Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Michael Lew – Think Equity
Michael Lew – Think Equity
First congratulations on the order from POSCO, also I wanted to clarify, is the composition, is it all for megawatt-class or the 2.8 MW modules.
Daniel Brdar
Its all megawatt-class modules and megawatt module components.
Michael Lew – Think Equity
And also you’d mentioned the expanding relationship with POSCO which I expect includes penetration to the Asian markets, while its still a bit early could you characterize that opportunity.
Daniel Brdar
When we meet with POSCO, sort of understand where they see their business going, the opportunity that they see really is to take the Korean programs and use it as a base to deploy units, get people familiar with the product in the Asian marketplace and continue some cost reduction, but really where they want to go more broadly is the entire Asia region, which places like China, many of the parts of Asia are untapped markets for us.
And we think that POSCO represents a really good partner to go pursue those markets with in the long-term.
Michael Lew – Think Equity
Do you have like a size on that opportunity, while it is still early.
Daniel Brdar
Its still early. We’re seeing a pretty rapid change in terms of even the adoption within countries like China. If you look back a few years ago, it was just purely coal-fired power plants, now you’re starting to see them move towards adopting some green solutions as well.
So I think as we start to see that take shape and we share our market information between ourselves and POSCO we’ll be able to get a better assessment of where we think the next early opportunities are and how big those opportunities are as well.
Michael Lew – Think Equity
And also could you characterize the size of the current pipeline over the next 12 months, beyond POSCO, is it primarily megawatt demand and also the types of market segment deployments.
Daniel Brdar
Most of what we see in the pipeline is megawatt-class. We do have several wastewater treatment facilities though that would take multiple sub megawatt units, they tend to be 600 to 900 kilowatt sized units. I would say the wastewater treatment is probably about a third of what’s in the pipeline. And then the rest of it is large-scale megawatt-class that are largely grid applications like in Connecticut, like in Korea.
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