, and we hope that by the end of today's event, you will leave with a better understanding of the core advantages of Advent's technology as well as the company's strategy, markets, product portfolio and R&D pipeline. I'm now very pleased to introduce to you our first presenter, Dr. Vassilios Gregoriou, who has served as Advent's Chairman and Chief Executive Officer since the company's inception. Vassilios is a scientist by training, and his published works as co-author includes 3 books and more than 100 scientific papers. Vassilios is also a co-inventor of 16 patents. Vassilios, I'll turn the stage over to you right now.

Thank you, Jim, and good morning, everybody. I want to welcome you all to Advent's First Investor Day. I hope you find today's presentation insightful. Our main goal for today is to provide an in-depth analysis of Advent's vision, technology, products and future targets and explain how the recent developments have accelerated our growth and strengthened our position on the global hydrogen map. Regardless of the location and field of expertise, all our employees are connected to self-belief that the work can decarbonize quickly with green hydrogen and fuel cell technology. We know Advent can and will play a pivotal that are rolling this transformation. Affordable clean energy and energy independence are becoming strategic objective for the world. We aim to bring our technology to the mass market by building world-class fuel cells electrolyzers with a low total cost of ownership and high positive environmental impact. We've seen a reversible path of fossil fuel replacement, and Europe is taking a central stage here. Back in May, I had the privilege to participate in the European Electrolyser Summit, which the European Commission organized in cooperation with Hydrogen Europe. There, Advent and 19 of Europe's leading electrolyzer manufacturers agreed to scale operations to reach a combined annual electrolyzer manufacturing capacity of 17.5 giga across Europe by 2025 as well as exceed that capacity by 2030 to reach the projected demand for renewable and low-carbon hydrogen. Our joint commitment to a tenfold increase in Europe's electrolyzer manufacturing capabilities by 2025 is firmly connected with REPowerEU, the commission's plan towards secure and sustainable energy and independence from Russian natural gas. Monday, June 6, 2022, also marked a historic moment for America's transition to clean energy technologies. The White House briefing room officially announced bold executive action by U.S. President Biden to spare clean energy manufacturing to reduce energy cost for families, strengthen the domestic grid and tackle the climate change and environmental injustice. As part of the Defense Production Act of green energy, President Biden has authorized the U.S. Department of Energy, one of Advent's key strategic partner in U.S., to accelerate the manufacturing of critical clean energy technologies, such as electrolyzers and fuel cells. We firmly believe that hydrogen [ movements ] here and all of us at Advent Technologies are thrilled to be part of it. What we must do? First of all, we have to produce green hydrogen. The electrolyzer global capacity has to increase massively. Advent's Green HiPo project in Europe is well positioned to meet this need. For fuel cell, in addition to be hydrogen, we should use eMethanol, ammonia and liquid hydrogen carriers, and that's where the strength of Advent is. Advent Technologies does not need pure hydrogen to operate. And because it works with hydrogen carrier fuels, does not require $1 trillion infrastructure to begin deployment. The time for fuel cell is now. People are done with diesel generators, the backbone of how we create energy today. Why? Because of policies. If we face this out, we're left with 2 options: batteries, but batterie can only cater to small-scale energy needs. And therefore, there is a void. And this void is for large energy, large-scale energy supply, and this void can be addressed by fuel cell technology. It is a vital importance for us to replace all our engines and all our fuels in the next 15 years. So in our opinion, we are going to see an exponential growth in the sector over the next 10 years, much more than most people anticipate. It's going to be similar to the expansion of mobile phone technology. What we must do? Since our IPO 18 months ago, our goal has been to reduce the total cost of ownership of fuel cells to the point that we can replace diesel generators and combustion engines. We need basically to change the technology. Most of the world's population cannot afford to switch to more expensive solutions just for the environmental impact. Advent should be able to provide the most efficient fuel cell products as the best price in the market. Advent is uniquely positioned as an enabler. We're proud to be one of the very few high-tech companies on the planet with very solid and highly differentiated fuel cell expertise. For many years, we partnered with the European Union, the U.S. Department of Energy, the U.S. Department of Defense and plan to partner with Japan and South Korea with the top institutions and world leaders. Through joint development agreements with select partners of strategic, we plan to bring the next generation of fuel cell to the mass market, therefore, replacing the need for conventional fuels while producing clean power. Of course, apart from our differentiated high-temperate PEM technology, as a co-founder, I'm very proud to say that we have another tremendous advantage. And this is our team, a world-class team of material scientists, electrochemists, engineers, we're all focusing on clean energy challenges. We have put together a great team of innovators from different geographies and cultures to create a single Advent global family with a set mission to accelerate global decarbonization and provide energy security and independence to our people. We also populated the organization with top-level sales and operational team and we'll keep on seeking top talent in the next expansion phase of the company. Currently, we sell fuel cell systems in stationary and portable defense market. Our high-temperature PEM [indiscernible] fuel cells enable off-grid, portable, auxiliary, combined heat and power or stationary power applications. Our fuel cells provide reliable high-quality power during emergency response situations, such as defense, law enforcement, transportation safety as well as in non-emergency situations like telecom power, remote construction site, highlighted trade show displays and stuff like that. We also expanded the mobility. One of the key objectives is to become a key fuel cell provider in this market. Through the new Advent MEA, we will soon be able to manufacture fuel cells that they are at least 3x lasting longer, and they have doubled the power density from the previous system that we have. We believe this development will revolutionize the fuel cell industry. This will be the first PEM-based fuel cell worldwide that we can consistently operate above 100-degree Celsius, more than 10,000 hours and are ideal for heavy-duty mobility. In addition, the high-temperature PEM technology can support multiple fuels, [ ill ] fuels and low-grade hydrogen onboard and operate under extreme conditions, minus [indiscernible] Celsius to plus 50-degree Celsius. The above is essential for mobility and clearly separates us from current PEM technology competitors. We recently announced that we're also expanding to electrolyzers. We have received notification in June from the Greek state for funding under the Important Projects of Common European Interest, IPCEI, hydrogen technology. The name of the project is Green HiPo. The scope of Green HiPo over the initial period of 6 years is to manufacture fuel cell system and electrolyzers. It is intended that the production of these systems will take place in Greece and in particular, in the region of Western Macedonia. Advent's Green HiPo project was originally among 5 projects out of 20 companies from Greece that they were sent to EU for the IPCEI funding. These 5 projects were then subject to detailed review and due diligence process by the EU, resulting in 2 projects notified by the Greek state. The notification in the first wave to comprise IPCEI hydrogen technology is a testament of the world-class innovation that Advent Technologies possesses and belief that Greece and EU have and Advent's ability to deliver such an important project. Upon the new notification, which we expect in July, Advent will receive a total funding of EUR 782 million for this project. The funding will be made available over 6 years. Green HiPo is focused on innovation and the production of high-temperature PEM fuel cells electrolysis. Through Green HiPo, Advent is expected to produce electrolyzers with a total capacity of 1.5 gigawatts and fuel cells with a total capacity of 120 megawatts over 6 years. We intend to also create more than 650 new jobs because of this project. We look forward to playing a key role in decarbonizing global power production via hydrogen. Dr. Nora Gourdoupi, our Senior Vice President of Corporate Business Development; and Naiem Hussain, our Chief Investment Officer, will discuss the project in detail a little bit later. Advent has created a very efficient fuel cell that operate under extreme temperature, humidity and air quality using pure hydrogen, but also a variety of other hydrogen carrier fuels, hence our motto, Any Fuel. Anywhere. Dr. Emory De Castro, our Chief Technology Officer, will provide an in-depth analysis of a high-temperature PEM technology in the next presentation. Where revenue is coming and where revenue will come from? Our product strategy is currently targeting the power generation sector, large-scale remote portable and the heavy-duty mobility sector, automotive, aviation, marine. Since our IPO in 2021, we have achieved significant milestone and entered into agreements with world-leading automotive manufacturers and companies operating in telecom. New products like electrolyzers, DIGI-TRONIC and the new MEA, which is currently under development with the U.S. Department of Energy, will drive our future revenues. The market opportunity is huge, and our Chief Marketing Officer, Dr. Christos Kaskavelis, will share detail on Advent's business development and growth model and how we aim to enhance our position further in the clean energy space. 2021 was a pivotal year for Advent. The year opened with the company's successful listing on Nasdaq asset and evolved rapidly with strategic acquisitions and expanding Advent's product offering. In March 2021, we announced a lot of our joint collaboration with the U.S. Department of Energy for next-generation fuel cell, technology and our production -- new product development and manufacturing facility in terms of mass in the United States of America. During the same month, the U.S. Department of Defense selected our wearable fuel cell for 2021's validation program. One month later, our strategical operation with the U.S. Department of Defense was further developed as we signed a new contract with them for our wearable fuel cell. July 2021 was also a significant month for our growth since we're nominated to be part of the first wave IPCEI hydrogen, and we also launched our M-ZERØ fuel cells to significantly cut methane emission. At the same time, we completed the acquisition of German fischer eco solutions, and Danish Energy to create a global vertical integrated fuel cell leader. Finally, in October 2021, we announced the successful installation of the Advent fuel cell system in the Philippines telecom sector. Late in December, we signed an MOU with BASF to secure the supply chain for large-sale projects. Finally, our fuel cell unit for the marine sector developed within the frame of the RiverCell consortium passed safety testing and the safety assessment. Turning now to 2022. It has already been a historic year for us. We have proceeded with potential investments in electrolysis while also becoming a system company and expanding new technologies across all 5 continents of the world. The first 7 months of this year has been marked by new partnerships and contracts for our MEA electrochemist components with key global players. In March 22, we announced the availability of our next-generation MEA which is currently developed under the framework of the novel program with Los Alamos, Brookhaven and National Renewable Energy Lab. In addition, in April, we announced our collaboration with Hyundai, under which Advent and Hyundai will work together to assess application for Advent's proprietary technology in supplying Hyundai's high-temperature fuel cell needs. During the same month, one of our longstanding customers from power units completed another order for high-temperature PEM MEAs. May was also quite important month for Advent. I was highly honored to be part of the European Electrolyser Summit in Brussels, as I said before. There, along with Commissioner for Internal Market, Thierry Breton; CEO of Hydrogen Europe, Jorgo Chatzimarkakis and 20 CEOs and executives represented European electrolyzer manufacturers. We met and signed a joint declaration, establishing a clear goal of pave the way towards achieving the objectives of the REPowerEU proposed hydrogen accelerator. In the same month, Advent entered into technology assessment agreement with the second large global automotive manufacturing. Unfortunately, for confidentiality reasons, we cannot disclose its name now. Finally, in June 2022, we officially received notification for the Green HiPo totaling EUR 782 million. As we're approaching '23, we aim to scale up capacity in the U.S. as well in Western Europe and Greece through new state-of-the-art facilities and further strengthened our strategic partnerships with the DoE and the DoD. At the same time, we already are in advanced discussions for joint development agreements with large global players, and we're also pursuing significant product development activity around portable of grid, aviation and mobility. Providing clean energy is our global objective and to achieve this, we must balance the 3 Es: environment, energy security and economy. Today, our COO and General Counsel, Jim Coffey, will address this issue and provide an overview of Advent's global operations and ESG focus. Also during today's presentation, our CFO, Kevin Brackman will provide the financial data and share details on Advent's growth catalysts and future targets. In summary, we can definitely say that finally, the hydrogen economy is here. Globally, an average of $38 billion per year is expected to be invested in the hydrogen and fuel cell sector between 2020 and 2040. Advent will help decarbonize the world faster by bringing its highly differentiated high-temperature PEM technology to the market. Also, through Green HiPo, Advent expects to receive a total funding of EUR 782 million over a period of 6 years and will cooperate with at least 20 European entities across the value chains in this project. We believe we will play a leading role in the clean energy transition by building world-class fuel cells electrolyzers with a low total cost of ownership. Thank you very much for your attention.

Thank you, Vassilios. I'll now turn it over to our next presenter, Dr. Emory De Castro, who's served as Advent's CTO since 2013. Emory is responsible for the company's overall technical, manufacturing and product development. He has over 20 patent applications spanning fuel cell materials and catalysts. And before joining Advent, he held leadership positions at BASF and De Nora North America. During his presentation, Emory will provide useful information on Advent's proprietary HT-PEM fuel cell technology and its vast potential to accelerate global decarbonization efforts. Emory?

Thank you for the introduction. I'm Emory De Castro, CTO of Advent Technologies. I'm happy to be with you today and excited to be talking about our technology. What makes Advent Technologies different than the other fuel cell technologies? First of all, it's because we operate hot. Because we operate hot, that gives us certain advantages. For example, we can use many different fuels. We can use pure hydrogen or biofuels or hydrogen carriers. Second, we have lifetime and that we have great resilience in very hot and dry climates and wet climates, cold climates. So we could really work anywhere around the world. And lastly, because we operate hot, we have very high efficiency systems, and we are efficient not only in our use of fuel, but our ability to effectively remove heat and keep the system running. Now we know that the future fuel is green hydrogen made by solar and wind. That's given. But there are still some issues. Hydrogen is very hard and expensive to transport in either the gases or the super-cool liquid hydrogen state. And there are some hydrogen carriers that you can actually convert this to. For example, environmental methanol, liquid organic hydrogen carriers or ammonia, you can blend it with renewable natural gas or even use biomethane. And all these fuels are ideal for really transporting green hydrogen. By putting them into a liquid state, you can use the existing infrastructure and move it to where you need it and then break apart the hydrogen again. And this is what makes Advent's technology, the high-temperature PEM well matched to the green hydrogen of tomorrow, but also these liquid carrier fuels. In fact, whether we go to pure hydrogen in the future or hydrogen carriers, Advent's technology we can work with either way and be applied to trucks, ships, aviation, off-grid or buildings. The fact that we can use with multiple fuels allows us to address many markets that exist today. For example, on the water, it's pretty much commonly believed that ships will either use environmental methanol or ammonia instead of hydrogen carrier. And it's really, the case is quite simple: you cannot pack enough hydrogen, whether in the liquefied state or the gaseous state to be space effective for marine. In fact, the ships, for any return on their investment in building ships or using ships, space is critical, right? This is where their business is based on. And to be quite frank, hydrogen just takes too much space. In fact, if we look at the spaceship on the left that red is the hydrogen tank for the space shell. Also, these hydrogen carriers carry a lot of energy. For example, if we look at the methanol energy per volume, per liter, 4.3 kilowatt hours per liter from methanol versus hydrogen, which is 2.6 kilowatt hours per liter. So there's a lot more energy per volume when you're in this liquid state with these hydrogen carriers. And this also applies to heavy-duty automotive and trains and not only in addition to the space savings, but by having fuel flexibility, whether it be ammonia or a liquid organic hydrogen carrier, our fuel cell technology has this capability to work with these different fuels. And so thus, for your trucks, depending on where you are in the world, you have the capability to use different hydrogen carriers, but use the same fuel cell platform. And that ultimately, that fuel flexibility allows you to reduce your cost per mile. There's been a lot of discussion on how to have heat and power for buildings. Today, especially in a lot of cities, the so-called city gas is natural gas. And there's been discussion of now blending city gas, natural gas with hydrogen, made through either wind or solar in order to make this and move that energy source more renewable. And again, it's the Advent fuel cell technology that allows us then to use either the natural gas or the natural gas blend with hydrogen or ultimately the pure hydrogen. So again, this fuel flexibility that allows these markets. And then lastly, for off-grid power, whether it be a small remote system to power batteries, recharge batteries in the field, or for surveillance on our national borders, again, having a small cartridge of environmental methanol makes logistics of these fuel cells far better than just pure hydrogen alone. When we think about the different fuel cell types, there's solid oxide fuel cells, carbonate fuel cells, phosphoric acid fuel cells, the well-known low-temperature PEM, which is used widely today for hydrogen-fueled vehicles and then Advent's high-temperature PEM. And viewing these as far as a match for heavy-duty transportation, whether it be on the water, in the air or on the ground, each has certain strengths and weaknesses. But for transportation, in particular, the solid oxide, the molten carbonate are not that well matched. They just don't have the power density that's needed. They have long start-up times. Phosphoric acid fuel cells are very good for fuel flexibility, but only moderate power density, so it's not that relevant. What is very good about phosphoric acid fuel cells is that they run independently of water. So potentially, they can run hot and dry places. But again, they don't really have the power density that's needed for transportation. This is why, low-temperature PEM today tends to be used in transportation applications, but it really suffers from 2 key things: one, fuel flexibility, they can only use highly purified hydrogen, 99.99% hydrogen, if not pure. And they need to keep water in the membrane. So they're not that flexible when they're running in very dry locations. It is actually the Advent high-temperature PEM that addresses all these things. So we have fuel flexibility. We have high power density, and we run independently of water. That's summarized here when we talk about long lifetime and working anywhere. The radar chart on the left, at the 12:00 position talks about resilience. And the fact that we can run hot typically between 80 and 200 degrees C compared to the low temperature, which is shown in the red figure. You can go at high 65 to 75 for low temperature, maybe up to 90, but the lifetime go down. But for us, we go to 200 or 240. And the fact that we can run hotter means it's easier to get rid of that heat. It's really a heat gradient that allows you to cool these things off. So the larger the difference between the ambient temperature and your fuel cell temperature the easier it is to cool, which is really just how our automobiles run today. And so we have this great ability to remove heat. Second, on the right, runs humid, runs dry or wet. So this is now the change in relative humidity. So the span for us is really 100%. So we can run completely dry in a desert or we could run in the jungles of Malaysia, where it's very humid, very hot because our membranes do not need water. And we can conduct the protons in the absence of water, and this is really the key part about our materials technology where is low temperature PEM, you need water in that membrane to conduct protons and thus, you need to control that water, have a very narrow range. Our peak power moving then clockwise, this is what's really needed for transportation. We're now starting to match, if not exceed, low-temperature PEM, power density. Fuel flexibility really comes from the temperature. Here, for example, we can use 98% hydrogen, 2% can come from contaminants like carbon monoxide. This is why we can use any fuels, whereas low-temperature PEM, 99.99, if not better, in fact, 10 ppm of carbon monoxide will actually shut down a low-temperature PEM fuel cell in time. There's a hidden benefit as well. I've talked about fuel flexibility because of the temperature, but also because of the temperature, if you're running a fuel cell in polluted air, the cathode, the air side of the fuel cell can also get poisoned. But again, we run high temperature. Those poisons don't impact us nearly as much as the low temperature PEMs. Lastly, there's lifetime. This metric is just using time to 10% voltage drop. And here, we can see substantial increase. This is actually projected from laboratory results, but really showing very stable performance and the ability to start to meet what is needed in heavy-duty transportation. High-temperature equals high efficiency. And again, the efficiency work here addresses 2 things, not only fuel use, how effective you're using your fuel, but also how well you can cool. For example, if we are looking about fuel cell systems, powering electric planes, you need a certain amount of air exchange to cool the fuel cell and here, if you have a large radiator and a plane, the drag to the air is enormous. So it really makes it impossible if not difficult to fly in all-electric plane with a low temperature PEM fuel cell. On the other hand, if you have very hot-running fuel cells, you have a great temperature gradient and your drag within that plane is very low. The same exact thing applies to trucks. In fact, think about big Class 8 trucks today, running up a mountain in the middle of a desert and if it's a low temperature PEM, you cannot build a radiator big enough to cool that truck. It does not work. But for high-temperature PEM, because of this high temperature gradient, we can run in a desert. We can run pulling that truck uphill under a high-powered load. So it really gives you high efficiency in how you're able to cool. And then lastly, for the case of buildings when you're making combined heat and power systems, now you get very effective use of your fuel, that is you're producing both hot water or steam and electricity. So there is one part of the efficiency, but also the quality of the heat that our systems give up is very high quality. We can produce steam. And for a lot of centralized heating plants, steam is of great value because now you can move that heat around to many different homes. You cannot really do this with low-temperature PEM. Well, how did we get here? Advent has been rooted in membrane technology, materials technology. But I'd like to point out that the first low-temperature PEM membrane DuPont's Nafion was invested in the mid-60s. And now it's 60 years later, and we firmly believe that this material has really reached the end of its development cycle and how hard you can push it and the barrier of 100-degree C still exists. It was our founder, Dr. Gregoriou, that actually identified our first, Advents first high-temperature PEM membrane and engineering polymer came out of the University, and we released Generation 1 at that time. BASF had come with additional innovations, Generation 2 was released later on roughly a little bit over a decade later. And in fact, Advent makes and sells this product. Now through our relationship with the Department of Energy, Los Alamos, Brookhaven, National Labs and NREL, National Renewable Energy Laboratory and our award for commercializing this third-generation high-temperature PEM, we've now launched the beginning of a third-generation high-temperature PEM, which really is fantastic material that allows far higher power compared to our early materials, which allows us to get into these transportation markets. But that's not the end of the story because Advent has always had a long-term plan and strategy to leverage our materials technology, our materials know-how into hardware systems, thus completing the entire value chain. And we've done this basically through acquisitions, we purchased one of the leading high-temperature pump companies for portable, lightweight systems that's UltraCell, now called Advent LLC. We are leveraging their knowledge on how to build lightweight compact systems into now larger platforms for transportation applications, whether that be marine, aeronautical or heavy-duty trucks. And then secondly, we acquired a company called SerEnergy and fischer eco systems. Combined, these groups actually make the stacks and the systems for stationary power and now being used largely for telecom backup in remote places where we're really showing the ability for these systems to work reliably under extreme conditions that the earth offers. We now have a team of 200 strong top material scientists and fuel cell engineers. We've been working on this technology for over a decade. We have development and manufacturing hubs in Boston; our advanced stack and cooling group is in Silicon Valley, California; Denmark and Germany makes up the systems and the stacks for stationary power; and then in Greece, we have a very advanced group that makes polymers, polymer films as well as MEA assembly. This is all protected by a deep patent portfolio of over 190 patents that either issued license and pending. And as I said before, we have a very strategic partner in the U.S. Department of Energy with regard to the next-generation materials that's Gen 3. And also, I'll work with the U.S. Department of Defense and using our portable systems to make a difference to the soldiers out in the field today. I should say that we were actually an exclusive awardee of innovative program involving Los Alamos, Brookhaven, National Lab and NREL regard to this Gen 3 membrane electrode assembly and some very advanced catalysts. We are selling fuel cell systems today. The SereneU was developed for stationary power systems, and our goal here is to replace the diesel generator. In fact, it is doing that today. For example, in Malaysia, with 5G, 4G telecom systems, the diesel generator set has lots of difficulties being reliable when it's hot and humid or cold. In fact, diesels, the worst conditions for them are off/on running. They should actually be running on most of the time, but a fuel cell does fine when it's in the passive off condition and then comes online. So we've been showing reliability and making a difference in the field for telecom backup. DIGI-TRONIC on the lower left, this is now leveraging Advent LLCs, advanced stack technology, making lightweight compact stacks for eventual deployment in trucks and aviation and marine. Now on the upper right, we have the Honey Badger. This is a defense system. And to give you some example of the value of this in the defense industry, today, a 3-day mission for the electronics soldier, they would typically have to carry 125 pounds of lithium-ion batteries. But now with the Honey Badger and roughly 3 gallons of methanol, they can reduce that down to 25 pounds. So this has real value for the soldier in the field. Second of all, these systems can actually be used for remote surveillance. With enough fuel, they can go for a long period of time. This is important for national boundaries and things of that nature where you need long-term remote surveillance of that barrier, the border. Lastly, there's M-ZERØ, the lower right. This is making a difference in the Canadian oil fields. Today, they have actually shown to work throughout the Canadian winter. They are controlled in critical valves in the oil fields and the oil towers, where they're able to shut off any unwanted release of methane to the atmosphere, methane is a very potent greenhouse gas. And so now with the M-ZERØ of controlling the valves throughout the Canadian winter, we can actually eliminate or reduce the unintentional release of methane to the atmosphere. So at this point, Advent controls the entire fuel cell supply chain. We start with our base materials of membranes and electrodes, we manufacture MEAs. They go into stacks. Those stacks then get combined into complete systems, whether it be combined electromechanical controls in power electronics goes out into the systems that are out in the field today. And so by having the complete supply chain, we're able to reduce our costs and actually control the quality of the systems from the beginning to the end. For example, here's a Serene power system. This is operating on methanol or environmental methanol. We have building blocks of 5 kilowatts. We can put up to 3 5-kilowatt units in the upper chamber. The lower chamber in this model is a methanol tank. And in this embodiment, up to 4,400 kilowatt hours of electrical energy can be there. But you can also have external tanks as well if you need truly remote systems going for a month, if not more, in the field. We've designed this as a modular system to make replacement of any of the units easy to do, not only to replace a unit in the field but also to service that unit in the field, especially in remote places that are hard to get to, easy mount and unmount, we don't need a sophisticated field service technician. And it's relatively easy to go through our training program to service these in the field. So it works out very well for our customers that are now replacing their current backup power systems with us to SereneU. When we talk about membrane electrode assemblies in our core technology, it actually is a combination of several technologies and several specialties, and we have these specialists in these various fields. So for example, the membrane at the core, this is the component that allows protons to be conducted the absence of water and operate the higher temperatures. We have a very sophisticated team of polymer chemists that can make these polymers. And then a separate team that takes the polymer and cast it as a film. So there's sort of a casting team or a coating team as well. Secondly, there's the electrodes. The electrode is a very sophisticated structure using what we call the 3-phase interface. Here, we build optimum structures that allow us to operate at high current, high catalyst utilization. And that, again, is a separate team that develops inks and coatings and structures. And then lastly, there's a third team, we call the automation team. And here, they put the membranes together with the electrodes in developing automated systems to put these together at a very low cost and high speed to ensure high capacity and then applying and making a further automated system that takes the assembled membrane electrode assembly and puts that into stacks. So with these advances, like scaled-up materials, automated assembly of MEAs and stacks, we project a very steep decline in price as the volume increases. And so you can see here in our dollars per kilowatt for the MEA, starting to make this then -- once we get to these type of levels, where you see the costs go dramatically down, would allow us to build systems that are very competitive not only with diesel, but other internal combustion engine type strategies. And this is a main goal of company is getting our cost down, our capacity up and then really addressing internal combustion engine markets. So for example, with the group in California, we have DIGI-TRONIC, a very simple design, designed for low-cost manufacturing. These are geared for high voltage output between 350 volts and 800 volts. This is where the transportation industry is going. High voltage allows you to work a lot more efficiently, drive your electric motors with far more efficiency and not lose a lot of your energy through the resistance of a high current system. So high voltage is key. Second of all, another innovation from the team is individually controlled sub stacks. So this way, if there is a low-performing substack that can be digitally switched out of the whole platform, thus allowing the stack to run longer and to run harder. What you see here is a skateboard designed as a flexible form factor can fit in the undercarriage of a vehicle. But the way DIGI-TRONIC is designed, we can also repackage the individual strings and that could go into some more of a rectangular or block configuration, if needed. And then lastly, with regard to DIGI-TRONIC is we have very superior heat management and removal. Because we can run hot, up to 200 C, we can show a very effective running in hot climates, lower drag profiles with smaller radiators and really well matched to the needs of heavy-duty transportation. When you think about our business, whether it be in the ships, the planes, the trains, at the end, we're actually selling kilowatt hours, right? We're selling power for a certain period of time. And so your total cost of ownership really depends on getting as higher power possible out of a single unit. And so here, for example, for our next-generation third-generation materials, we can see a future to using almost the same footprint of a 10-kilowatt unit, but now getting 30 kilowatts, thus increasing the power for the same cost. But second of all, it has to do with lifetime. And if we can increase the lifetime, we're getting more hours at the same unit, thus increasing overall kilowatt hours. And so we can see that with these innovations, we can see a clear path to decrease in the total cost of ownership for our customers as we implement these out in the field and in various devices and systems. So in conclusion, when you think about Advent's technology, being able to use fuel cells anywhere and any fuel. Because we run hot, we have this exceptional capability to run with multi fuels. So we're not locked into a fuel that's available in a certain geographical area. We can use pure hydrogen produced by wind and solar, we can use hydrogen mix with others or we can use hydrogen carriers. With regards to lifetime, we have high resilience in very hot and dry, very cold, very wet conditions. So really well match the conditions around the world. And lastly, because we run hot, we have high efficiency, not only in our use of fuel but in our ability to remove heat. And with that, I conclude, and thank you very much for your time.

Thank you, Emory. Now I'd like to take this opportunity to introduce our next presenter for today. Chris Kaskavelis joined Advent as CMO in 2019. He has served 13 years in CXO positions in technology companies that IPO-ed on NASDAQ and London Stock Exchange. Chris has recruited a team of highly experienced fuel cell executives and will bring us up to speed with Advent's business development efforts. Chris?

Good morning, and welcome to Advent's Investor Day. My name is Chris Kaskavelis, Chief Marketing Officer. And today, I will be talking about sales and marketing department. Emory already talked about our technology, the high-temperature PEM technology and the differentiated brand that this provides. I'm going to try to talk here today now about how this translates to revenue and the growing business. So in terms of potential applications of this technology, we have identified some areas where we are putting most of our focus right now. And these are stationary power systems that are aimed to replace the diesel generator, portable power systems for small power needs for infrastructure, surveillance and defense. And finally, mobility for trucks, aviation and marine. And also electrolyzers that is very related to the IPCEI development program that Vassilios talked about before. I'm not going to cover electrolyzers today, but I will everything else. So starting with stationary power systems and replacing the diesel generator. This is a system that we already have in the field, the fuel cell that has been developed by SerEnergy and acquired by Advent by last year and developed further, and the goal is to replace diesel generators in a variety of applications across the world. These generators have obviously one big problem right now because of all the pollution as well as the greenhouse gas emissions. And also, it's still a growing market because there are many parts of the world where there is a need to pace power and to have more power when there's bad grid or off-grid applications. So the market for diesel generators, believe it or not, is still growing, and it is a very interesting market for us. Now one of the most interesting applications is the telecom backup power, mobile towers that require backup power because they're off-grid in our park grid situations. You can see here the Advent SereneU fuel cell system and also the carbonate where it has 2 systems, and it runs also and on the bottom part of the carbonate, it has the green fuel and runs on methanol, which is a hydrogen carrier. So there are more than 1 million telecom backup towers already around the world, primarily in Asia, Africa and other countries with bad grid or off-grid environments where you need to have from 5 to 15 to 20 kilowatts of power there and be able to switch it automatically and support telecommunications. The number is still growing. Grids get better in some countries, but you need a lot more towers because of 5G. 5G requires network that is very dense in terms of towers and more and more towers are required because it also requires more power. Finally, there are a lot of situations so primarily metropolitan areas with rooftops where it is mandatory to remove diesel generators because they are loud and noisy and they create a lot of pollution, et cetera. So obviously, the quiet train power that the urban fuel cell can provide there is of a great interest. And definitely, what we will see more and more in the next years is that simply diesel generators due to government mandates and climate agendas and DSD agendas of the telecom companies will simply not have a license to operate anymore. So there will be a mandate to replace them. One of the unique advantages of our product is that it can safely use hydrogen carriers instead of pure hydrogen which in terms of logistics makes a huge difference when you're talking about supporting a network of towers in the Philippines' jungle or in the middle of forest or anywhere else where you simply don't have the ability to deliver hydrogen in any form, right? So what we can use? We can use biomethanol or eMethanol down the line. We can -- and these are clean fuels. They're fuels like eMethanol that eventually very soon will be produced from green hydrogen. So it's a liquid carrier of green hydrogen. But -- and we have the unique advantage of being able to use these fuse directly without having to reprocess and back to very pure hydrogen case. So that creates a very big advantage in terms of logistics and refueling. You can see the picture there. And as basic as it seems with people refilling a bucket, this is exactly what you have to do if you want simple logistics and being able to deliver anywhere in the world, green power at an affordable cost. The greenfield costs, we believe, will keep dropping. Hydrogen will become more and more affordable, and it will be converted to eMethanol and diesel cost will keep going up. So the goal of our solution is not simply to be a green solution and that fixed environmental agenda, but it also to be affordable in the areas of the world where it matters most, and that's Southeast Asia, that's Africa, Latin America, areas where you simply cannot dictate an environmental agenda unless the cost is also reasonable, okay? So we do aim by 2024 to have a system that is clearly in terms of total cost of ownership, CapEx, fuel and service, clearly lower cost than the current diesel generators. And as we reached that point, obviously, we will see the demand -- we expect demand to increase. We have started one of the big case studies we have in the Philippines, where we supporting 2 operators. And there, we have the full operation of 30 people that have done the whole cycle of service from sales proof of concept and total cost of ownership to system installation remote monitoring, repair and maintenance, fuel supply delivery and logistics. And we have done this in Philippines for the -- where we deployed hundreds of towers because we wanted to have one landmark case where we have done everything end to end, and we have excellent understanding of all the operations problems we might how and how to processes -- what processes you need to have and how to improve the product as well. This team is not something that we plan to replicate in every country. It's mostly team that will boost future countries and big installations, primarily close Asia, but also other parts of the world. And this is very important because I'm going to talk about right now, our model will be switching to channel partners from direct sales. So obviously, in the beginning, we were the only ones that -- when the product was at the low volume stage, we were the only ones that could support it and the only ones that could market did, and we had the exchange service. But our strategy in the goal this year is to work with framework agreements through channel partners, and channel partners are either tower companies that have thousands of towers and are consolidating towers from different operators around the world. So we want to have framework agreements with them. And as I said before, they don't care only about the green agenda but also about the total cost of on ownership primarily. And this is our strategy and also OEMs that are used to and do manufacture and have a network of distributing diesel generators. And we want to approach them in order to provide private label version of our fuel cell, which they can bring to the market under their own name. We will talk later about how we create -- how we generate revenue in this scenario. Right now, we have about 1,000 systems deployed. We monitor them remotely, and we know what they're doing at any time. We have a target to bring 2,000 -- about 2,000 new systems in the market in the next 18 months. And we have a good pipeline of about 17,000 towers in -- remember that the market is more than 1 million towers. We have a good pipeline of 17,000 towers in -- with different tower costs in telecoms around the world. So direct sales, if you look at 5,000 systems times 20 kilowatts, you're looking at the 100-megawatt opportunity. And you could expect -- I'm talking about the system-level revenue of thousands, low thousands. I don't want to give an exact number here, but low thousands of dollars per kilowatt. It is -- you have to do the full manufacturing and everything. So it's slightly -- gross margin-wise, it's lower, CapEx and OpEx are higher than working through channel partners. With channel partners, you can easily talk about much bigger volumes, let's say, 50,000 down the line, which will create a 10x opportunity. And the revenue would be smaller, would be in the hundreds of kilowatts -- hundreds of dollars per kilowatt, because primarily there, we'll be charging for the MEA and for a licensing fee for the private label version, right, or there will be a reselling fee by tower costs, et cetera. But the gross margin will be higher, and we do expect the CapEx and OpEx to be lower. So we definitely need to expand that channel partner model, and that is what we're doing. So that's the first area of stationary power systems. We have focused a lot in telecoms because it's an immediate opportunity, immediate market. But obviously, we see a lot more market needs these days in terms of bigger systems required for power generation and also for combined heat and power. The next area, which we have systems expertise and we have products that can enter the market very soon or have already entered the market is the area of portable power systems. And again, these are human portable or lightweight power systems that are used for critical infrastructure support like supporting network in the middle of nowhere or the Canadian forest, let's say, or for surveillance or in one of our examples for defense. And one of the very interesting examples we are bringing to the market, and we are in a joint development program with the U.S. Department of Defense is the Honey Badger, on-the-move battery charging and power generation. This is becoming a big need for many military operations around the world. More and more soldiers have to communicate for a variety of needs, have a variety of needs in the field of operations. They need to communicate with drones, with satellites with themselves. And they do require power on the move. And it used to be that only a few of them would require that, now almost everybody seems to be required in power in the field, especially if the U.S. Army brings forward their IVAS, augmented reality program, which would put -- this will create a big need for everybody operating on the field to have power on the move. Of course, you can do it with batteries, but batteries on the average mission, there will be 6x more -- they will have 6x the weight. And depending on the mission, it would have up to 25x effect in reducing the weight versus batteries by using our fuel cell. And this is designed -- the fuel cell that is designed and has passed already a lot of military tests. We do expect that if it's successful, it will have first production in 2023 and '24, moving into mass production in 2025. Again, we do expect to have a partner strategy. We're not a defense company, we're not a company that can deal with selling to defense departments around the world directly. We will have the partners to be able to sell and support the product. One of the major advantages of this product is that it uses again, a methanol water mix. So it's actually a windshield washer fluid that the U.S. military has already, and that makes the logistics super simple. You can see that our multi-fuel strategy is really translating. We just gave 2 examples here with telecom towers and defense. It's translating into applications that can be deployed at high volume today without waiting for different fuels and hydrogen to be available everywhere in the world, which first, I don't think it's going to happen for these applications, and it doesn't need to happen because eMethanol will simply be the same as hydrogen. It's hydrogen carrier. Another example, also the same is -- that is also used in methanol is the Canadian oil and gas market. They have to put remote power that operates yearlong in the middle of winter in the Canadian forest controlling -- supporting -- giving power to the control systems there so they can electronically controller methane emissions. This is a big problem. And the change in all the methane emissions control program there, and it's going to have a massive effect in terms of reducing equivalent carbon dioxide emissions. There is a lot of pulse to replace all these systems. It is an application that is less, but it has, we do believe, great value, and we are partnering there with Calscan, a leader in the market, working with the sales force to bring the product exactly where it is needed most. Again, it is fueled by methanol, which is already available at the well site. So that results any other problem you might have with deploying the system. So in the area of portable systems, we started with defense. Usually, many things have started in the past in the area of innovation from defense, receiving development funds, which are in the low millions between 2022 and -- 2020, 2023. And as I said, after that, we expect to be in mass production. But there are a lot more applications that are of extreme interest. Their applications in terms of that require power remotely in terms of drones, firefighting drones, agriculture, robotics, augmented reality, which is going to be a great opportunity. And we do see a lot of applications where the technology will move away from defense and into mission-critical applications that are high margin and uniquely differentiated in these markets. So this is an area where we pay a lot of attention because we believe our products are uniquely positioned -- the HT-PEM technology is uniquely positioned to bring results. Now let's move to mobility. Mobility is obviously when people talk about fuel cells and hydrogen, the first thing they start discussing is cars and trucks, et cetera. Mobility is a big -- a much bigger area. Of course, we believe that fuel cells are ideal for heavy-duty mobility, for aviation and marine. And I'm going to discuss a bit how we intend to approach this market. So in mobility, what do we have right now? Okay. We have our Advent MEA, which is a differentiator because it's a high-temperature MEA, and many of the companies in the mobility field know very well that they need a high-temperature products to be able to have efficient operation. And we also have the next generation of fuel cell developed with -- it's called the DIGI-TRONIC architecture. And this fuel cell is how we intend to approach the mobility market with the targets being, as I said, again, heavy-duty automotive, aviation, marine and trains. What is the initial feedback from the market? In terms of the trucks and aviation, we clearly hear and see that unique, high-temperature, because of the heat rejection and removal issue. It's very hard to do heat rejection with a fuel cell that operates at below 100 degrees. Let's say, you're in India, you're in Arizona, you would need a huge radiator to be able to exchange heat efficiently. When it comes to aviation, that will make flight simply impossible. The heat rejection is a much bigger problem. So these areas, the companies that do have experience in the field that have fuel cells for years do understand exactly why HT-PEM is a technology that can bring the difference. And we obviously are in discussions with many of them for bringing the product to market. So key rejection together, obviously, was operating more and more into extreme environments in the world that it's getting hotter and hotter every day, it's a very important problem. In the area of marine, we see clearly, and we have heard the announcements from top companies that methanol or ammonia are going to be the hydrogen carriers that will be used if we actually want to have carbon-free shipping by 2050. And therefore, our big advantage there is that we can directly use a fuel like methanol, which we believe is a very practical fuel. It doesn't -- cannot create a spill. It is safe, and it's going to be a fuel that is gaining a lot more interest. We start, of course, with smaller applications like auxiliary power, like river boats, et cetera, and then move to bigger and bigger. We're talking also with companies there that are manufacturing the engines of the past and want to manufacture the engines of the future. And the same is true also for locomotive. There was a big push in Europe to change a lot of them to natural gas until a few months ago. Obviously, natural gas is out of favor now and they're looking to green fuels. So what is our approach in this market? Obviously, we're not an aviation or marine or truck company. We cannot just keep bringing different applications in the market that we develop with our own recent and development funds that would be infeasible. What we do have is we have the innovative technology like the MEA and the fuel cell technology. And what we want to do is have strategic partnerships with certain companies. We can call them joint development agreements, we can call them JVs, we can call them strategic partnerships depending on the situation. Where they have a development phase in which with use of the architecture, the DIGI-TRONIC architecture and MEA to develop a system with them that is specific for a particular market need. And after this phase in which we're primarily in engineering phase, we moved to the second phase where we provide the manufacturing know-how to answer to them. We don't want to manufacture everything for the whole world. That's impossible, right? You do expect and you -- it is a clear need that all of them, whether it's automotive companies or aviation, et cetera, they do want to manufacture locally. That is a mandate for them. And this is exactly the model that we try to support and provide, right? So we will be providing the MEA, and we will be licensing the technology. When it moves to production, they will have, obviously, the ability to manufacture whatever they want, wherever they want and also, of course, to market the product and bring it to the market that's there. And we do -- we have seen this slide before. If you have followed Advent, this is how -- we expect our revenue and [indiscernible] revenue to grow under this model with joint development agreements. We have already announced that Hyundai is on the first phase, which is a technology assessment, where they're evaluating the technology. And that is also an equally big automaker that is in the same technology assessment phase. And there are many discussions also with world leading conglomerates from automotive valuation in marine, proposals exchanged and discussions, and there's a lot of interest. A lot of these companies have tens of millions or even hundreds of millions of revenue -- billion, I'm sorry, billions of revenue per year. And they are -- they seem to be extremely interested in the technology, and these are the relationships we want to forge. In terms of the growth strategy, of course, you can see, Advent, based on everything I said, is an innovation and enabler company that brings HT-PEM technology to the mass market through strategic partnerships with world leaders in the mobility and power generation markets. The company will invest in innovation and manufacturing in the areas of MEAs and fuel cell technology where we can achieve high differentiation and market impact. We try to do what is differentiating, not trying to do what is... In terms of one of the key -- how do we translate innovation to competitive advantage is what you see here, right? You see that after 2023 and as we get into 2024, the new MEA we have developed with U.S. Department of Energy and Los Alamos and other laboratories will get into the market. That will make 2x to 3x power density improvement and the 5x lifetime. All these directly translate to reducing the total cost of ownership. Smaller systems, easier to make systems, systems that last months longer, all of this translates into a lower cost of producing a kilowatt hour. The graph, of course, is going to change for every application. It's not a universal graph, rather indicative, right? And every application has different costs associated with fuel and service, et cetera and different priorities. But as we approach 2024, you're not -- we're not simply selling a solution that is green, but we bring to the market is a solution that is going to be cheaper. And there is where you have an inflection point and where we see demand, especially if we work with the right partners, skyrocketing. In terms of people, we have a senior team of Vice Presidents, the most of them -- or all of them actually have come from the fuel cell industry. They're working on the strategic joint development agreements and OEM deals. And around the world, some focused in Asia, some focused in Middle East and Africa, by region, et cetera. There's also a dedicated sales force for the Serene telecom stationary systems and for the portable systems, which these systems are ready to enter the market and there we need to direct sales force as well. And obviously, in terms of strategic business development, our partnerships with U.S. Department of Energy, U.S. Department of Defense, and EU institutions are extremely important for growth. Thanks to the 2022 outlook. We do expect the majority of sales in Q3 and Q4. It will depend massively on the speed of the execution of framework agreements with telecom operators and how this one or two of them will affect the overall picture of the year. When we talk about joint development agreements and this kicking in, the revenue will be in the form of development phase and the engineering phase in the beginning rather than licensing. Licensing follows development. We do sell MEAs right now to third parties, but this is just smaller part of the revenue. And finally, we do expect support from R&D and government grants as part of the EUR 23 million revenue and grant target that we have for the year. So in summary, this is the our business development and growth strategy. We're looking forward to executing focusing a lot on innovation and differentiation to bring Advent's [indiscernible] technology to the markets that need it most in power generation and mobility. Thank you very much, and we will now proceed with the rest of the presentations. Thank you.

Thank you, Chris. We'll now have a short break. During the break, please enjoy this video showing 1 of our serene fuel cell systems operating in the Philippines. [Break]

Welcome back. Now please join me in welcoming Mr. Jorgo Chatzimarkakis, Hydrogen Europe's CEO, who will be sharing a brief update on the hydrogen developments in Europe.

Dear friends, at Advent Technologies. The hydrogen economy is not stoppable. We human beams, we sometimes need external shocks in order to change our habits and it was the Russian invasion into Ukraine, which gave the final big push into rethinking old concepts or to just accelerate what was on its way anyhow. Hydrogen has become center in core of the energy transition as of 2020 when the European Commission based on very cheap renewable energy prices and also based on the threat of COVID put together knowledge, but also some courage to draft the hydrogen strategy that was published in July 2020. Only 1 year later, a lot of legal basic ideas have been presented by the same commission now discussed in the European Parliament and in the council with some of them already being issued in autumn this year. And then we saw the hydrogen package, which has been presented in December last year. And now the accelerator, the hydrogen accelerator as part of REPowerEU, the answer of the Europeans to the war in Ukraine. But all these legal proposals or the money that will be put also public money that will be put in these projects will not help if we don't have companies that are front runners. Creative people who do investments to private investments, do things that are a little bit out of the box, Advent technologies is one of these companies is the front runner in many, many fields. It plays a role among our membership in Hydrogen Europe, we now have nearly 400 members, and we are honored and pleased to have Advent technologies as a part of Hydrogen Europe, of this hydrogen family. Your company plays an important role in Greece, but also in Denmark and in general, in Europe, we know that some of your projects will be -- also we'll get some public funding in the near future, and we are happy to see this flourishing. And I can promise that Hydrogen Europe will do its utmost to fulfill this to support you in being one of the catalysts of, what we would say, the hydrogen economy, which absolutely cannot be stopped anymore. Thanks very much for the honor to invite me and to give me the possibility to address you, I wish you absolutely the best for the next days, weeks, months and years. Thanks very much indeed.

Thank you, Mr. Chatzimarkakis, the valuable insights you shared with us and for being part of Advent's first Investor Day. It's an honor to have you here with us today. Our next presenter is Dr. Nora Gourdoupi. Advent Senior Vice President of Corporate Business Development. Nora joined Advent Technologies in 2006 as a senior scientist and is a co-inventor of 18 patents. Nora will deliver an insightful presentation on Advent's Green HiPo project, which is aimed at producing innovative HT-PEM fuel cells and electrolyzers to decarbonize global power production via hydrogen. Nora?

Thank you, Jim. I'm very happy to be here with you today. So let's talk about Green HiPo. Green HiPo is an important project of common European interest also known as IPCEI Hydrogen Technology. IPCEI is a new initiative to achieve EU climate targets, maintain the competitiveness for [ EU ] industry and enhance EU energy autonomy. REPowerEU is a complementary to IPCEI EU initiative, which has been recently announced. REPowerEU as at reducing Russian gas demand, boosting resilience and decarbonization and calls for a hydrogen acceleration. Greater target is to produce 10 million tons of hydrogen by 2030, which corresponds to approximately 400 gigawatt electrolyzer capacity. Advent Green HiPo will help EU to accomplish these goals. [ To reach ] an innovative and complete hydrogen value chain approach. Green HiPo scope is to establish R&D and production line facilities for innovative development and manufacture of high-temperature PEM fuel cells and electrolyzers system. These would subsequently be used for the production of power and green hydrogen, respectively. The facilities will be located in Western Macedonia, Greece. Green HiPo, in collaboration with strategic partners is expected to produce electrolyzers of a total capacity of around 1.5 gigawatt over a period of 6 years. The green hydrogen produced by the electrolyzers will help towards the carbonization of several industrial activities, such as steel and chemical industries, better chemicals and transport. In Greece and beyond, the market potential is really big. According to estimations by market experts, there is over 1 to 100 ratio between production of electrolyzers and market demand. The production of green hydrogen is strongly related to the availability of renewable sources, a significant opportunity costs from the coupling of electrolyzers with solar photovoltaics. It is anticipated as shown in this graph that the global installed capacity of solar PVs could rise up to 3,000 gigawatts by 2030 and reached even 8,500 gigawatts by 2050. With respect to fuel cells, through Green HiPo, Advent will produce innovative, high-temperature PEM fuel cells for stationary and mobility markets. A total power of 120 megawatts is expected to be produced within a period of 6 years. [ Hydro ] fuel cells is very broad. The high-temperature PEM fuel cells is expected to have a significant share in heavy duty transport, marine and stationary applications because of the competitive advantage over alternative fuel cell technologies. That's it from my side. I would like to thank you very much for your time and attention.

Thank you, Nora. For our next presentation, I'd like to welcome Naiem Hussain, Advent's Chief Investment Officer. Naiem joined us in 2021 and has valuable experience in corporate finance activities such as IPOs, fundraising and M&A across a wide spectrum of energy companies. He commenced his career at ICI, where he was involved in Investor Relations and Corporate Planning. He subsequently joined the Investment Bank Close Brothers and was also Head of Investment at Imperial Innovations for a number of years. Naiem will deliver a presentation on the market potential for Green HiPo.

Thank you for the introduction. I am Naiem Hussain and the purpose of my presentation is to give you an insight of the market potential of Green HiPo. Now I've been received notification from the Greek state on 16 June for funding under IPCEI. This notification has been sent from the Greek state to the EU and EU application is expected this month in July. EU application will clear the way for [ stay ] and therefore, funding will be made available over 6 years in accordance with the schedule that we've already provided. Green HiPo is, therefore, an important project of common European interest and has been endorsed by the Greek state and the EU. On my next slide. Green HiPo involves the innovative development and production of fuel cell and electrolyzer systems and will be based in Western Macedonia in Greece. These systems will be subsequently sold through long-term supply arrangements. The target market for fuel cell systems will be predominantly CHP and automotive. And for electrolyzers, local photovoltaic complexes are already interested in green hydrogen production. Now even based on the most conservative estimates for systems output and pricing, the sales potential for Green HiPo is very significant. On my next slide. This gives an overview of the largest hydrogen projects globally. And in summary, the global Hydrogen projects are extremely significant. Now Greece has the potential to be a key producer of green hydrogen owing to its abundance [indiscernible] light and from the forthcoming locally produced electrolyzers from Green HiPo. Turning to my final slide. This summarizes the value for hydrogen across its value chain and the production segment alone, which is a blue column on the left, is of the order of tens of billions of dollars. From the diagram on the right, the EU is leading the way for funding globally and is pushing ahead with additional programs and incentives such as REPowerEU. The progression of Green HiPo will be accelerated by virtue of the IPCEI support from the Greek state and the EU. Green HiPo will be successful and we look forward to you joining us in this journey. We also look forward to updating you over time as we achieve our milestones. Thank you very much.

Thank you, Naiem. At Advent, we recognize that the clean energy challenge is too big to be addressed by any single company. We partner with the world's greatest companies aiming to couple our advanced electrochemistry and engineering expertise with a global scale of operations and manufacturing footprint. For the next few minutes, please take a moment to see a video submitted by High Power one of Advent's customers, highlighting how through joining forces, we significantly impact global decarbonization efforts today. [Presentation]

And now I'd like to interrupt my role as moderator and as Chief Operating Officer and General Counsel for the company, I'd like to provide you with an update on Advent's approach to operations, excellence and ESG. Hydrogen and fuel cell markets are booming worldwide. More than $38 billion is expected to be invested annually in hydrogen and fuel cell technologies between 2020 and 2040. Between $1 trillion and $1.4 trillion in investment is necessary by 2040 in order to meet the decarbonization commitments that various countries have committed to. At Advent, we try to address the 3 Es on a global scale, energy security, the economy and the environment. Our strategy is that through innovation and a focus on lowering the total cost of ownership, we can achieve HT-PEM superiority and curb non-OECD emissions. You can see by the graph that OECD countries are leading the way in terms of CO2 emissions abatement from energy use. OECD stands for the Organization for Economic Cooperation and Development. It consists of 38 member nations in Europe, the Americas and the Pacific. The members and their key partners represent 80% of world trade. In terms of operational excellence, Advent operates globally as one company. Senior management at Advent travels regularly to all of our locations across the world. The company has established a task force on operational excellence, to continue to improve streamlining operations, communications and promote value creation company-wide. Our headquarters is in Boston, Massachusetts where we maintain our executive offices. We're very proud to say that we'll soon also be opening a state-of-the-art research and development and manufacturing facility in Charlestown, Massachusetts. There, we'll focus on our one-of-a-kind ion pair technology. Our portable fuel cell solution center in Livermore, California, is where we work on the Honey Badger. The 50-watt wearable fuel cell. We have a production and stack assembly plant in Achern, Germany. Our plant is efficient innovative and utilizes all of the latest manufacturing technology to build our fuel cell stacks. Our Aalborg, Denmark Solutions and Development Center focuses on innovation. And it's the home to our robust 5-kilowatt SereneU fuel cell unit, which we're very proud to sell worldwide and with a special focus on the telecom market. We have 2 locations in Greece, one in Athens where our European corporate offices are and another in Patras Greece, where our polymer and ion-pair laboratories are posted. Finally, we have a regional sales center in Manila, which serves the Philippines and Southeast Asia. Our partnering and marketing approach has been to, number one, focus on what we do best, technology and product development. Number two, build business on proven technology and industry experience. Number three, collaborate with like-minded partners. And number four, provide world-class solutions to our customers. As you can see, our fuel cell is fuel flexible. This is what sets us apart from the competition. It can operate using any of the fuels that are shown here on the slide. We consider our fuel cell technology to be far superior to that of our competition, and we lead the way in HT-PEM. Advent's fuel cell value proposition is set forth in this slide. We reduced CO2 emissions. We reduced noise compared to diesel generators, certainly, we reduced sulfur dioxide and nitrogen oxide gases, black carbon and other pollutants and harmful emissions. Our technology is easy to use. It's low maintenance, and we strive to continually lower the total cost of ownership and increase return on investment. Our technology is versatile and it has many applications. Lastly, it runs off of hydrogen carrying fuels such as methanol, ammonia and e-fuels. We're very proud of the strategic collaborations that we've established. You'll see that we partnered with the Department of Energy in the L’Innovator program. This is a program with the Los Alamos National Labs, NREL, Brookhaven Labs, and what we're trying to do is work on the commercialization of next-generation HT-PEM technologies. We were selected from a variety of folks who sought to compete for this program, and we were the company that was chosen ultimately to partner with the DOE here. We're also working with RPE to develop next-generation fuel cells for the automotive industry. I mentioned Honey Badger earlier. We're partnered with the United States Department of Defense, for the Honey Badger 50-watt Reformed Methanol Wearable Fuel Cell. This is a power system for soldiers. And lastly, we're working with Northeastern University on MEA development [indiscernible] electrolyzers for green hydrogen production. Advent has adopted a supply chain value creation approach. We work with partners who are environmentally and socially responsible. We work with local suppliers and contractors whenever it's feasible. Two key partnerships have resulted as a result of these efforts. One is with BASF and the other one is with De Nora. These 2 key partnerships help us source key components for our future scale up in production. As you'll see in the next slide, we're members of various recognized fuel cell, hydrogen industry and other community organizations. And also since 2017, Advent Technologies, A/S in Denmark has been ISO 9001 certified, which we are proud of. We're scaling up our manufacturing capabilities right now. Soon in the late fall of 2022, Hood Park will become operational in Charlestown, Massachusetts. Hood Park is a 21,000 square foot manufacturing and R&D facility. It has a state-of-the-art robotics technology that will help us scale up and meet increasing global demand for fuel cells rapidly. Also, in Patras, Greece, we have upgraded our facilities to produce the necessary materials for our MEAs. Patras will enable Advent to soon support the production of nearly 1 megawatts of power per month. As you see here, we published our first ESG report in April of 2022, and we're proud of that. We're proud of that because that was the first year as a public company. And to be able to do that and be in the clean energy space and be able to participate in that way, was very meaningful to us. We intend to do so each year. Our approach to sustainability is to work towards reducing our carbon footprint by using HT-PEM fuel cell technologies. We recapture and recycle old fuel cells, and we hope to become more sustainable by meeting our sustainability goals each and every year. We hope to achieve energy savings company-wide. We realized these savings whenever and however possible, and we deliver electricity back to the grid and we rely on green electricity whenever possible. Our Boston headquarter facility at 200 Clarendon Street, the building has a gold level LEED certification. And currently, I believe, we are at gold level WELL certification in Boston, hoping to achieve platinum-level status very soon. In terms of recycling and waste disposal, we recycle all of our hazardous and nonhazardous waste at each and every one of our locations. This next slide I'm very proud of. In terms of human resources, we only rely and hire the best and brightest and hardest working people. We foster a esprit de corps in our Advent team. We have 40 employees in the United States, 61 employees in Denmark, 18 employees in Germany, 38 employees in Greece, and 26 employees in the Philippines. We have a total of 183 employees globally, and we are looking to make sure that each and every one of our employees is happy in their work environment and committed to achieving the highest level of standards possible. We train and develop our employees as well. Using training and development programs. We offer these programs in a variety of areas. These include professional skill development, human rights, ethics training, and health and safety training. We're also proud of the fact that we cooperate with local academia and research institutions for our internship programs. Right now, we have interns from the University of Patras, the University of [ RENs ], University of Bern, New England School of Law and the Massachusetts Institute of Technology. These interns help us each and every day and add tremendous value to the team that we've built at Advent. Advent is actively involved in the communities where we operate. We look to support our local economies and create employment opportunities for people. We also are actively engaged as community participants. In terms of governance and business ethics, we adhere to a strict code of business conduct and ethics with no exceptions. We maintain a whistle blower and a complaint policy, and we investigate any claim that is made. We also have an insider trading policy, the anti-fraud policy and a related person's transaction policy. These policies are reviewed and updated periodically. In sum, Advent aims to provide clean energy on a global scale. Our fuel cells can fulfill the global need right now for low-cost clean fuel solutions using infrastructure that is in place right now. We're working with governments and some of the world's greatest companies using our advanced electrochemistry and engineering expertise with a global scale of operations and manufacturing footprint. Finally, Advent is forward-looking, and we put ESG at the center of our corporate strategy. We're extremely proud of that. We look to serve as an example to other companies as we scale to decarbonize the world. We thank you for your attendance today and I'd now like to turn things over to Kevin Brackman, our CFO. Kevin is an experienced CFO. He has experience in global finance and accounting with proven success in driving financial strategy and multibillion dollar publicly held corporations. From 2018 to 2020, Kevin was Executive Vice President and CFO for Myers Industries, Inc. And now I'd like to turn the floor over to Kevin and let him talk about finance issues. Thank you.

Thank you, Jim, and good morning, everyone. Today, I will review Advent's financial outlook as well as discuss some of the significant growth opportunities we see for our business in the coming months and years. Let me start with a current overview of our business model. This slide shows a breakdown of our current revenue between various revenue streams. So the left side of the pie chart or roughly half of our revenue is systems revenue. And the majority of our systems revenue today are stationary units that provide backup power for telecom tower sites in the Philippines. The right side of the pie chart is the other half of our revenue, and it consists of MEAs and other fuel cell components. Engineering and licenses as well as joint development agreements. As Emory discussed early in the presentation, the MEA is that's really the heart of the fuel cell. And we believe our high-temperature PEM technology is some of the best technology in the hydrogen fuel cell space. I want to move to the next slide where I want to discuss some of the growth opportunities that we see across these various revenue streams. So starting with the left side of the pie chart, the systems revenue, we really see 2 significant growth opportunities here. Number one is with the stationary fuel cell systems that I mentioned. Again, currently, we sell them to provide backup power for telecom tower sites in the Philippines. We sell to a limited number of customers in the Philippines. So we really see a tremendous opportunity to expand our reach both geographically and with new customers across the globe in this area. The second opportunity within systems is electrolyzers, electrolyzers that we're going to develop and manufacture under the Green HiPo project. We do not have revenue from electrolyzers today. So this is -- and I'll provide more detail later, but this is the source of another significant growth opportunity for us within systems. On the right side of the chart, we also have a couple of opportunities that we're really excited about. So MEAs, we are working with the Department of Energy currently to develop the next-generation MEA, which we think will significantly reduce the total cost of ownership and increased demand for MEAs. In addition to that, with both MEAs and licensing fees, we have an opportunity to enter end markets that we don't sell to today or we have a small amount of revenue to today. So I'm talking about mobility, heavy-duty trucks, aviation, marine, as Vassilios mentioned before, aviation may be further into the future, but mobility is an opportunity that's near term. We're really excited about it and we think it could be really significant for our business. And then joint development agreements is the final piece, and I'll move to the next slide to discuss the joint development agreements. So I think as we all recognize, the engines, the fuels that are used today, it's going to change dramatically over the coming years. And it is our belief that many OEMs to innovate in-house and develop the technology in-house will be cost prohibitive for them. And that's where Advent, we think, have we have a great opportunity to partner with these OEMs. We have the technology. We have the know-how with fuel cells with hydrogen and so we can provide that to these OEMs. And in turn, they can provide us with capital support for manufacturing capacities that can provide us with access to new markets. And so I think there's a tremendous opportunity for joint development agreements with large global OEMs. So in summary, on the next slide, really, as I mentioned, 4 or 5 different really significant growth opportunities for us with the -- expanding the geographic reach new customers with the stationary units, the joint development agreements with large global OEMs, the revenue that will come from electrolyzers and the fuel cells that we develop and manufacture under the Green HiPo project these are all and then entering new markets that we're not in today, like mobility, marine, aviation, these are all really significant growth opportunities that we're excited about. So let me turn now to financial metrics that what we see as the outlook for our business longer term. So starting with revenue. I should mention that our P&L guidance for 2022 until we have a more significant revenue base, we decided against providing margin and EBITDA guidance. And so we stuck with a revenue outlook. And so to be consistent with that and since really our -- a big part of our focus over the coming months and years will be on commercial execution as well as technology and product development. We're just going to provide a revenue outlook, a longer-term revenue outlook today. And we're not going to provide anything on EBITDA or margins. So in terms of revenue, we are targeting $300 million of revenue in 2025. And this slide gives some of the details why we believe we have a path to deliver the $300 million. And so many of the opportunities that I've discussed, as Chris mentioned, in stationery, there's 1.2 million telecom towers globally that require backup power. So that's -- if you do the math, that's even a small fraction of that market could be a significant opportunity for us. Mobility, aviation, same thing. Again, mobility is probably a little closer in than aviation, but we think that could be a significant opportunity. The electrolyzers and fuel cells under the Green HiPo as we show on this slide. $650 million of revenue over the next 6 years, so just over $100 million per year. Naturally, there will probably be a ramp-up period so maybe in 2025, we're still below $100 million in revenue under the green HiPo program, but still another source of significant revenue in 2025. So when you do the math and add it all up, we firmly believe that there's a path to achieve and deliver the $300 million of revenue in 2025. Turning now to the balance sheet. We finished the first quarter of this year with just under $60 million of cash on the balance sheet. I should know then in terms of cash flow this year, we spent approximately $5 million in the first half of 2022 to build out our hood park R&D and manufacturing facility is just outside of Boston. And we expect to receive the majority of that $5 million back in the second half of the year via tenant improvement allowances. So you'll see a pretty significant swing in cash flow between the first half and the second half. So I did want to point that out so that nobody uses our first half cash flow and projects it moving forward. We have no debt on the balance sheet. We -- currently, if you exclude that Hood Park impact that I just talked about, and you assume no margin from revenue. Currently so we essentially cash for SG&A, R&D costs, working capital. Currently, we're spending around $11 million per quarter. It's a little bit higher than that in the first quarter of the year because you have certain annual payments that are made in the first quarter such as insurance renewals and then a little lower than that in the final 3 quarters of the year. But on average, about $11 million per quarter of cash that is used for SG&A, R&D and working capital, we are targeting a 20% reduction in that. So we'll -- we're currently assessing opportunities to reduce cost and reduce spending and we look forward to updating you as we finalize plans on that, but we're targeting reduction to the $11 million per quarter spend that we currently have. And then finally, as we've talked about before, the Green HiPo funding, a huge win for us, EUR 782 million over the course of 6 years. Over EUR 35 million in year 1. And so obviously, that's a really big win for us. I think that project really just demonstrates the support that there is for green energy solutions across the globe. It also demonstrates the confidence in Advent's technology to be able to deliver on a project of that magnitude. And finally, let me wrap up with a slide about our stock valuation. And so I think we all know. There's a tremendous growth opportunity across the entire hydrogen fuel cell industry. And this slide we show our revenue multiples based on the current trading price of the stock based on our $23 million of revenue guidance in 2022 and the $300 million revenue target that we have set for 2025. And as you can see, again, great growth opportunity across the entire industry. We believe we have superior technology. We feel we have a strong pipeline of opportunities. And you can see it on the slide that currently, we have some of the lowest revenue multiples, if not the lowest revenue multiples in the industry based on our revenue targets. And so just wanted to include this slide to demonstrate what we think the value is in our stock. And so that concludes my presentation for today. And with that, I will turn it back over to Jim.

Thank you. Thank you, Kevin, and for everyone's attention. We've now concluded the presentations portion of the event, and we'll move on to the Q&A session. We try to get as many questions as possible. And if we're unable to respond to your question during the event, rest assured that we will follow up with an e-mail in the days that follow.

First question is from Adam Forsyth at Longspur. The question is, will you retain facilities at Patras and Western Macedonia? Or will you consolidate on the new site? Are Hood Park and other sites now fully staffed? How difficult has it been to find the right skills mix, Will staffing in Western Macedonia create any challenges. Vassilios, could you respond to that?

Thank you very much for your question. The immediate expected state-of-the-art facilities, the facility at Hood Park, which we expect for this to be operational in November already, we had people in rented facilities here in Boston. So there will be a transformation there. Now regarding the Western Macedonia, as you can imagine, this is a massive project. We hope to start there as soon as possible after we sign the documentation and we'll go to the next phase. And the deal there is, of course, we'll try to consolidate most of our expertise, facilities, know-how there. I don't think we're going to have a problem with staffing because the particular region there, it's an industrial region. They had lignite plants for [indiscernible]. So there's a lot of good personnel. There is a university, a relatively modern university, so we can have a lot of recruitment from the university. That's very important to me and our university to be close to your production facilities. So in cities that there is a lot of young educated people. Plus it's very close also to the second major city in Greece, which is Thessaloniki, beautiful place also to be. So I don't think we're going to have any problems with bringing top-level talent in that part of the world.

Thank you, Vassilios. The next question is from an analyst at Fearnleys. Concerning our agreement with Hyundai, how is it structured? What incentives does Hyundai have to support Advent? And what is your aim with the agreement? Great question. Chris, could you please respond?

Thank you for the question, Jim. Hyundai and also another world-leading manufacturer, they're both in the technology assessment phase. They are currently assessing primarily the high temperature PEM MEA. And based on the results, they may proceed to the next phase where there will be -- we expect to have some strategic collaboration that we intend to. It is our intent to have strategic collaborations in each sector with world-class manufacturer, and there are talks also with large corporations in aerospace, marine and large-scale power generation as well. In our opinion, the incentive for these companies is that Advent has a uniquely differentiating technology. If you want a track to operate in India or in [ AP ] on an airplane or in a cruise ship, for example, you have a much better chance with a HT-PEM for all the regions we described before. We furthermore have the know-how to make HT-PEM fuel cell systems. And we're willing to provide that know-how to the right strategic partners. These companies primarily want to produce the fuel cell system themselves locally -- and this is exactly what we offer. They will scale up manufacturing, we make money on the MEA and license. It is a win-win for both companies. And -- you see, we are not an automotive company. They're not electrochemistry so I think it's -- we're looking for the right partnerships and hands, as I said, the company that is already in the technology assessment phase.

Thanks, Chris. The next question comes from Fearnleys. With the current market backdrop, do you see any risk of a delayed rollout strategy? Great question. Kevin, would you please respond?

I think the market generally expects companies like Advent and other high-tech companies to return to the market to raise additional capital at some point. And obviously, this is not an ideal market to do that. Our situation is a little unique with the Green HiPo project. So under that project pending EU ratification, we will receive EUR 782 million of funding over the next 6 years, which will obviously fund our CapEx and R&D needs that includes over EUR 35 million in year 1 of the project. And so we through that project, we'll receive the funding that we need without having to dilute our stock without having to add leverage to our balance sheet. And so we're really excited about that. The other approach we're trying to take is we are pursuing joint development agreements with OEM partners, where we can provide and I talked about this in my presentation today, we can provide the technology solutions and in return, the OEM partner can provide capital support to us. And so those are the 2 approaches that we're taking. To financing in order to continue to execute on our strategy and grow the business in the coming years.

The next question is from an analyst at Fearnleys. It's the area of economics. What is your sales price, gross margins and CapEx estimates per megawatt. Excellent question. Chris, could you please respond to that?

Referring to sale of systems, the sales price per kilowatt varies depending on the application. High-volume automotive deal will demand a lower price than it is drone or defense application, for example. And also, it is not solely dependent on the stock price. You have to look also on the total cost of ownership. What is the cost of fuel, lifetime resilience and service requirements, all affect the cost and therefore, the effective price you can charge in demand for a certain application. The MEAs have more of a standard size, I would say, regardless of application, but depending on volume, of course, and maturity of the MEA. And we expect the price to drop and our margins to increase as we scale our production in Hood Park, USA and potentially in Western Macedonia.

Thank you, Chris. The next question is from Panmure Gordon. What is the next milestone in the development for larger stacks for heavy-duty applications? And when should we expect first sales. Good question. Emory, would you like to take a step at that?