Good morning or afternoon, depending on where you're located. My name is James 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 two 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 seven presentations, a break, and a Q&A session at the end. Our speakers will be our Chairman and Chief Executive Officer, Dr. Vasilis Gregoriou, Dr. Emory DeCastro, Advent's Chief Technology Officer, Dr. Chris 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'll 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 emailing them to investorday@advent.energy. Before we proceed with the presentation, I'd like to take this opportunity to let you know that we'll 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 Advent's 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. Vasilis Gregoriou, who has served as Advent's Chairman and Chief Executive Officer since the company's inception. Vasilis is a scientist by training, and his published works as co-author include three books and more than 100 scientific papers. Vasilis is also a co-inventor of 16 patents. Vasilis, 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 through a shared belief that the world can decarbonize quickly with green hydrogen and fuel cell technology. We know Advent can and will play a pivotal role in this transformation. Affordable clean energy and energy independence are becoming strategic objectives for the world. We aim to bring our technology to the mass market by building world-class fuel cells and electrolyzers with a low total cost of ownership and high positive environmental impact.
We're seeing a reversible path to fossil fuel replacement, and Europe is taking a central stage here. Back in May, I had the privilege to participate in the European Electrolyzer 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 plan towards secure and sustainable energy and independence from Russian natural gas.
Monday, June 6th, 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 US President Biden to spur clean energy manufacturing, to reduce energy costs for families, strengthen the domestic grid, and tackle climate change and environmental injustice. As part of the Defense Production Act for clean energy, President Biden has authorized the US Department of Energy, one of Advent's key strategic partners in the US, to accelerate the manufacturing of critical clean energy technologies such as electrolyzers and fuel cells. We firmly believe the hydrogen moment is 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 is in Europe is well-positioned to meet this need. For fuel cell, in addition to pure hydrogen, we should use e-methanol, 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 a $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 phase this out, though, we're left with two options. Batteries, but batteries 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 of vital importance for us to replace all our engines and all our fuels in the next 15 years. In our opinion, we're 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 will soon be able to provide the most efficient fuel cell products at 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've partnered with the European Union, the US Department of Energy, the US Department of Defense, and plan to partner in Japan and South Korea with the top institutions and world leaders. Through joint development agreements with select partners that are 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-temperature 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, 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 shared mission to accelerate global decarbonization and provide energy security and independence to our people. We also populate 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 markets. Our high temperature PEM stationary 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 to 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 three times lasting longer, and they have double the power density from the previous system that we had. We believe this development will revolutionize the fuel cell industry. This will be the first PEM-based fuel cell worldwide that can consistently operate above 100 degrees Celsius, more than 10,000 hours, and are ideal for heavy-duty mobility. In addition, the high temperature PEM technology can support multiple fuels, e-fuels, and low-grade hydrogen on board and operate under extreme conditions, -30 degrees Celsius to +50 degrees 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 six 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 five projects out of 20 candidates from Greece that they were sent to the EU for the IPCEI funding. These five projects were then subject to detailed review and due diligence process by the EU, resulting in two projects notified by the Greek state.
The notification in the first wave of IPCEI hydrogen technology is a testament of the world-class innovation that Advent Technologies possesses and the belief that Greece and you and EU have in Advent's ability to deliver such an important project. Upon EU ratification, 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 six years. Green HiPo is focused on innovation and the production of high-temperature PEM fuel cells and electrolyzers. 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 six 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 temperatures, humidity, and air quality using pure hydrogen, but also a variety of other hydrogen carrying fuels. Hence our motto, any fuel anywhere. Dr. Emory De Castro, our Chief Technology Officer, will provide an in-depth analysis of our 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 and evolved rapidly with strategic acquisitions and extending Advent's product offering.
In March 2021, we announced the launch of our joint collaboration with the US Department of Energy for next-generation fuel cell technology and our production new product development and manufacturing facility in Charlestown, Massachusetts in the United States of America. During the same month, the US Department of Defense selected our wearable fuel cell for 2021's validation program. One month later, our strategic collaboration with the US 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 were nominated to be part of the first wave of IPCEI hydrogen, and we also launched our M-ZERØ fuel cells to significantly cut wellhead methane emission.
At the same time, we completed the acquisition of German fischer eco solutions and Danish SerEnergy to create a global vertically integrated fuel cell leader. Finally, in October 2021, we announced the successful installation of the Advent fuel cell system in the Philippine telecom sector. Late in December, we signed an MOU with BASF to secure the supply chain for large-scale 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 substantial investments in electrolysis while also becoming a system company and expanding new technologies across all five continents of the world.
The first seven months of this year has been marked by new partnerships and contracts for our MEA electrochemistry components with key global players. In March of 2022, we announced the availability of our next-generation MEA, which is currently developed under the framework of the L'Innovator 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 long-standing customers, Safran Power Units, completed another order for high-temperature PEM MEAs. May was also quite an important month for Advent. I was highly honored to be part of the European Electrolyzer Summit in Brussels.
As I said before, there, along with Commissioner for the Internal Market, Thierry Breton, CEO of Hydrogen Europe, Jorgo Chatzimarkakis, and 20 CEOs and executives representing European electrolyzer manufacturers, we met and signed a joint declaration establishing a clear goal of paving the way towards achieving the objectives of the REPowerEU proposed hydrogen accelerator. In the same month, and Advent entered into a technology assessment agreement with the second largest global automotive manufacturer. Unfortunately, for confidentiality reasons, we cannot disclose its name now. Finally, in June 2022, we officially received the notification for the Green HiPo, totaling EUR 782 million. As we approach 2023, we aim to scale up capacity in the US as well as in Western Europe and Greece through new state-of-the-art facilities, and further strengthen our strategic partnership 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 off-grid aviation and mobility. Providing clean energy is our global objective, and to achieve this, we must balance the three E's, 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 catalyst 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 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 six 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, Vassilis. I'll now turn it over to our next presenter, Dr. Emory DeCastro, who has 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 DeCastro, CTO of Advent Technologies. I'm happy to be with you today and excited to be talking about our technology. What makes Advent technology 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 in that we have great resilience in very hot and dry climates and wet climates, cold climates, so we can really work anywhere around the world. 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's still some issues. Hydrogen is very hard and expensive to transport in either the gaseous or the supercooled 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 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 as their hydrogen carrier. 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, for 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. 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 shuttle. Also these hydrogen carriers carry a lot of energy. For example, if we look at the methanol energy per volume, per liter, 4.3 kWh per liter for methanol versus hydrogen, which is 2.6 kWh per liter. So there's a lot more energy per volume when you're in this liquid state with these hydrogen carriers. 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.
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. That ultimately, 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. 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. This fuel flexibility allows these markets.
Then lastly, for off-grid power, whether it be a small remote systems to power batteries, to recharge batteries in the field, or for surveillance, on our national borders, again, having a small cartridge of environmental methanol, makes the logistics of running 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, molten 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. In 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. 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 startup times. Phosphoric acid fuel cells are very good for fuel flexibility, but only moderate power density, so 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. 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 two key things. One, fuel flexibility. They can only use highly purified hydrogen, 99.99% hydrogen, if not pure. 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.
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 twelve o'clock position, talks about resilience. 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 starts to go down. 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.
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. We have this great ability to remove heat. Second, on the right, runs humid, runs dry or wet. This is now the change in relative humidity. The span for us is really 100%. 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. Whereas low-temperature PEM, you need water in that membrane to conduct protons, and thus you need to control that water, having 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 your fuel cell in polluted air, the cathode, the air side of the fuel cell can also get poisoned. Again, we run high temperature.
Those poisons don't impact us nearly as much as the low-temperature PEM. Lastly, there's lifetime. This metric is just using time for 10% voltage drop. Here we can see a substantial increase. This is actually projected from laboratory results, but really showing, you know, very stable performance and the ability to start to meet what is needed in heavy-duty transportation. High temperature equals high efficiency. Again, the efficiency word here addresses two 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. Here, if you have a large radiator in a plane, the drag through the air is enormous.
It really makes it impossible. It's not difficult to fly an 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, you know, think about big Class Eight trucks today running up a mountain in the middle of a desert. 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 the desert. We can run pulling that truck uphill under a high power load. It really gives you high efficiency in how you're able to cool.
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. There's one part of the efficiency. Also the quality of the heat that our systems give off 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 invented in the mid-1960s.
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 degrees C still exists. It was our founder, Dr. Gregoriou, that actually identified our first, Advent's first high-temperature PEM membrane and engineering polymer, came out of the university, and we released generation one at that time. BASF had come with additional innovations. Generation two was released later on, roughly a little bit over a decade later. In fact, Advent makes and sells this product.
Now, through a 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 a fantastic material that allows far higher power compared to our early materials, which allows us to get into these transportation markets. 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. We've done this basically through acquisitions. We purchased one of the leading high temperature PEM companies for portable lightweight systems, that's UltraCell, now called UltraCell 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. Secondly, we acquired a company called Serenergy and fischer eco solutions. 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, the stationary power.
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 are either issued, licensed or pending. As I said before, we have a very strategic partner in the US Department of Energy with regards to next generation materials, such as Gen 3. Also our work with the US Department of Defense in 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 a L'Innovator program involving Los Alamos National Laboratory, Brookhaven National Laboratory, and NREL with regards 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. A fuel cell does fine when it's in the passive off condition and then comes online. 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 LLC's advanced stack technology, making lightweight, compact stacks for eventual deployment in trucks and aviation and marine. On the upper right, we have the Honey Badger. This is a defense system.
To give you some example of the value of this in the defense industry, today, a three-day mission for the electronic soldier, they would typically have to carry 125 pounds of lithium-ion batteries. Now, with the Honey Badger and roughly 3 gallons of methanol, they can reduce that down to 25 pounds. 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, say, national boundaries and things of that nature, where you need long-term remote surveillance of that barrier, the border. Lastly, there's M-Zero, the lower right. These are making a difference in the Canadian oil fields.
Today, they've actually shown to work throughout the Canadian winter. They are controlling 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's, you know, a very potent greenhouse gas. Now with the M-Zero controlling the valves throughout the Canadian winter, we can actually eliminate or reduce the unintentional release of methane to the atmosphere. 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, you know, combined with electromechanical controls and power electronics, goes out into the systems that are out in the field today.
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 SereneU power system. This is operating on methanol and/or e-methanol. We have building blocks of 5 kW. We can put up to three 5 kW units in the upper chamber. The lower chamber in this model is a methanol tank. In this embodiment, you know, up to 4,400 kWh of electrical energy can be there. But you can also have external tanks as well if you need truly remote systems, you know, 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. It's relatively easy to go through our training program to service these in the field. It works out very well for our customers that are now replacing their current backup power systems with a SereneU. When we talk about membrane electrode assemblies and our core technology, it actually is a combination of several technologies and several specialties, and we have these specialists in these various fields.
For example, the membrane at the core, this is the component that allows protons to be conducted in the absence of water and operate at 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 casts it as a film. 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 three-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 for here.
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 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. 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. You can see here in our dollars per kilowatt for the MEA. Once we get to these type of levels, we 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.
This is a main goal of the company, is getting our costs down, our capacity up. Then really addressing internal combustion engine markets. 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 far more efficiently, and not lose a lot of your energy through the resistance of a high current system. High voltage is key. Second of all, another innovation from the team is individually controlled sub-stacks.
This way, if there is a low performing sub-stack, 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 design, flat, it's a flat flexible form factor, can fit in the undercarriage of a vehicle. The way DIGI-TRONIC is designed, we can also repackage the individual strings, and that could go into sort of more of a rectangular or block configuration if needed. Lastly, with regards to DIGI-TRONIC, we have very superior heat management and removal. Because we can run hot, up to 200 C, we can show 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 the ships, the planes, the trains, in the end, we're actually selling kilowatt hours, right? We're selling power for a certain period of time. Your total cost of ownership really depends on getting as high a power possible out of a single unit. 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. Second of all, it has to do with lifetime. If we can increase the lifetime, we are getting more hours out of the same unit, thus increasing overall kilowatt hours.
We can see that with these innovations, we can see a clear path to decreasing the total cost of ownership for our customers, as we implement these out in the field and in various devices and systems. In conclusion, when you think about Advent's technology, being able to use fuel cells anywhere in any fuel. Because we run hot, we have this exceptional capability to run with multi-fuels. 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 mixed 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. Really well matched the conditions around the world.
Lastly, because we run hot, we have high efficiency, not only in our use of fuel, but in our ability to remove heat. With that, I conclude, and thank you very much for your time.
Thank you, Emory. Now I would 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'd 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 in Advent. Emory already talked about our technology, the high temperature PEM technology and the differentiating advantages it provides. I'm going to try to talk today about how this translates to revenue and the growing business. 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, small for small power needs, for infrastructure, surveillance and defense, and finally, mobility for trucks, aviation and marine.
Electrolyzers that is very related to the IPCEI development program that Vasilis talked about before. I'm not going to cover electrolyzers today, but I will everything else. Starting with stationary power systems and replacing the diesel generator, this is a system that we already have in the field, a fuel cell that has been developed by SerEnergy and acquired by Advent last year and developed further. The goal is to replace diesel generators in a variety of applications across the world. Diesel generators are obviously one big problem right now because of all the pollution as well as the greenhouse gas emissions. It is still a growing market because there are many parts of the world where there is need to base power and to have more power when there's bad grid or off-grid applications.
The market for diesel generators, believe it or not, is still growing, and it is a very interesting market for us. One of the most interesting applications is the telecom backup power. Mobile towers that require backup power because they're off-grid or in bad grid situations. You can see here the Advent SereneU fuel cell system and also the cabinet where it has two systems, and it runs also, and on the bottom part of the cabinet, it has the green fuel and runs on methanol as a hydrogen carrier.
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 kW to 15 kW to 20 kW of power there and be able to switch it automatically and support telecommunications. The number is still growing. The grids get better in some countries, but you need a lot more towers because of 5G. 5G requires a 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, 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. Obviously the quiet clean power that an Advent fuel cell can provide there is of a great interest. 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 BSG agendas of the telecom companies will simply not have a license to operate anymore. 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 a forest or anywhere else where you simply don't have you know, the ability to deliver hydrogen in any form, right? What we can use, we can use biomethanol or e-methanol down the line. These are clean fuels. They're fuels like e-methanol that eventually and very soon will be produced from green hydrogen. It's a liquid carrier of green hydrogen, but we have the unique advantage of being able to use these fuels directly without having to reprocess them back to very pure hydrogen. Okay?
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 green fuel cost we believe will keep dropping. Hydrogen will become more and more affordable, and it will be converted to e-methanol, and diesel costs will keep going up.
The goal of our solution is not simply to be a green solution and that fits the 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. 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. As we reach that point, obviously we will see the demand. We expect demand to increase. We have started one of the big case studies we have is in Philippines, where we are supporting two operators.
There we have a 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. We have done this in Philippines, 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 you might have and 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 a team that will bootstrap future countries and big installations, primarily across Asia, but also at other parts of the world.
This is very important because, as I'm gonna talk about right now, our model will be switching to channel partners from direct sales. 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 it, and we had direct sales and service. Our strategy and our goal this year is to work with framework agreements through channel partners. 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.
As I said before, they don't care only about the green agenda, but also about the total cost of ownership primarily, and this is our strategy. OEMs that 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 versions of our fuel cell, which they can bring to the market under their own name. We will talk later about 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 about 2,000 new systems in the market in the next 18 months.
We have a good pipeline of about 17,000 towers. Remember that the market is more than 1 million towers. We have a good pipeline of 17,000 towers in, with, different tower costs and telecoms around the world. Direct sales, if you look at 5,000 systems times 20 kW, you're looking at a 100 MW opportunity. 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 kW. It is, you have to do the full manufacturing and everything, so it's, slightly gross margin. It's 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 in, down the line, which will create a 10x opportunity. The revenue would be smaller, in the hundreds of kilowatts, hundreds of dollars per kilowatt, because primarily there, we will be charging for the MEA and for a licensing fee for the private label version, right? There will be a reselling fee by tower costs, et cetera. The gross margin will be higher, and we do expect the CapEx and OpEx to be lower. We definitely need to expand our channel partner model, and that is what we're doing. That's the first area of stationary power systems. We have focused a lot in telecoms because it's an immediate opportunity, an immediate market.
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. These are human portable or not lightweight power systems that are used for critical infrastructure support like supporting a network in the middle of nowhere or in the Canadian forest, let's say, or for surveillance or in one of our examples for defense.
One of the very interesting examples we are bringing to the market, and we are in a joint development program with the US 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. They have a variety of needs in the field of operations. They need to communicate with drones, with satellites, with themselves, each other, and they do require power on the move. It used to be that only a few of them would require that. Now, almost everybody seems to be requiring power on the field. Especially if the US Army brings forward their IVAS augmented reality program, which will put a.
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, they would have six times the weight. Depending on the mission, you could have up to 25x effect in reducing the weight versus batteries by using our fuel cell. This fuel cell is designed and has passed already a lot of military tests. We do expect that if it's successful, it will have a low first production in 2023 and 2024, 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. It's actually a windshield washer fluid that the US military has already, and that makes the logistics super simple. You can see that our multi-fuel strategy is really translating. We just gave two 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 gonna happen for these applications, and it doesn't need to happen because e-methanol will simply be the same as hydrogen. It's a hydrogen carrier. Another example, also the same, is that also using methanol, the Canadian oil and gas market. They have to put remote power that operates year-long in the middle of winter in the Canadian forest, controlling, supporting, giving power to the control systems there, so they can electronically control methane emissions.
This is a big problem, and they're changing all the methane emissions control programs there, and it's going to have a massive effect in terms of reducing equivalent carbon dioxide emissions. There is a lot of push to replace all these systems. It is an application that is niche, but it has we do believe great value and that 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 sites, so that resolves any other problem you might have with deploying the system. 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 2023. As I said, after that, we expect to be in mass production. But there are a lot more applications that are of extreme interest. There are applications in terms of that require power remotely and in terms of drones, firefighting drones, agricultural robotics, augmented reality, which is going to be a great opportunity. We do see a lot of applications where the technology will move away from defense into mission-critical applications that are high margin and uniquely differentiated niche markets.
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, much bigger area, of course. We believe that fuel cells are ideal for heavy-duty mobility, for aviation and marine. I'm going to discuss a bit how we intend to approach this market. 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 product to be able to have efficient operation. We also have the next generation of fuel cell developed, which is called the DIGI-TRONIC architecture. 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 you need 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 hundred 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. These areas, the companies that do have experience in the field, that have used fuel cells for years, do understand exactly why HT-PEM is a technology that can bring the difference. We obviously are in discussions with many of them for bringing the product to market. Heat rejection together, obviously, with operating more and more into extreme environments in a world that is getting hotter and hotter every day, you know, is 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. Therefore, our big advantage there is that we can directly use a fuel like methanol, which we believe is a very practical fuel. 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 riverboats, et cetera, and then move to bigger and bigger ships.
We're talking also with companies there that are manufacturing the engines of the past and want to manufacture the engines of the future. 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 greener fuels. 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 research and development funds. That would be infeasible. What we do have is we have the innovative technology, right? The HT-PEM MEA and the fuel cell technology. 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 we use our architecture, the DIGI-TRONIC architecture and the MEA to develop a system with them that is specific for a particular market need. After this phase, in which we're paid primarily in a bio-engineering phase, we move to the second phase, where we provide the manufacturing know-how transfer to them. We don't want to manufacture everything for the whole world. That's impossible, right? 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?
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 wherever they want, whatever they want, and also, of course, to market the product and bring it to the market as theirs. We have seen this slide before. If you have followed Advent, this is how we expect our revenue and our types of revenue to grow under this model with joint development agreements. We have already announced that Hyundai is in the first phase, which is a technology assessment, where they're evaluating the technology. There is also an equally big automaker that is in the same technology assessment phase. There are many discussions also with world-leading conglomerates from automotive, aviation and marine.
Proposals exchanged and discussions, and there's a lot of interest. A lot of these companies have $10s of millions or even $100s of millions of revenue. Billions, I'm sorry, billions of revenue per year. They seem to be extremely interested in the technology, and these are the relationships we want to forge. In terms of growth strategy, of course, you can see Advent based on everything I said, as 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 try to do what is out.
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 US Department of Energy and Los Alamos laboratories will get into the market that will bring a 2x-3x power density improvement and a 5x lifetime. All these directly translate to reducing the total cost of ownership. Smaller systems, easier to make systems that last much longer. All of these translates into a lower cost of producing a kilowatt hour. The graph of course is gonna change for every application. It's not a universal graph, rather indicative, right?
Every application has different costs associated with fuel and service, et cetera, and different priorities. As we approach 2024, we're not simply selling a solution that is green. What we're bringing to the market is a solution that is going to be cheaper. 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. All of them actually have come from the fuel cell industry, and they're working on the strategic joint development agreements and OEM deals. Around the world, someone focused in Asia, someone focused in Middle East and Africa, by region, et cetera.
There's also dedicated sales force for the Serene Telecom stationary systems and for the portable systems, which these systems are ready to enter the market. There we need the direct sales force as well. Obviously, in terms of strategic business development, our partnerships with US Department of Energy, US Department of Defense and EU institutions are extremely important for growth. In terms of 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 these one or two of them will affect the overall picture of the year.
When we talk about joint development agreements and this QNM, 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 a smaller part of the revenue. Finally, we do expect support from R&D and government grants as part of the $23 million revenue and grants target that we have for the year. In summary, this is our business development and growth strategy. We're looking forward to executing, focusing a lot on innovation and differentiation to bring advanced HT-PEM 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 one of our SereneU fuel cell systems operating in the Philippines. Welcome back. Now please join me in welcoming Mr. Jorgo Chatzimarkakis, Hydrogen Europe 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 beings, we sometimes need external shocks in order to change our habits. 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 and 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-19, put together knowledge but also some courage to draft the hydrogen strategy that was published in July 2020.
Only one year later, a lot of legal basic ideas have been presented by the same commission, but the commission now discussed in the European Parliament and in the council, with some of them already being issued in autumn this year. 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. All these legal proposals, all 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, courageous people who do investments, do 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 get some public funding in the near future, and we are happy to see this flourishing. 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, for 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. Let's talk about Green HiPo. Green HiPo is an important project of common European interest, also known as IPCEI on hydrogen technology. IPCEI is a new initiative to achieve EU climate targets, maintain the competitiveness of EU industry, and enhance EU energy autonomy. REPowerEU is a complementary to IPCEI-EU initiative, which has been recently announced. REPowerEU aims at reducing Russian gas demand, boosting resilience and decarbonization, and calls for a hydrogen acceleration. The EU target is to produce 10 million tons of hydrogen by 2030, which corresponds to approximately 400 gigawatt electrolyzer capacity. Advent's Green HiPo will help EU to accomplish these goals. It creates an innovative and complete hydrogen value chain approach. Green HiPo's scope is to establish R&D and production line facilities for the innovative development and manufacture of high-temperature PEM fuel cells and electrolyzers systems.
These will 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 1.5 GW over a period of six years. The green hydrogen produced by the electrolyzers will help towards decarbonization of several industrial activities, such as steel and chemical industries, petrochemicals 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 comes 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 reach 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 six years. Market of 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 their competitive advantage over alternative fuel cell technologies. That's it for my slide. 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, Advent 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 ratification is expected this month in July. EU ratification will clear the way for state aid, and therefore funding will be made available over six 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. 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 of sunlight 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 the 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 Hypower, one of Advent's customers, highlighting how, through joining forces, we significantly impact global decarbonization efforts today.
As global warming becoming a serious concern, reducing carbon emission becomes an important task to achieve a net zero emission common goal in 2050 for many countries. To phase out fossil fuel use in internal combustion engines, we are now adopting electric vehicles which provide us comfort and emission free for our younger generation with a better air quality. Fuel cell provides clean energy, but the access to compressed hydrogen gas is not easy. Diffusion of electric vehicles are often limited by charging infrastructures. These obstacles can be overcome by off-grid fuel cell solutions using methanol-reform fuel cell. Hypower is working on fuel cell solutions in combination with green alternative energies such as wind and solar power to build green fast charging infrastructures for EVs and electric motorbikes in Taiwan and Asia. The solution offers clean and green energy for EVs anywhere.
Advent's fuel cell power module is a compact and powerful fuel cell module that we at Hypower integrate this product technology to build our microgrid system to offer mobile and fast deployable charging stations. In this method, charging infrastructures can be constructed in a short time anywhere and allows EV users to access to clean and low carbon energy. Methanol liquid fuel can be supplied like gasoline with low handling costs and lowering carbon dioxide emissions. The Advent high-temperature PEM fuel cell module takes methanol fuel and converts clean energy that can replace dirty and noisy diesel generators. This technology supports Hypower to develop a fuel cell microgrid system that can run 24/7 continuously with low cost on maintenance. The flexible modules can also be integrated to build a large system for different power requirements.
Whether for 5G base stations, off-grid electricity, special vehicles, or long distance ships, the route to stable, expandable, and efficient renewable energy systems is clearer than ever. Hypower will be your most professional suitable choice.
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-$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 three E's 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 HTPEM 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 50, the 50-watt wearable fuel cell. We have a production and stack assembly plant in Aachen, 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 two 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 hosted. 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. 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 HTPEM. Advent's fuel cell value proposition is set forth in this slide. We reduce CO₂ emissions. We reduce noise compared to diesel generators, certainly. We reduce 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 the 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 Laboratory, NREL, Brookhaven National Laboratory, and what we're trying to do is work on the commercialization of next generation HTPEM 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 DOE here. We're also working with ARPA-E to develop next generation fuel cells for the automotive industry.
I mentioned Honey Badger earlier. We're partnered with the U.S. Department of Defense for the Honey Badger 50 W reformed methanol wearable fuel cell. This is a power system for soldiers. Lastly, we're working with Northeastern University on MEA development, low-temp 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 two 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.
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 sq ft manufacturing and R&D facility. It has state-of-the-art robotics technology that'll help us scale up and meet increasing global demand for fuel cells rapidly. 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 megawatt of power per month. As you'll 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 our first year as a public company.
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. We hope to become more sustainable by meeting our sustainability goals each and every year. We hope to achieve energy savings company-wide. We realize these savings whenever and however possible, and we deliver electricity back to the grid, and we rely on green electricity whenever possible. Our Boston headquarters facility at 200 Clarendon Street, the building has a gold-level LEED certification. 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 non-hazardous 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 an 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 Rennes, the 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's 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 whistleblower and a complaint policy, and we investigate any claim that is made.
We also have an insider trading policy, an anti-fraud policy, and a related persons 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 in multibillion-dollar publicly held corporations. From 2018 to 2020, Kevin was Executive Vice President and CFO for Myers Industries, Inc. 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. 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 licensing fees, as well as joint development agreements.
As Emory discussed early in the presentation, the MEAs is, you know, 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 wanna move to the next slide, I'm gonna discuss some of the growth opportunities that we see across these various revenue streams. Starting with the left side of the pie chart, the systems revenue, we really see two 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.
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 gonna develop and manufacture under the Green HiPo project. We do not have revenue from electrolyzers today. 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. 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 increase 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, you know, a small amount of revenue to today. I'm talking about mobility, heavy-duty trucks, aviation, marine. I, you know, as Vasilis has mentioned before, aviation may be further into the future, but mobility is, you know, an opportunity that's near term. We're really excited about it, and we think it could be really significant for our business. Joint development agreements is the final piece, and I'll move to the next slide to discuss the joint development agreements. I think as we all recognize the engines, the fuels that are used today, it's gonna change dramatically over the coming years.
It is our belief that many OEMs to innovate in-house and develop the technology in-house will be cost prohibitive for them. That's where Advent, we think, 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, too, you know, with access to new markets. I think there's a tremendous opportunity for joint development agreements with large global OEMs.
In summary, on the next slide, really, as I mentioned, four or five different, you know, 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, you know, 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. Let me turn now to financial metrics and what we see as the outlook for our business in longer term.
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. We stuck with a revenue outlook. To be consistent with that, and since really 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 gonna provide a revenue outlook, a longer-term revenue outlook today. We're not gonna provide anything on EBITDA or margins. In terms of revenue, we are targeting $300 million of revenue in 2025.
This slide gives some of the details on why we, you know, we believe we have a path to deliver the $300 million. Many of the opportunities that I've discussed, as Chris mentioned, in stationary, there's 1.2 million telecom towers globally that require backup power. So that's, you know, if you do the math, that's even a small fraction of that market could be a significant opportunity for us. Mobility, aviation, you know, 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 six years.
Just over $100 million per year. Naturally, there will probably be a ramp-up period. Maybe in 2025, we're still below $100 million in revenue, you know, under the Green HiPo program, but still another source of significant revenue in 2025. When you do the math and add it all up, you know, we firmly believe that there's a path to achieve and deliver $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 note that 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 that's just outside of Boston. We expect to receive the majority of that $5 million back in the second half of the year via tenant improvement allowances. You'll see a pretty significant swing in cash flow between the first half and the second half. I did wanna 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.
Currently, if you exclude that Hood Park impact that I just talked about, and you assume no margin from revenue, currently 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 three quarters of the year. 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. We're currently assessing opportunities to reduce costs and reduce spending.
We look forward to updating you as we finalize plans on that, but we're targeting a 20% reduction to the $11 million per quarter spend that we currently have. Finally, as we've talked about before, the Green HiPo funding, you know, a huge win for us, EUR 782 million over the course of six years, over EUR 35 million in year one. Obviously that's a really big win for us. You know, 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.
Finally, let me wrap up with a slide about our stock valuation. I think we all know there's a tremendous growth opportunity across the entire hydrogen fuel cell industry. This slide, you know, 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. As you can see, you know, again, great growth opportunity across the entire industry. We believe we have superior technology. We feel we have a strong pipeline of opportunities. You can see on this slide that currently we have some of the lowest revenue multiples, if not the lowest revenue multiples in the industry, you know, based on our revenue targets. That concludes my presentation for today. 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, but if we are unable to respond to your question during the event, rest assured that we will follow up with an email in the days that follow. First question is from Adam Forsyth at Longspur. 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? Vasilis, could you respond to that?
Thank you very much for your question. The immediate expected state-of-the-art facility is the facility at Hood Park, which we expect for this to be operational November. Already we have 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, you know, after we sign the documentation and go to the next phase. 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 gonna have a problem with staffing because the particular region there, it's an industrial region.
You know, they had lignite plants for kind of ever. There's a lot of good personnel. There is a university, you know, a relatively modern university, so we can have, you know, a lot of recruitment from the university. That's very important to me, you know, a university to be close to your production facilities or, you know, 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, a beautiful place also to be. I don't think we're gonna have any problems with, you know, bringing top-level talent in that part of the world.
Thank you, Vassilis. The next question is from an analyst at Fearnley's 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, can 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're currently assessing primarily the high-temperature PEM MEA, and based on the results, they may proceed to a next phase where there will be we expect to have some strategic collaboration, and we intend to. It is our intent to have strategic collaborations in each sector with world-class manufacturer. 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 truck to operate in India or an APU in an airplane or in a cruise ship, for example, you have a much better chance with HTPEM for all the reasons 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 end license. It is a win-win for both companies. You see, we are not an automotive company. They're not electrochemists. I think it's we're looking for the right partnerships. Hyundai is, as I said, the company that is already in the technology assessment phase.
Thanks, Chris. The next question comes from Fearnley's: 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. Obviously, this is not an ideal market to do that. Our situation is a little unique with the Green HiPo project. Under that project, pending EU ratification, we will receive EUR 782 million of funding over the next six years, which will obviously fund our CapEx and R&D needs. That includes over EUR 35 million in year one of the project. We, you know, through that project, will receive the funding that we need without having to dilute our stock, without having to add leverage to our balance sheet. 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 tech, you know, the technology solutions, and in return, the OEM partner can provide capital support to us. Those are the two 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 Fearnley's, the area of economics. What is your sales price, your 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. A high-volume automotive deal will demand a lower price than a niche drone or defense application, for example. Also, it is not solely dependent on the stock price. You have to look also at 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 and demand for a certain application. The MEAs have more of a standard price, I would say, regardless of application, but depending on volume, of course, and maturity of the MEA. We expect the price to drop and our margins to increase as we scale up 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 stab at that?
There really is a great interest from four industries, whether it be large scale power, heavy duty trucks, marine, aviation. We're putting proposals in front of these companies for development phases. We've already built our first mobility stacks based on the DIGI-TRONIC architecture. This new Advent MEA, which, you know, is good for many applications, but we think will make a huge difference in mobility. Today, it's in a low rate of production, but we're already seeing great results, you know, roughly two to three times the power density, good results on degradation, already implementing a simple balance of plant because of the high heat. The applications for this technology is really limitless. We believe it really solves a lot of the problems for PEM type of technology. It's really just a matter of getting this in front of the key decision-makers.
Thank you, Emory. Is the development of the new MEAs for lightweight applications still on track for commercially ready product next year? This question is from Panmure Gordon. Emory, could you please respond?
Yeah. With regards to developing this new MEA for lightweight applications, not only is it on track, but we think it's slightly ahead in development. The early results we see are really excellent. You have to realize this is new technology, and it's in the first stage of development. We're really optimistic that we'll even get better every single production run. As we learn more about this chemistry, we see additional improvements. Yeah, our new MEAs will go into existing products for development purposes this year and then scale up in 2023 and have a market impact in 2024.
That's great. Thanks, Emory. The next question is from Panmure Gordon: Do you plan on adopting a similar business model in lightweight and heavy duty as you do for current product suite? Great question. Emory, can you please respond?
You know, with regards to the similar business model between lightweight and heavy duty with our current product suite. Well, in our current product suite, we have primarily stationary and portable, and we're working more and more through resellers and framework agreements to really be able to compound our market capability. In the mobility sector, we do believe that every major player in the world will want to control manufacturing and brand. There's a real large push for made in our country, just like made in America, just like made in Europe. We have a strategy that will allow our key OEM partners to do this, and we will focus on the MEA and then licensing their hardware technology. This is really a more scalable business model that allows us to grow quickly.
Thank you, Emory. The next question is from Panmure Gordon. How has your pipeline developed over the last year in terms of opportunity, size, and between the demand for technology and products across components, stacks, and systems? Great question. Chris, can you please respond?
We see strong demand for telecom systems, when the pipeline is increasing very strongly, and we expect it to increase much more with the channel partnerships we're going to develop. We did share some numbers during the presentation. In terms of MEA stacks, as standalone components, we also see demand, and that is increasing as well, primarily from Southeast Asia. In terms of, as I said, the channel partners agreements, we do believe that they will bring a lot of new pipeline opportunities and will increase our sales capabilities. We will also not need to have a global in-house sales network for its potential application, right? You understand there are literally thousands of potential applications for power generation, and these will be sold very locally and very vertically, right?
Selling telecom backup generators, for example, and selling automotive or defense, or marine is a completely different industry with completely different skill set and expertise in terms of, sales, right? Our job shouldn't be to try to sell directly diesel generators in South Africa, for example, but to partner with whoever can service and sell fuel cells instead of diesel generators in the future in South Africa. That was just, an example. Thank you.
Thank you, Chris. The next question is from Panmure Gordon. Now that the acquisitions of UltraCell and SerEnergy have been completed and are now fully integrated, has there been an increase in cross-selling between the businesses? Great business question. Kevin, can you please respond?
Keep in mind that really none of the acquired businesses had a significant sales staff at the time of those acquisitions. Quite frankly, Advent did not either at the time that we became a public company. It takes time. It takes time to build the right sales team in the right locations with the right expertise. All of that takes time. Also, keep in mind that you know a lot of our customer agreements, joint development agreements that we're pursuing, these are long-term partnerships and you know it can take significant time to win those deals. You know, obviously we're still in the early stages of our growth, but we're very optimistic about our growth prospects in the coming years.
That's great. Thanks, Kevin. The next question is from Panmure Gordon. Which geographies do you think are the most exciting across both electrolyzer and fuel cell products? Do you see different demand patterns emerging for components, stacks, and systems, or do you think this will be more customer-based? Good question. Nora, would you like to try that one?
Well, the geographical focus for electrolyzers is inherently different to that of fuel cells. Electrolyzers will be targeting geographical sectors that have hydrogen-intensive requirements, such as oil refineries and industrial. However, fuel cells will target manufacturing sectors, such as stationary as combined heat and power or mobility, heavy-duty trucks, aviation, marine, where the final OEM product could, in practice, be sited anywhere. To answer the second part of your question, Green HiPo will be focused on manufacturing systems. In other words, the project will not involve the sale of upstream stacks or components. Thanks a lot. I hope I answered your question.
Thanks, Nora. The next question is from Adam Forsyth at Longspur. With the announcement of availability of next generation MEAs in March, what work still has to be completed on the L'Innovator program? Excellent question. Emory, would you please respond?
We're producing MEAs now, and obviously we'll produce better ones as each manufacturing step evolves. Right now we're in the phase of scaling our production. We're taking what were laboratory processes and really industrializing those processes, so they're highly compatible with coating machines, and we can make material at large scale.
That's great. Thanks, Emory. The next question is from Adam Forsyth at Longspur. Can you update on specifications of the new MEAs? For example, is it two times or three times the power density, catalyst loading, et cetera? Very technical question. Emory?
Now, with regards to the questions about updating specifications of the new Advent MEA, you know, what's the power density, the catalyst loading, things like that. Again, these are early materials, but we're using these industrialized manufacturing processes. We've already shown that, you know, that quite quickly we've gotten to a twofold increase in power for the Honey Badger product. I actually see a roadmap where we'll have even greater power as we progress with refining these initial processes. With regards to precious metal catalyst loading, you know, again, it's early in the program, but in general, we're already using 20% less platinum than our current commercial catalyst. I should also point out that these Brookhaven National Laboratory stabilized core shell catalysts have passed initial high temperature stability tests.
This was a key question for us. Are these low PGM, highly stabilized materials which have been proven at low temperature, are they also stable at the high temperature? Certainly on the preliminary experiments, they actually look very stable and far more stable than the current catalysts that we're using.
Thanks, Emory. The next question is from Longspur. Can you say where you are in terms of delivering cost savings with the new MEAs? Great question. Emory?
Hey, that's a good question. You know, certainly cost savings is a key question for all of us within Advent. We expect the MEAs produced in 2023 will be made in enough quantities to bring new products to the market in 2024. That's our goal. We're already seeing 2-3 times higher power density, which really impacts cost and our preliminary lifetime looks good. You know, in the end, we are selling kilowatt hours, so the higher the kilowatts we produce per unit and the longer that unit lasts means the lower the cost of your kilowatt hours. Ultimately, we want to be cheaper than a diesel generator going forward.
Thanks for that, Emory. The next question is from Longspur. Will you seek third-party validation of the MEAs?
Yeah, that's a good question on third-party validation. Indeed, that's part and parcel of our program. We have two external tech assessment programs with automotive companies. You've probably seen the press releases on those. We anticipate more from other sectors down the road. You have to realize as part of the DOE L'Innovator Program, Los Alamos National Laboratory, you know, really the prime inventor of this technology, they also serve as an independent validator of all the materials we produce going along this industrialization process. They're with us, you know, basically every week when we produce new materials on coating lines, things of that nature, they validate that within their laboratories as well.
The next question is from Richard Clarke. Could you expand on the lifetime and day-to-day flexibility and practicality of the fuel cells, in particular, DIGI-TRONIC? Excellent question. There's a follow-up. For example, can one fuel cell stack use a range of different fuels, for example, methanol and e-fuels in its lifetime or even in the same journey? If so, does it require a washout and/or a separate tank? Emory, could you answer those questions?
Well, this is certainly an interesting question, and I have to be honest, it's never really come up as a requirement from the customer. Most customers either wanna use methanol because it's easy to store and to ship, and environmental methanol is available, or hydrogen because it's the 100% green fuel or say even renewable natural gas, you know, 'cause it comes from biomass because that's what they have today. No one has ever said, "You know, we want a vehicle that can do all these gases at once." It doesn't really make that much sense to have all of them, you know, within a single vehicle as well. We tend to go where the demand from our customers is. A customer says methanol, great. We provide systems right away.
In the end, you know, methanol will be green because it'll come from renewable hydrogen, and then made into environmental methanol. The same goes for hydrogen and other fuels too, like ammonia in Japan. We have this great advantage, even for hydrogen over low temperature PEM, because we can handle impurities, what we call low grade or low test hydrogen. There's already a fair bit of hydrogen around the world, but it is not the five-nines clean that low temperature PEM must have to use it. This is actually one of the limitations today of getting low temperature PEM adopted worldwide. The only place we really see fuel flexibility in one system is large scale power generation.
From what we're hearing and the approaches there is they wanna start with natural gas, and then move to putting mixtures of natural gas and renewable hydrogen coming from the natural gas pipeline, and then eventually switching over to pure hydrogen in roughly a 20-year project lifetime span. But we can handle this. You know, we would put the reformer external to our fuel cell stack, and then we're ready to go for this type of transition, which really shows the flexibility of our fuel cells and that they work today and they will work tomorrow. This is really what we mean about fuel flexibility.
The next question is from Richard Clarke: What is your vision for how this flexibility impacts the day-to-day user of the DIGI-TRONIC fuel cells? Good question. Emory, can you respond?
You know, this next question on flexibility also has to do now, not so much with the fuel, but the environment or geographically where our systems are being run. I think you've seen from these presentations, our systems are made to be deployed in, say, the jungles of the Philippines, in the north country of Canada, or even on the backpack of a soldier on the move with some liquid fuels. This is really the flexibility that we think makes a huge difference in the fuel cell space. It really translates to an immediate opportunity right now.
That's great. Thanks, Emory. This question comes from an unnamed analyst, and it is focused on Green HiPo. Green HiPo is clearly a monumental project. How often will Advent update us on its progress? Great question. Vasilis, can you please respond?
The next update is gonna be very, very soon. We expect the European Union to officially ratify the project by the end of July, the latest. That's our next announcement. Because it's such a big project for us, we will keep everybody informed in very regular intervals. We're looking forward to it because, A, it's gonna change us completely as a company, but also I think we will have a very, very big and immediate impact on the production of fuel cells and electrolytes. What really is missing in the world is capacity, and that's what the Green HiPo is bringing to the table. Thank you.
That's great. Thank you, Vasilis. This concludes the Q&A portion of our event. If we didn't get to you, we will be emailing you in the next few days. I'd like to thank you for joining us today. We hope you enjoyed the presentations. We look forward to updating you going forward and continuing our efforts to scale up, create value, and deliver positive results for our investors. Thank you and goodbye.