Splitwaters’ Post

Transcript

Hello, this is Steve. I'm back with Deepak Baba of Split Waters in the United States. Deepak, please say hello and maybe I'll be able to ask a few questions after that. Hi, everybody. I'm Deepak Bala, CEO of Speak Waters. Thank you, Deepak. I've been reading a lot in the United States recently about, you know, how the IRA and the and the, is it the 45 or the V45 or whatever, it's all coming down to land and what that means for hydrogen, green hydrogen projects and the cost of making green hydrogen. Tell me, tell me your take on this, please. Yeah, sure. So 45 is a great deal to support the green hydrogen production in the United States. And I think UH, with the hourly matching, specially it increases the OpEx of the green hydrogen and which pushes back the green hydrogen project. So what we need to do is basically decrease the CapEx of the green hydrogen plant and we have to have the electrolyzers who can meet with the variable power demand. Right. And split waters provide that kind of solution, OK. So I mean if we've got low CapEx equipment, then clearly that's going to bring down the cost of hydrogen in general. If it's intermittent operation, then it might not be 100% utilized or low CapEx is also important for a second reason. And again, this whole hourly matching variable alignment, the electrolyzer needs to be flexible. I mean you said you had solutions, Deepak, but break it down a little bit. Tell us, tell us how you can help. So what we have done is we have improvised the alkaline electrolyzers with our vendors. We have already uh I mean made build say more than 30 electrolyzer projects and these with our electrolyzer can go up to 10% of the total capacity. So turn down ratio is 10%. The other thing is we have to deal with the intermittent power. Uh, so that is one solution. The other thing which we have done is really important in the electrolyzer industry, the longevity of electrolyzers, the life of the electrolyzer stack. So the change is the improvements which we have made on the alkaline electrolyzers. It increases the life of the electrolyzer by 50%, which is a big deal because right now all the electrolyzers in the market have a lifespan of like 8 to 10 years. So we easily go beyond that. Like 12 to 15 years easily we can meet that kind of, uh standards. OK. So you've talked about going down to 10% of normal load for load following. You've talked about long stacked life, which means my maintenance, my replacement costs are reduced. What about that initial CapEx that that first number money people have got to put on the table, How are you helping them save their dollars there, Deepak? Yeah, that's one of the most important thing which we bring to the table. And as you know, split waters, we manufacture the electrolyzers. And we are the EPC for the green hydrogen projects. What we do is we put all the electrolyzers and the BOP equipment, balance of plant equipment on the modules and we provide this kind of modular solution where we reduce the stick built construction to 20% or say less than 20%. Now we remove all the coordination between the engineering company and the electrolyzer company and the construction company. So everything is happening under one roof. Sweetwaters is one stop shop for the green hydrogen. Needs and that's how we bring the CapEx down by 30% which is a big number in this industry. So we are bringing the CapEx down. We have the electrolyzer which can meet the intermittent power and it is a plug and play solution. The life of the electrolyzer is really longer than as compared to the current market. So that the solution we provide to the market, it sounds very compellingly like is there, is there any proof statement, have you sold one, are there any projects coming up? Yes, we have just announced A20 MW. Logic and again this is a phase one of this project and we are really excited about this because eventually in the phase two we're gonna put additional electrolyzers and we're gonna make E methanol and it is happening at the Gulf Coast of the United States and we have few more projects in the pipeline and you will see the press releases in coming weeks for sure. We are really, really excited that we are starting the spirit water journey to the bank and what about local content people? Sometimes. Wanna see a bit of local content in some of these US projects Is are these things being made in the States? Are being made in India? Tell me about your supply chain here please, Deepak. Yeah. So, uh, right now what we are doing is to bring the CapEx down, which is the need of the hydrogen industry. We are building a giga factory in India and. We are also planning to build a factory in Houston, TX where we'll be assembling all these modules and we'll be making the electrolyzers in US also in the future. So that is our plan like start with our first low cost or say high value fabrication center in India and then put another fabrication center here in Houston. And we we're going to meet all the demands of the DOE projects where they need to see the local content and all that and. You're gonna give them that kind of CapEx which they need. So this is exactly what we are doing for the clients. Fantastic. So you've gotta electrolyze it that can ramp down and follow renewable power. You've got a low CapEx cost solution. You've got significant local content to give you access to all of those do fundings. You've got access to the I'm going to get this wrong again 45V tax credits from your green hydrogen sounds like you're good to go Deepak. Quickly and we have, I mean we have to do this for our clients, right. We, we don't wanna cut any corners on the quality also and we are putting all these kind of instrumentation on these electrolyzers or the green hydrogen plants which are easily replaceable in United States. These are not specific to some country where you cannot order the replacement on all that. So we have thought about it and that's how we have designed it that everything should be replaceable and people or clients. Could not suffer if anything has to be replaced whether it is a pump or an instrument or something. So all these instruments are coming from top suppliers in Europe and US and we are maintaining that kind of quality plus we are giving that kind of CapEx plus we'll have field service technicians in the field to to meet any kind of need from any kind for any kind of service at the electrolyzer site. So that's that's how we are meeting. Uh, the green hydrogen industry requirements at the moment. So maintenance on the instrumentation electrical side of things. Your team are there and and ready to to to to turn the right, turn the right knobs and press the right buttons again. Things working again. Absolutely, because reputation is the big thing for us and uh we, I have been in this industry for over 20 years and UH my partners and all that everybody has been in this industry for a long, long time and we know that how to stick with the quality and that can get you all the repeated business from different clients. And green hydrogen industry is just kind of starting. It's very young and immature and we want to be part of this energy transition journey and we want to help the all the companies who want to switch to green. Nitrogen, That's a fantastic closing statement to end on. It's been a pleasure talking to you and I wish you success with your ambitions. Same here. See. Thank you. Thanks for having. Thanks. Bye, bye.