Hello, I'm Tom Gelston, Senior Vice President of Finance and Investor Relations. It's a real privilege to gather virtually with you today. On behalf of the entire FuelCell Energy team, welcome to our 2022 Investor Day. This is a dynamic time for FuelCell Energy, and we look forward to providing you with a more in-depth look at our strategy, key initiatives to drive growth, and the human capital plan to support it. Before we get started, I do wanna cover a couple of items. First, today's event is being recorded and will be available for one year in the investor section on our website at www.fuelcellenergy.com. Importantly, please note that some of the information that you will hear or be provided with during this Investor Day presentation will consist of forward-looking statements within the meaning of the Securities Exchange Act of 1934.
Such statements express our expectations, beliefs, and intentions regarding the future and include, without limitation, statements with respect to our anticipated financial results, our plans and expectations regarding the continued development, commercialization, and financing of our fuel cell technology, our business plans and strategies, the markets in which we expect to operate, and the size and scope of our total addressable market. Our actual future results could differ materially from those described or implied by such forward-looking statements because of a number of risks and uncertainties. More information regarding such risks and uncertainties is available in the safe harbor statement in the slide presentation presented today and posted to our website and in our filings with the Securities and Exchange Commission, particularly Risk Factors section in our most recently filed annual report on Form 10-K and our subsequently filed quarterly report on Form 10-Q.
Today, we have assembled key members of our executive leadership team to share insights into FuelCell Energy within their individual areas of expertise in order to give you a multidimensional picture of our company and opportunities. This presentation will also provide you a chance to ask questions of our executive team during the live broadcast, as there will be two question and answer sessions during today's event. We will answer as many questions as possible, time permitting. Questions can be submitted throughout the presentation via the Q&A section in the Investor Day viewing browser. Okay, let's get this started with our agenda. I'd like to introduce FuelCell Energy's President and Chief Executive Officer, Jason Few. Jason?
Thank you, Tom. Welcome and good morning. On behalf of the entire FuelCell Energy team, we welcome you to the FuelCell Energy 2022 Investor Day. Throughout the day, we will unpack six themes covering how the energy macro environment is constructive for driving growth at FuelCell Energy. The energy transition is happening around the world, and every industry, entity, and citizen will be impacted by what we ultimately believe to be positive for our climate, energy security, resiliency, reliability, and advancing life. We believe the energy transition represents what is likely the largest reallocation of capital in history.
Investing in FuelCell Energy provides optionality throughout the energy transition, decarbonizing power through power generation and carbon capture, and producing hydrogen, delivering a regenerative, localized energy source as a sustainable substitute to or in addition to low carbon and renewable fuels, absent geopolitical risk, mining, and recyclability. We will also cover how our purpose to enable a world powered by clean energy is attracting amazing purpose-driven talent to join our team.
We are broadening our partnerships in support of our growth and expanding our geographic footprint to offer our differentiated solutions in more places around the world. Our commitment to prudent balance sheet management, remaining disciplined on capital allocation with clear on and off ramps based on market adoption and the speed of the energy transition. Our plans to scale our operational capacity and fully commercialize our differentiated technology platforms supporting growth enabled by our strengthened balance sheet. What we do. We decarbonize power and produce hydrogen. We do this as a leader in manufacturing stationary fuel cell energy platforms that leverage our proprietary fuel cell technologies. Today, we operate across three continents, and our aspirations are to enter more markets around the world. We have over 400 team members, up by 27% versus a year ago, Q1 2021.
Multiple manufacturing locations across the U.S., Canada, and Germany, positioning FuelCell for local content requirements and efficient distribution. Our almost 100 installations demonstrates the commercial fitness of our platforms. From our installed megawatts, we have generated more than 13 million MWh of power. We have a revenue mix that is anchored by recurring revenue across generation and service and license, both of which are supported by long-term contracts. We continue to generate revenue through advanced technologies, and we are growing our product sales revenue, which Mike Bishop will cover. We are focused on generating balanced revenue mix that is supportive of our integrated operations. Our customer base is strong, consists of leading global brands, and we thank them for their long-term relationship with our company.
We continue to expand our global partnerships as our multi-feature platforms allow us to deliver solutions and/or work with partners on developing new capabilities to an ever-growing set of customers. Solutions such as carbon separation, carbon capture, high-grade heat, distributed hydrogen, and microgrid, just to name a few.
Next, on slide seven, our purpose drives everything we do to enable the world to live empowered by clean energy. We are delivering solutions that produce, capture, store, and supply energy, enabling a safe, secure, and practical journey to carbon zero. At FuelCell Energy, we decarbonize power and produce hydrogen. Our conviction to fulfill our purpose and the confidence we have in our innovations and the differentiation embedded in our platforms anchors our belief that FuelCell Energy is best positioned to contribute to our global climate challenges head on. How do we get this done? We have the capability to produce low to negative carbon power. We have the ability to capture carbon from our own platforms for sequestration and/or utilization, providing the opportunity to have a more material impact on Scope 1 and 2 emissions.
We are optimizing our carbon capture capabilities to reduce carbon among the hardest to decarbonize and least likely to electrify industries. We also improve local air quality versus traditional combustion energy sources because unlike those sources of energy, we don't combust the fuel, and as a result, we limit NOx, SOx, and other particulates, and we produce hydrogen. We are working to commercialize our electrolysis and hydrogen storage solutions to increase the number of ways we can deliver and use hydrogen to meet specific customer needs. Our existing carbonate platform, as we will show when our Tri-gen platform achieves COD in California, we can provide green hydrogen given the fuel flexibility of our platform by using clean fuels.
Our platform has the flexibility to produce blue hydrogen utilizing low-carbon, abundantly available natural gas in some of the geographic regions in which we operate by capturing the carbon for sequestration and/or utilization. We see a bright future supported by the global commitment to the energy transition and the role we can play throughout the multi-featured platform capabilities of our carbonate platform and our soon-to-be commercialized solid oxide platform. We have an experienced leadership team with approximately 126 years of experience with FuelCell Energy and many more decades of experience outside of FuelCell Energy across a wide range of industries. The diversity of our industry experience is important to how we think about innovation, technology differentiation, capital formation, and scaling our business.
New team members like Betsy Schaefer and Andrea Jones, known in the company as AJ, demonstrates the importance we have placed on repositioning and reimagining our company, our brand, and retaining, recruiting, and developing world-class talent committed to our purpose. Reimagining our company and repositioning the brand is an essential aspect of our updated Powerhouse business strategy to grow, scale, and innovate. The gradient colors in our new brand acknowledges our commitment to working with our customers on a safe, secure, and practical journey to carbon zero. It reinforces our innovation and the electrochemical method we use to reform fuel and air into hydrogen to produce power, and the way in which our soon to be commercialized solid oxide platform will efficiently convert electricity and water into hydrogen. Our 53-year history is important to our story, and a lot goes into a name.
Repositioning our brand and more effectively telling our story will make FuelCell Energy or FCEL, as many of you know us, synonymous with decarbonizing power and producing hydrogen. Finally, when you take another look at our new logo, the outer edges form a zero, symbolizing our commitment to helping our customers achieve their goals, and as outlined in our sustainability report, it serves as a symbol of our commitment to achieve net zero across our operations. Over the last two years, with the help of our three long-term board members, our Chairman, Herb England, Matt Hilzinger, and Natica von Althann, we have built a talented, experienced, and diverse board committed to our purpose.
Today, our board is 63% diverse with an average tenure of four years, ensuring our strategy discussions are rich and enhanced with new ideas from individuals that bring a different set of experiences and point of view to our strategic dialogue. As you can see on the table on the right-hand side of the slide, we have a broad, deep mix of the skills needed to enhance the effectiveness of our board. Every company, industry, and individual is being or will be impacted by the energy transition. Capital inflows support broad-based investor views that the transition is not only necessary but real. ESG has a concrete position in investor and capital allocation conversations. As the energy transition unfolds, our technology provides solutions that decarbonize each category of consumption. For instance, transportation, we support electrification and distributed hydrogen production for electric vehicles.
For industry, we provide high-grade heat, hydrogen as a fuel, and we are working to commercialize carbon capture for our hardest to electrify industries. For residential, we provide distributed, clean, reliable power. In the commercial and public sector, microgrids, decarbonization, lowering Scope 1 and 2 emissions, and reliability. Agriculture and forestry, we have a number of biofuel platforms that have eliminated flaring of biogas, and we are working with Drax in the U.K. at one of the largest biomass power plants in the world to capture carbon. I would like to take a minute to unpack one commercial segment application, carbon separation. Carbon is an important ingredient needed in the food and beverage industries.
Leveraging our carbonate platform, and in the future, solid oxide, we have the ability to capture from 70% up to almost 100% of the carbon from the hydrogen-rich fuels we use to produce power. That captured carbon can be purified, adding upgrading technologies and delivered for use in food processing. Carbon is used in meat processing during the packaging process to prolong shelf life. This on-site solution can lower Scope 1 emissions by delivering power with a lower carbon footprint versus the average American grid and Scope 2 by removing the need to transport carbon being trucking to the site. Prior to discussing our view on TAM, I want to frame the magnitude of the capital shift forecasted.
According to a January 2022 study by McKinsey, achieving net zero would mean a fundamental transformation of the world economy as it would require significant changes to the seven energy and land use systems that produce the world's emissions, power, industry, mobility, buildings, agriculture, forestry, and other land use and waste. Based on the methodology used in the McKinsey study, capital spending on physical assets for energy and land use systems in the 1.5 degree Celsius net zero transition between 2021 and 2050 would amount to about $275 trillion or $9.2 trillion per year on average, an annual increase of as much as $3.5 trillion from today. Said another way, an increase from 6.8% of GDP to 8.8% of GDP between 2026 and 2030 before falling.
Based on our differentiated product portfolio and our platform's ability to deliver value against a number of customers and applications, we see a total available market of approximately $2 trillion through 2030. Earlier, I discussed the optionality embedded in FuelCell Energy through the multi feature capabilities of our platform portfolio. When you consider the size of carbon capture and distributed hydrogen alone, FuelCell Energy is well-positioned to compete for a meaningful share of these opportunities. Our platform's differentiation anchors our conviction against these energy transition opportunities. Just to give you two examples, we have the only known platform that can capture carbon from an external source, produce power, and hydrogen simultaneously. As shown on the chart, carbon capture is a $1 trillion opportunity for which various carbon capture technologies will compete.
According to a 2021 IEA report and a Global CCS Institute Global Status Report in 2020, global carbon capture and storage capacity as of 2020 totaled 40 megatons. This represents approximately 0.1% of the total current global CO2 emissions. New technology is needed to bend the curve. The IEA SDS scenario suggests that only 2% of total CO2 reduction called for in the IEA forecast is expected to come from technologies deemed mature today, creating opportunities for differentiated technologies like we're developing at FuelCell Energy. The only platform that can produce hydrogen, power, and water from a single platform, we are working to commercialize a highly efficient, low cost electrolysis platform leveraging our proprietary solid oxide technology. We have successfully demonstrated 92%+ electrical efficiency, and with waste heat, we can demonstrate 100% efficiency.
This represents a material advantage over PEM and alkaline fuel cell technologies. According to the Hydrogen Council, approximately $700 billion in investment is needed by 2030 across the total hydrogen value chain, including hydrogen production, transmission and distribution, and in-use applications. We are focused on a subset of those applications: power generation, mobility, heating, and industrial use. $160 billion in projects have been announced, leaving approximately a $540 billion gap, of which $210 billion is tied to hydrogen production and another $160 billion in in-use applications. We are excited to compete for these opportunities. We have a diversified business model that delivers a mix of recurring revenue, product sales, and advanced technology revenue. Mike Bishop will cover this in more detail later, but I will provide a few highlights.
Since launching our initial Powerhouse business strategy and restarting execution on our backlog, our recurring revenue from generation has grown by 90% over that time period. Each of our platforms sold either under a power purchase agreement or a product sale is bundled with a long-term service agreement that runs coterminous with the life of the assets, delivering another source of recurring revenue flow for the company. Our product sales to Korea Fuel Cell company, a subsidiary of POSCO Energy, is one of the exceptions to this rule. We updated our Powerhouse business strategy to reinforce our focus on innovation. We positioned our advanced technology team to not only deliver new innovations and commercialized products but to drive revenue through joint development agreements and our work with various government entities, most significantly the U.S. Department of Energy.
Finally, product sales are back in focus for the company, and we intend to grow this revenue line of our business, not only through our sales in South Korea, but other geographies around the world through expanding channel and distribution relationships in addition to our growing direct sales force. As I already discussed, our platform technology positions our company across a broad set of applications. We will do all of this with two platforms, carbonate and solid oxide. Across our carbonate platform, we have the ability to serve combined heat and power, microgrids, carbon separation, carbon capture, trigeneration, distributed hydrogen.
With solid oxide, we will be able to deliver against all of these applications I just discussed with the exception of carbon capture from an external source and trigeneration. With solid oxide, we will expand the number of applications to include electrolysis, long duration energy storage, and zero carbon power generation utilizing zero carbon hydrogen. As already highlighted, we have a number of sustainable competitive advantages. For the last six years, FuelCell Energy was locked out of the largest fuel cell market in the world. Although we terminated our relationship with POSCO Energy in June 2021, customers and prospective customers alike remain concerned given the legal dispute. We reached a global settlement with POSCO Energy in December 2021, largely putting these issues behind us. FuelCell Energy has full access to not only the Korean market, but all of Asia.
Interesting to note, our first commercial fuel cell platform sold in 2003 was a biogas platform sold to the Kirin Brewery Company in Japan. We are optimistic about the opportunity to offer our carbonate platform now that we have been able to address the market confusion. As noted in our settlement agreement with POSCO Energy, we secured a product sale commitment from POSCO for 20 replacement modules, six of which we delivered during our fiscal Q1. Our carbonate platform is well suited for the Korean market given the utility scale size of the opportunities. For instance, our technology sold by POSCO Energy is the largest fuel cell platform in the world, 59 MW. In addition, our carbonate platform has the ability to deliver high-grade heat or steam, creating a competitive advantage for FuelCell Energy versus other fuel cell platforms.
For instance, our 20-MW platform deployed at POSCO Energy delivers electricity to the grid and steam to the district heating system. Given Korea's commitment to hydrogen as represented by the government's hydrogen roadmap, we are excited to have the opportunity to fully compete in Korea offering our Tri-gen distributed hydrogen platform and our to-be commercialized electrolysis and long-duration energy storage solid oxide solutions. We have a strong defensible position bolstered by our patent portfolio, proprietary differences where we can deliver unique solutions. Unlike other clean technology energy solutions, our platform is about 93% recyclable and reused. You can't say that for wind, solar, nor lithium-ion batteries. In many markets, we have achieved an LCOE on par with the grid, and we are working on the total cost of ownership initiatives to reduce the cost of our platforms, adding to their competitiveness.
In addition, when we are able to fully exploit the features of our platforms, we compete on more than just the cost of electricity by delivering other value streams such as hydrogen, carbon separation, microgrid capabilities, thermal energy, and high resiliency and reliability. The company we keep speaks volumes to the differentiated capabilities of our platform. With Toyota as a partner, we will accelerate distributed hydrogen for fuel cell electric vehicle transportation. Exxon, Drax, and the collection of companies we are working with through the Clean Resource Innovation Network on carbon capture to leading utilities like Avangrid relying on our platform for enhancing grid reliability and resilient microgrid applications to working with Snam to ultimately delivering a hydrogen and gas blending power generation solution. We are focused on opportunities that play to our strengths.
We are extending the value of our platforms by leveraging fuel flexibility, distributed hydrogen, our microgrid capabilities, CHP, and carbon separation. All of these capabilities are enabled by our existing carbonate fuel cell platform. We are focused on delivering applications that go beyond power to meet our customer needs. We have expanded and will continue to expand our sales and marketing capabilities to engage more customers and better articulate our solutions. The energy transition is global. Our distributed platforms give us the solutions to address decarbonizing power and producing hydrogen around the world. There are no boundaries or borders in addressing climate. We spent the last two years strengthening our balance sheet, providing the ability to invest in growth. We are focused on driving operational excellence across every aspect of our business to deliver high quality, lower cost, and more efficient processes.
To support our growth strategy, adding to and strengthening our human capital is core to our execution. Today, we are finding that our purpose to enable the world to be empowered by clean energy is attracting a diverse team. The diversity of our team and our team members' ideas drive the innovation that permeates everything we do, from our current suite of products and advanced technologies to the development of industry-leading, future-focused energy platform solutions. 53 years ago, we started as a research company, and although we transitioned to a commercial products company, innovation is in our DNA and core to how we create competitive differentiation. Every platform we have deployed to date reforms air and fuel into hydrogen to produce power.
With our Tri-gen platform, we will demonstrate the ability to extract a portion of that hydrogen to deliver 1.3 tons of hydrogen a day to Toyota for use in their fuel cell electric vehicle, Toyota Mirai, and a Class 8 jointly developed truck with PACCAR. As we commercialize our solid oxide technology, we will strengthen our opportunity in the advancing hydrogen economy. We believe the efficiency of our electrolysis platform and the round trip efficiency of our long duration energy storage solution deepens where and how we can offer our solutions to the market. In February, we published our first sustainability report. We confirmed our commitment to achieving net zero on Scope 1 and Scope 2 emissions by 2030 and Scope 3 by 2050. We are aligned with the leading standards organizations and the U.N. climate action goals we can impact.
Beyond our environmental commitments, we are equally focused on our people, the people in our communities in which we work and live, and being a diverse, equitable, and inclusive organization. This commitment is shared across our company and our board. In addition, we are committed to effective governance across every aspect of our business. We extended the charter of our nominating governance committee, chaired by Natica von Althann, to include ESG. To reflect the committee's expanded charter, we changed the name to the Environmental, Social, Governance, and Nominating Committee. We will continue to report on our progress. Now I'll turn it over to Troy Michaud, our VP, Global Market Strategy and Business Development. Troy will go into a deeper dive on how we view the total available market that FuelCell Energy will pursue as the energy transition continues. Troy?
Thanks, Jason. My name is Troy Michaud, and I'm the Vice President of Global Market Strategy and Business Development here at FuelCell Energy. I've been with the company almost two years, following 16 years at General Electric and over 20 years in the energy industry. It is my distinct pleasure today to walk you through the market opportunities we have before us here at FuelCell Energy. As a stockholder, prior to my employment at FuelCell Energy, I was carefully watching the decisions and actions taken by the company, recognizing the potential it had to positively impact global climate change. Now, a member of the FCE team, I see the commitment of every employee, including our board, who are fully engaged in our efforts to prioritize and commercialize multiple decarbonization platforms. Investor interest in this topic has grown exponentially, and we know that stakeholders have lots of questions.
I'm confident that our discussion today will show why an investment in FuelCell Energy is an investment in a cleaner, lower carbon future. I'll start the conversation by highlighting the four messages you'll hear from me today. First and foremost, the energy sector is undergoing an unprecedented global transformation to decarbonize in an effort to limit global warming. Meeting net zero carbon goals will require a multidimensional strategy impacting all energy use sectors. Next, our technology is complementary to the energy transition and embraces innovation. Our portfolio of solutions are key enablers for all energy sectors on the path to decarbonize, including increased renewable generation, electrification, as well as generating hydrogen and capturing carbon for heavy industry, transport, and other hard-to-abate sectors. Next, our platforms leverage over 50 years of research and development in clean energy.
Our strong pedigree of proven solutions were developed in advance long before the current markets evolved, largely with the support of entities such as the U.S. Department of Energy. Lastly, building strategic partnerships is pivotal if we are going to meet our global carbon goals. Leveraging partnerships to co-develop and accelerate speed to market and scale is paramount. Strong tailwinds exist across the four pillars of technology we have and are developing in support of the energy transition. We believe energy transition and energy security are not mutually exclusive and see broad-based support for the adoption of renewables, carbon capture, and hydrogen as compatible means to a clean and reliable future. Evidence of this support can be seen in the European Commission recent announcement to further boost renewables and quadruple 2030 targets for green hydrogen in light of recent geopolitical tensions.
The FCE product portfolio provides optionality across all energy sectors pursuing decarbonization goals. We believe this opportunity represents a $2 trillion addressable market through 2030. Leading this opportunity is carbon capture. The International Energy Agency cites that current global capture and storage capacity of 40 megatons per annum will require growth of over 100 times by 2050 in order to limit global warming by 1.5 degrees Celsius. We believe our technology will offer a scalable and economic means of capturing carbon from external sources, given its unique ability to do so while simultaneously producing power. Distributed hydrogen, the most abundant element in the universe, is expected to be the single most impactful technology on the path to decarbonize. According to the EIA, there's no path to net zero without leveraging the power of hydrogen. Our current and future distributed hydrogen platforms are highly differentiated solutions.
We believe it is important to be able to deliver low to zero carbon hydrogen for multiple feedstocks. Tony Leo, our Chief Technology Officer, will walk us through our hydrogen technologies, including our solid oxide electrolyzer for green hydrogen. Next, the value of distributed power, both in front of and behind the meter, is at an all-time high following several extreme weather events in recent history. We believe investment in grid resiliency and energy independence will continue to grow. We offer a platform that will provide those values while lowering scope one and two emissions as we finalize the development of a zero carbon option. Finally, recognizing how far renewable energy has come over the last decade creates an incredible opportunity. However, to fully leverage intermittent renewables, long-duration energy storage solutions will be required.
We see hydrogen as the cleanest, most flexible, and cost-effective solution for storing and shifting large amounts of renewable energy. According to Wood Mackenzie, deployments of energy storage here in the U.S. nearly tripled between 2020 and 2021, with over $8 billion of investment expected by 2026. Engaging our solid oxide electrolyzer in reverse duty will provide a platform capable of storing days, months, or even seasonal amounts of renewable energy as hydrogen available for dispatch on demand. Tackling climate change is all about working together. There's no silver bullet, and we need to look at the energy transition as a collaborative effort and leverage the strengths of multiple technologies. Leveraging partnerships to co-develop and accelerate speed to market and scale is paramount in a focus of FuelCell Energy.
The technology we bring to that effort, we believe, has a strong part to play, and the geographies and markets pursuing these options are growing rapidly. Support for the transition is accelerating. As an example, in 2019, just prior to the G20, only France, Japan, and Korea had published strategies for the use of hydrogen. Today, close to 20 governments have released hydrogen strategies. The transition is taking hold, with global capacity of hydrogen electrolyzers doubling over the past five years. Looking at the broader opportunity, we are focused on high-potential geographies and markets with significant decarbonization goals. For example, this year in the United States, our administration allocated $9 billion for the development and scale-up of hydrogen and clean energy technologies.
South Korea, the largest fuel cell market globally, has announced plans to increase their utility scale fuel cell capacity to over 15 GW of clean, reliable power. Across Asia and Europe, we expect strong policy support to increase over time. Lastly, our product roadmap includes technologies positioned to have the greatest potential to accelerate the energy transition, as reported by Reuters. Our capabilities contribute to the top 45% and complement another 34%, making up the majority of the technologies poised to decarbonize across the energy industry. I'll close out by saying I'm excited for the attention the efforts to decarbonize our world is seeing and excited for the technology FuelCell Energy is bringing to the market that will help have a significant role in achieving those goals. Thank you. I'll now turn it over to Tony Leo, our Chief Technology Officer. Tony?
Thanks, Troy. Today, I wanna talk about the way we are leveraging our fuel cell technology, which has been decades in development and deployment to address the energy transition. We shipped our first commercial carbonate power platform in 2003 after a period of successful research, development, and demonstration. We have grown that carbonate technology base to include applications that are unique to our platform, like capturing carbon dioxide while making power or co-production of power, hydrogen, and water in our trigeneration system. We are leveraging that development and deployment experience as we advance our solid oxide platform for power generation, electrolysis, and energy storage. New market opportunities are emerging during the energy transition, and our broad portfolio of technologies are well-positioned to address these opportunities and support our society's decarbonization goals. That portfolio of technologies is based on two electrochemical platforms, carbonate and solid oxide.
The platforms are similar in many ways, but they also have unique capabilities. Both platforms can support power generation and combined heat and power applications from a variety of fuels, including natural gas, renewable biogas, or hydrogen blends. Solid oxide can operate on pure hydrogen fuel, which will be important as hydrogen eventually becomes more widespread as a fuel, and more near-term as we deploy technology for hydrogen-based energy storage. When operating with hydrocarbon fuels, both technologies are capable of capturing their own CO2 emissions. Carbonate is unique in its ability to capture CO2 from an external source, like a power plant or an industrial boiler. Both platforms can be used in electrolysis, which is the reverse of fuel cell operation, producing hydrogen from power. Carbonate uses a mixture of reforming and electrolysis, and solid oxide can be used for pure hydrogen electrolysis.
I'd like to talk about the advantages our platforms bring to the production of power. These advantages stem from the versatility of the platforms, which can provide a variety of services beyond power production. These are distributed platforms producing power near the point of use, and more often than not, they also provide heat to the end user customer, which is available as steam, hot water, or absorption chilling. They're often commonly deployed in microgrid applications, providing power in the event of a grid outage to maintain critical services. Deployment near the end user also avoids transmission and distribution energy losses, improving efficiency and avoiding T&D costs. This local deployment is made possible by the low noise profile and low emissions of our platforms, which make them good neighbors and make them easy to site.
They can operate on a variety of fuels, including pipeline natural gas, on-site biogas, hydrogen blends, or a variety of other fuels. The platforms are also uniquely capable of carbon capture and carbon separation for further emissions reductions. Hydrogen will play an important role in decarbonizing industry, mobility, and power. No single hydrogen technology will be perfect for all applications, so we approach hydrogen with a portfolio approach using a mix of technologies based on our carbonate and solid oxide platforms. Our solid oxide platform has demonstrated very high efficiency in electrolysis, where power is used to split water into hydrogen and oxygen. This high efficiency reduces the cost of hydrogen, which is dominated by the cost of electricity in electrolysis applications. The high efficiency can also reduce the carbon footprint if the electricity source is grid power with non-renewable sources in the grid mix.
Our Tri-gen platform uses fuel such as natural gas or renewable biogas to produce power, hydrogen, and water. It uses the exact same internal reforming feature that takes place in all our power platforms to convert fuel to hydrogen in the fuel cell stacks. But in this case, some of the hydrogen is collected and provided to a hydrogen user. It is a cleaner and more efficient way to make hydrogen than conventional reforming, producing a lower carbon footprint even when using natural gas fuel. The co-production of power and water with hydrogen makes this platform a good match for applications with higher power costs because that increases the power sales revenue and applications with water supply restrictions. These are key aspects of our first commercial scale Tri-gen project, which we are doing with Toyota at the Port of Long Beach, California.
This port facility is where Toyota is bringing in their Mirai fuel cell vehicles, which need to be fueled before being delivered to dealers. Toyota is also demonstrating the use of hydrogen fueled heavy duty trucks at this location, which they are developing with the Kenworth division of PACCAR. The Tri-gen system we are installing now at the port will use digested renewable biogas and produce up to 2.3 MW of renewable power, meeting Toyota's power needs with any excess being sold to the utility under a biogas feed-in tariff. The system will produce up to 1.3 tons a day of renewable hydrogen for Toyota's vehicle fueling operations. As an added benefit, the system will produce up to 1,400 gallons a day of clean water, which Toyota will use for car washing.
This is especially valuable as Long Beach is impacted by the continuing drought situation in California. For further perspective on this project and on Toyota's view of the hydrogen landscape, I'd like to introduce Craig Scott, Group Manager at Toyota North America.
Craig Scott. I'm the group manager of fuel cell solutions at Toyota Motor North America. Our goals have always been very clear, and that is decarbonizing our vehicles at the tailpipe. Toyota and FuelCell Energy started working together several years ago, and really that's comes out of the understanding that both parts of the equation are needed to solve the puzzle. Toyota brings vehicles that produce no emissions to the equation, and FuelCell Energy, through their trigeneration technology, brings 100% renewable fuel. In this case, we use 100% renewable hydrogen to power our cars and our trucks at the port, and we also use that 100% renewable electricity to make our facility entirely green.
FuelCell Energy is helping to enable a transition to carbon neutrality through their efforts around trigeneration technology. Bringing 100% renewable fuel, be it hydrogen or electricity, to the table is really what allows the vehicle to operate in a completely well-to-wheel emissions-free operation. Toyota's goals at our Port of Long Beach operation are to demonstrate that we can not only produce cars that are 100% zero emission, but we can also transform our operations into a green and sustainable 100% renewable powered operation. We are going to use FuelCell Energy's trigeneration technology to produce renewable hydrogen for our vehicles, and we're also going to use that same technology to produce enough power to run our facility on 100% green electrons.
FuelCell Energy's Tri-gen technology is really instrumental in helping this transition move faster. Being able to locally generate and distribute renewable hydrogen for consumers not only makes it lower cost, but also makes it more convenient and more accessible.
Thanks, Craig. In addition to trigeneration, we are also developing solid oxide-based electrolysis. This technology can have impact across a range of project scales as illustrated here. From distributed applications like local production of hydrogen for a vehicle fueling station to very large-scale systems for hydrogen production from large-scale renewables or nuclear power. The main attractive feature of solid oxide electrolysis is the very high electrical efficiency. The chart on the left compares solid oxide electrolysis efficiency to conventional low temperature electrolysis. Compared to 65%-75% efficiency for conventional electrolysis, solid oxide electrolysis can operate at 90%+ electrical efficiency. The picture at the lower left of this slide shows a fully contained demonstration system operating at our facilities in Danbury. We have demonstrated electrical efficiency above 90% in this system.
Some of the small inefficiency in the system relates to heating and vaporizing water, and we monitor these loads to see what the effect would be if we had a source of external heat for these operations. We believe that the electrical efficiency can be driven to 100% or even better with the use of waste heat. We aren't violating the laws of thermodynamics, just replacing electrical energy with thermal energy when it's available. Since our solid oxide platform can efficiently produce hydrogen and can also efficiently use hydrogen to make power, it makes sense to think about it as an energy storage platform. In the concept shown here, the system produces hydrogen from water in electrolysis mode, which is stored as compressed gas. This is the charge cycle of energy storage.
When power is needed, the hydrogen is sent back to the same solid oxide stacks, which produce power in the discharge cycle. The fuel cell reaction produces water, which is stored for use in the next charge cycle. The advantage of storing energy in this hydrogen-based system can be illustrated by comparing with a conventional battery. If you have a one-hour battery but want that same power over 10 hours, you have to buy nine more batteries. To increase the discharge duration of this hydrogen-based system, you just need to add inexpensive hydrogen storage and water. While batteries are still great for short-duration applications, when you think about the long discharge durations that will be needed to incorporate much greater penetration of intermittent renewable sources on the grid, hydrogen-based energy storage makes a lot more sense, and it does not depend on limited quantities of mined minerals.
Our five decades of fuel cell system development have led to a broad portfolio of solutions that will play key roles in the energy transition. We are the only company providing carbonate solutions in the world, leveraging the unique capabilities of that platform to provide effective approaches to power generation, carbon capture, and hydrogen production. Our solid oxide technology has benefited from the decades of carbonate work, and it has advanced to the point where we are developing solutions for power generation, hydrogen production, and energy storage based on the unique capabilities of that solid oxide platform. These technologies have been developed with a focus on market economics, leveraging the high efficiency of the platforms with the added value streams the platforms can provide, such as thermal applications, carbon capture, and hydrogen production.
Just as our platforms help our customers meet their sustainability goals, we focus on sustainability in the development and production of the platforms. More than 90% of our products can be recycled or reused at the end of the product life. We are ISO certified for our environmental management system. We are committed to a 2030 net zero target for Scope 1 and 2 emissions. Diving a little deeper into carbon capture, one thing to point out is that there are two aspects to carbon capture with respect to our platforms. Because we react fuels differently than thermal generators, we do not mix fuel with air before we use it to make power. So when CO2 is created in our platforms, it's relatively easy to capture and export that CO2. This ability to capture the CO2 associated with the platform itself is what we call carbon separation.
This does not involve any new technology and is a product option that is commercially available today. This product feature can be used to provide on-site carbon dioxide for industrial or food and beverage applications, significantly reducing the carbon footprint of the platform. In addition to this carbon separation feature, our carbonate platform can capture CO2 from an external source, a result of the unique electrochemical process behind carbonate fuel cells. Unlike virtually every other carbon capture approach, our carbonate platforms produce power while they are capturing carbon. Our carbon capture technology is under development and is the focus of a joint development effort with ExxonMobil Research and Engineering. For some perspective on this exciting effort, I'd like to introduce Scott Darling, Vice President, Finance, Marketing, and Commercial Development for ExxonMobil Low Carbon Solutions.
Thank you, Tony. My name is Scott Darling, and I'm part of the leadership team at ExxonMobil Low Carbon Solutions. Along with my colleagues in R&D, we've been working with FuelCell Energy for nearly a decade to advance carbonate fuel cell applications for carbon capture. ExxonMobil and FuelCell Energy both expect society's net zero ambitions to accelerate decarbonization efforts, particularly in energy-intensive industries. We believe carbon capture utilization and sequestration, or CCUS, will be an essential technology to help meet these ambitions, and we're not alone. Renowned experts such as the IPCC and the IEA agree that CCUS is one of the most important low-carbon technologies to achieving society's climate goals at the lowest cost.
CCUS is also one of the few proven technologies that could enable some of the highest emitting sectors to reduce emissions, such as manufacturing, power generation, and heavy industries like refining, petrochemical, steel, and cement. ExxonMobil has captured more anthropogenic CO2 than any other company and will continue to play an important role in bringing CCUS technology to scale because of the breadth of our experience and our collaboration with partners like FuelCell Energy. We're evaluating multiple CCUS opportunities around the world while simultaneously working on a portfolio of solutions to reduce costs and enable the widespread deployment of CCUS. We've been working with FuelCell Energy since 2012 on a technology to improve the efficiency, the effectiveness, and affordability of carbon capture.
ExxonMobil believes carbonate fuel cells have the potential to be a critical piece of the CCUS suite to address the net zero ambitions of governments and companies alike. Fuel cells are modular, which provides optionality to size the platform for each unique installation. FuelCell Energy carbonate fuel cells produce power while capturing CO2, which is unique to the chemistry that underpins this particular fuel cell. We're looking forward to exploring options with FuelCell Energy to soon conduct a pilot test at our Rotterdam facility in Europe. ExxonMobil is proud of our long relationship with FuelCell Energy, and I appreciate the opportunity to speak with you today. Now, I'll turn it back over to Tony.
Thanks, Scott. The work we're doing with Exxon is focused on developing product improvements that optimize our platform for carbon capture. The stack modules we produce today that do not yet include those improvements are still capable of capturing carbon, just not at the higher rates we hope to do with the improved systems. These modules are viable platforms for near-term projects with very high CO2 capture value and for demonstration projects. One of the projects that we're developing involves a carbon capture demonstration at an oil and gas facility in Alberta, Canada. The project participants include Canadian Natural, Suncor Energy, Cenovus Energy, Chevron Canada, and Shell Canada, along with support from Emissions Reduction Alberta. Here to give his perspective on the project is Simon Davies, manager of greenhouse gas projects for Canadian Natural.
Capturing and sequestering CO2 is key to our aspiration for net zero emissions at our oil sands operations. Commercial technologies require a significant amount of energy and cost. The energy consumption is the challenge. It means a significant operating cost and additional greenhouse gases that get emitted. To address the problem, we've identified molten carbonate fuel cells as a potential game-changing solution. Molten carbonate fuel cells will capture CO2 from a flue gas without generating new greenhouse gas emissions. In fact, it's a win-win because molten carbonate fuel cells will also generate some electricity without additional greenhouse gas emissions. The collaborators that we have, from technology clean tech is FuelCell Energy. This technology is the world's first demonstration of molten carbonate fuel cells capturing CO2 from a flue gas stream, which demonstrates Canada as a leading player in the clean tech innovation space.
Canadian Natural is a part of the Oil Sands Pathways to Net Zero alliance, and this alliance has an aspiration to achieve net zero by 2050. This technology could play an important part in being able to achieve that net zero. It's also not just applicable to the oil and gas industry. It could be used for any industry that has CO2 to capture from an exhaust gas stream. In addition to that, many industries consume a significant amount of electricity, so this technology could be a good fit for them. For me personally, this is the culmination of six years of work on the technology, starting from studies on understanding the technology and its benefits right the way through to where we are today. Beyond, we're excited to see how it could play out in deployment at our operations.
When we think about the opportunity presented by these carbon capture, hydrogen, and power technologies, it is important to note that we have extensive development facilities and a strong base of talent working on them. We are actively expanding our technical teams and increasing our investment in efforts to commercialize these technologies. These expanding development investments are focused on improving our current products, such as extending stack life, adding features, and also developing the next generation of products that will address energy transition opportunities in carbon capture, hydrogen production, and energy storage. Our carbonate power platforms have been commercially available since 2003. The Toyota Long Beach project is our launch project for our commercially available trigeneration platform. Our solid oxide platforms are in the demonstration phase, and we look forward to their commercial availability in the future.
As we continue the development of our next generation carbon capture technology, we are planning demonstrations such as the Alberta project we mentioned earlier, based on our current generation modules to highlight the unique benefits of this approach to carbon capture. This is an exciting journey with valuable societal benefits as we provide cost-effective, sustainable technologies to support the energy transition. With that, it's now time for our first question and answer session.
Well, it's certainly been an action-packed morning, and we thank you for sticking with us. Hopefully, the first half of the program proved to be quite informative. We have compiled a list of questions that we've received during the broadcast so far, and we're gonna dive right into the question and answer. The first question we got is around our solid oxide technology, and that it seems to be quite a differentiator and quite a growth opportunity for us. What can we talk about the timeline of development and what we're specifically focused on in 2022?
Tom, I'll take that question, and thanks for watching. What we think about with our solid oxide and the timeline, we are in the demonstration phase right now. We have demonstrated the power generation application. We are currently demonstrating the electrolysis application here in Danbury and getting ready to do a demonstration at Idaho National Labs later this year. As we do those demonstrations, we're expanding the production capacity for solid oxide cells that we have up in Calgary, and looking at other expansion opportunities as well. We're essentially matching that with the market pull that we see to develop that timeline. More to come on the specifics of the timeline, but we look forward to seeing that timeline evolve. Thank you.
Thanks, Tony. The second question we have regards the disclosure around a $2 trillion total addressable market the company disclosed today, and it's really made up of four areas. Is there anything that the company can tell us about the materiality that each one of those areas might have for the company or the ability for the company to gain meaningful market share in one versus the other?
Tom, thank you for the question, and thanks to the investors for these questions and for joining us today. We think as you look at the total $2 trillion TAM that we laid out today, we think there's clearly a momentum around carbon capture and hydrogen. When you think about those two pieces and you look at our technology, we think we have unique capabilities across both of those that position the company quite well to actually deliver competitive solutions against both of those applications. If you think about carbon capture, we're the only technology in the world that we know of that has the ability to capture carbon from an external source and produce more power and hydrogen at the same time.
In addition to that, we have the ability to capture carbon from our own platform and deliver that carbon, again, for either sequestration and/or for use as an ingredient, whether that be in making cement or concrete to actually processing food, as we talked about a little bit earlier. When you think about hydrogen, our unique capabilities with distributed hydrogen, like we're exhibiting at our Toyota project, where we're delivering hydrogen, power, and water from a single platform, which again, no other platform that we're aware of can do.
Secondly, when you think about electrolysis and the efficiency level of our platform, as Tony talked about, with the high level of efficiency that we have, the fact that we're a high temperature fuel cell, meaning that we can actually leverage waste heat to deliver up to 100% electrical efficiency, we think positions us quite well and favorably versus other technologies in the electrolysis space such as PEM and alkaline technologies. As you continue to see more penetration of renewable energies, we strongly believe that a long duration energy storage solution is needed. We think a hydrogen-based solution is superior to that of a mineral-based solution. With a hydrogen-based solution leveraging electrolysis. It's local, it's regenerative. It doesn't rely on the same set of mining issues or geopolitical issues that you have with technologies such as lithium-ion batteries.
You can store in virtually endless capacity, whether that's in, you know, this traditional way we store natural gas today, like in salt caverns or in pipelines or in pressurized tanks. A number of ways in which you can store that technology and then reverse that hydrogen later to produce power. With respect to the other two areas, distributed generation, we think energy security, reliability, and resiliency is gonna continue to be an important theme. We see what's happening around the world today, and it couldn't be even more important, just the whole subject around energy security, resiliency, and reliability. The fact that we can deliver utility-grade, utility-scale platforms into urban centers where the power demand actually exists, and do that with a clean baseload platform, we think gives us an advantage as a company.
When you think about either distributed generation or distributed hydrogen, like we're doing at Toyota, you think about carbon capture or you think about electrolysis and long-duration energy storage. We think, as a company, we're well-positioned across all four of those. What we really like about our company is the optionality that we have, depending on how the adoption curves for each one of those technologies evolve over the various markets in which we participate. You know, as we look at the categories themselves, we're really excited about hydrogen and carbon capture.
Great. Thanks, Jason. The next question actually kind of pivots off of that and is more of an industry question. What is the hydrogen industry doing to join more currently the conversation and the debate between fossil fuels and the alternative energy of wind and solar? What needs to happen, and what do you expect, and what are you seeing?
Well, I think you're seeing a lot of momentum, not only in the U.S., but across, the E.U. and in Asia, where you're seeing strong support from a policy perspective to actually try to do what you saw happen in the wind and solar industry, to have strong policy support to help companies like ours scale in order to bring down the cost curves to where hydrogen becomes a competitive alternative to more traditional fossil fuels. One of the great things about hydrogen is, unlike any other alternative energy source that we're talking about today, it is the one source that can really replace and/or add to traditional fossil fuels. If you're talking about high-grade heating needs that you need, hydrogen can play that role. If you're talking about transportation, hydrogen can play that role for fuel cell electric vehicles or for marine-based applications, as an example.
When you talk about industrial processes like steelmaking or really hard-to-decarbonize industries, hydrogen can play an important role in helping to decarbonize industries you can't really electrify. We think as more government and policies do things that are constructive for companies like ours to invest and lean forward on technologies to deliver hydrogen, we think that's gonna create more movement in creating a hydrogen economy. We certainly think that what we see happening around the world today, the increase in the conversation around moving to renewables or cleaner energy faster, we think that's gonna help accelerate the timeline for hydrogen.
Great. Thanks, Jason. The next question is really best answered by Tony. We just achieved a technical milestone under the joint development agreement with ExxonMobil. What does it mean in the larger context of FuelCell Energy commercializing its carbon capture technology, and the overall commercial push behind that?
Yeah. Thanks, Tom. As I mentioned in my presentation, what we're doing with ExxonMobil is increasing the amount of power that we can get out from our carbonate platform while we capture carbon. We can capture carbon today and make a certain amount of power, but the more power we can make, the more revenue you can generate, and that reduces the cost of capture. We set a milestone in the project, and I won't get into the specifics, but it basically targeted a certain amount of increase of power output from the cells while they were doing carbon capture, and we hit that. What that means is that while our current platforms are good at capturing carbon, the improvements that we've demonstrated in the ExxonMobil project make them even better. They can make more power while they capture carbon, and that improves the economics of the capture.
Thanks, Tony. The next question really regards our Tri-gen technology. It's long been known that we're working on a project at the Port of Long Beach for Toyota, and the question is really around the opportunities that exist beyond that project and what needs to happen in order for commercial success to take place for the Tri-gen technology.
Well, I can say that project itself is generating a lot of interest in that Tri-gen technology. We demonstrated the Tri-gen technology at a sub-megawatt scale quite a number of years ago. This first commercial project is being looked at by a lot of people that are interested in the technology. The prime reason, as I think I alluded to, is that these different hydrogen technologies play in different markets. If you're in a market with expensive power that might drive up the cost of electrolysis-derived hydrogen, that's a negative. On the other hand, that expensive power with the Tri-gen is added power generation revenue, plus the fact that you have water generation. We fully expect to see a lot more interest in the Tri-gen platform once the Toyota project starts operating.
Great, Tony. Don't hand the microphone over just yet. You're definitely the focus of this question and answer session. The next question is around the commercialization of our solid oxide, but more specifically, there is a competitor out there that already uses that same technology. What are some of the advantages that FuelCell Energy feels its design has that will be compelling to the marketplace?
Well, I think a lot of those advantages stem from our legacy of accomplishment on with the carbonate platform in areas such as onsite biogas utilization and in areas such as various different uses of the waste heat from the fuel cell. These are things that we think will be unique as we enter the market with a carbonate, with a solid oxide power generation system because we'll be able to leverage those unique capabilities. For example, our unique onsite biogas cleanup technology and these will be unique aspects of our version of the solid oxide.
Okay, great, Tony. Thank you. You can pass the microphone to the other side of the seated audience there. We're gonna dive into a little bit of South Korea, and that there was recently a presidential election there and was wondering if there's any sort of change of outlook, good or bad, as it relates to the South Korean market. We've clearly expressed a lot of enthusiasm for the South Korean market. The second part of the question is: what other areas or trends beyond South Korea gets the management team most excited?
When we think about South Korea, you know, we are actually excited about the new election because we think that there's gonna be a consistent theme in South Korea around FuelCell Energy being a very important part of the energy mix. In fact, their current roadmap lays out, you know, upwards of 15 GW of FuelCell Energy power. When you think about what the roadmap that they have for hydrogen lays out around vehicle transportation for fuel cell electric vehicles, well over 6 million cars, they've got to, you know, to the tune or neighborhood of 1,600 or so hydrogen fueling stations. We think those are all positive. We also think as it relates to relationships with Korea and the U.S. more broadly, there's gonna be strong support, you know, with free trade and how we work in that country.
We think the change in administration will be a positive. You know, not that the what was the administration there before was also very constructive to fuel cells. We also believe that with our ability to be back in the Korea market and to leverage our technologies where we think we have strong differentiation compared to the competitive set, those all bode very well for us as a company. We're excited about the prospects going forward in Korea and across Asia more broadly. You know, as I indicated in my earlier discussion, our first commercial project as a company was actually in Japan, so we're excited to be back there, and it was leveraging biofuels. We've been doing biofuels for a long time as a company, so we're really excited about that.
Thanks, Jason. Actually jumping off of the last point you had about biofuels, the next question is actually project specific related to the Toyota project and the fact that we are using biofuels to power, to fuel that project. The question was more around the line of securing that biofuels given some of the recent disclosure we had that it's not been procured at this time.
Look, when you think about the Toyota project, no question, there is plenty of RNG in the California market. We are working through the best way and best sources for that RNG for our project. But key to our project, right, are the key benefits that you get from our Tri-gen platform. Number one is we're gonna be utilizing clean fuel to deliver green hydrogen. We're gonna be delivering carbon neutral power as part of that platform as well, and water to an area that's suffering from drought conditions. We're excited about that. We know how to manage these kind of processes. As I've said, we've been dealing with biofuels for a long time, and we're working through a number of different options around sourcing biofuel for that project.
You know, we remain committed to delivering green hydrogen, carbon neutral power, and water as part of that project.
Okay, great, Jason. We're down to our last minute here, but to make Mike Lisowski join the conversation, so he's just not sitting up here for no reason. Given the current events that are going on, can we discuss the exposure to rare earth minerals that FuelCell Energy may have, or if the sanctions to Russia have any impact on our business?
Thank you, and good morning, everyone, and thank you for joining Investor Day today. We currently do not source any materials, direct materials or indirect materials from Russia. With respect to rare earth minerals, we use a very small, insignificant portion in both our carbonate and solid oxide platforms. We have a very stable supply chain established, a well-balanced supply chain, and feel very confident about our ability to satisfy our needs from a production standpoint and demand standpoint and continuity of supply.
That's great, Mike. With that, wraps up our first question and answer session, and we invite you to stay on. We have a five-minute intermission here, and we look forward to rejoining you with the second half of our program. Thanks.
Welcome back. Hello, my name is Michael Lisowski, and I am the Chief Operating Officer with FuelCell Energy. Thank you in advance for a few minutes of your time today. I'm excited and proud to talk to you about FuelCell Energy's operational value chain, the work we are focused on, and operational excellence. We have a proven integrated operating model with demonstrated capacity to develop, build, and commission multiple customer platforms concurrently on a global basis. Options include contract manufacturing outsourcing opportunities, partnerships, and strategically developing localized content in regions close to our markets which support further supply chain efficiencies. I would like to start with an overview of some of our key attributes and core competencies, our underlying set of capabilities around manufacturing. First, our established fuel cell manufacturing expertise is based on decades of proprietary knowledge.
Continuous improvement is a deep cultural aspect across our company and is evident in our functional teams and the way we approach all of our work. We have more than doubled our production output since 2020. We continue to optimize the efficiency of our operations and carefully planning scaling our manufacturing capabilities to meet expanding demand. We have the flexibility to scale our carbonate and solid oxide manufacturing capacity and have demonstrated our ability to expand manufacturing both domestically in the U.S. and globally. Further, we are actively evaluating a series of options for scaling our operations as we drive towards commercialization of our new product technologies. Next, I would like to provide you with a high-level overview of our integrated operations value chain. Our objective of conversion of backlog to revenue is the overarching principle of our operations emphasis.
This, with the pinnacle of focus being the safety of our team members and ensuring a safe work environment wherever that may be, with uncompromised quality and velocity of throughput, all with the objective of satisfying and meeting our customers' and stakeholder expectations. Our operating model and process begins with executing commercial design and product release through our staged gate product commercialization process led by our commercial engineering team. From initial customer engagement through review and solidification of customer requirements, we are continuously focused on maximizing our value contribution to our customers in delivering a durable platform solution that solves the energy-related challenges that they face. The supply chain organization leads a rigorous supplier direct material qualification and approval process, ensuring our supply chain performs to key performance metrics, including quality, delivery, cost, and continuous improvement.
Our supply chain organization also proactively monitors our suppliers, and we have a robust supplier risk mitigation program to identify, mitigate, and eliminate potential threats and risks to supply continuity. Our manufacturing team has developed and deployed an integrated manufacturing operation for our core SureSource technology while leveraging contract manufacturing for mechanical equipment and turnkey manufacturing partners for our electrical equipment. The project management team leads and drives on-site project execution, including electrical and fuel interconnection agreements, project permitting, and coordination of all equipment deliveries. We have an established network of qualified construction service firms we engage to perform site civil construction through substantial completion and subsequent commercial operations. Immediately upon achieving commercial operation, our Global Monitoring and Control team, or GMCC as we call it, which is part of our service operations team, begins 24 hours a day, seven days a week monitoring.
On-site preventive maintenance and platform upgrades are performed by our integrated field service team members who are geographically located regionally near our project sites and markets. I would like to now provide a little more granularity regarding our existing manufacturing footprint. As mentioned, we have developed and deployed an advanced manufacturing process where we have employed state-of-the-art manufacturing equipment and processes to manufacture our core technology. Our manufacturing operations are led and operated by a passionate, experienced global team dedicated to advancing production efficiency and operational excellence. Pictured on the lower left is an image from our North American carbonate manufacturing facility, where we are optimizing 100 MW of annualized capacity. Further, we have a European manufacturing operation located in Taufkirchen, Germany, just outside of Munich, which has sub-megawatt carbonate manufacturing capability.
Pictured on the lower right is an image from our solid oxide manufacturing operations located in Calgary, Canada, where we are currently scaling up production capacity. I want to take this opportunity to highlight a few key aspects of our company culture of continuous improvement. Our collective attitude and actions are squarely focused on the pillars of excellence, always starting with safety. As reported in the chart on the top right, our experience modification rate, or EMR, our historical cost of injuries and future risk profile, consistently tracks below the NAICS industry average. We have a robust corporate-wide quality management system and program whereby quality is designed into our products, our processes, and across all operational functions. Lean is embedded in our way of thinking and overall way of operating across FuelCell Energy.
We tirelessly look to refine our processes and operations, and we aggressively look for opportunities to reduce and eliminate waste. Realization of the value contributions to waste reduction is highlighted on the chart in the lower right. As we have increased our manufacturing production rate, we have continued to significantly reduce our waste streams. Lastly, we continue to lead when it comes to environmental stewardship. We recently achieved our ISO 14001:2015 Environmental Management System certification. As mentioned previously, by design, we like to refer to our product lifecycle analysis as cradle to cradle, as approximately 93% of our product platform can be recycled and reused at the end of the asset's life. Next, I would like to highlight a few key aspects of our established qualified supply chain.
Centered primarily in the domestic United States, we take a real sense of pride in the strength of our supply chain relationships and the ongoing strong performance of our extended supply network. We have a rigorous stage gate supplier qualification approval process before introducing any supplier material into our production stream. We invest significant time and resources to identify, develop, qualify, monitor, and maintain our valued supply partnerships. We view our suppliers as an extension of our company and have a strong track record of supply continuity throughout a host of macro and geopolitical headwinds. As I briefly mentioned, we carefully monitor a spectrum of potential threats and risks to supply and have implemented a variety of countermeasure strategies and tactics for proactively addressing and mitigating risks.
Based on years of experience and solid foundational relationships, we have a high degree of confidence that our current and ever-expanding supply chain network is well-positioned to scale ahead of our demand curve in support of our future business growth. Despite global events, we are currently not experiencing any supply chain disruptions. Our SureSource platforms do not require an on-site operator. Ongoing performance monitoring and operation of our global fleet is remotely and centrally managed at our GMCC, located domestically in the United States. When preventive maintenance is needed, the GMCC coordinates and dispatches our regionally located field service team members to the project site to execute physical work. The global fleet is continuously monitored and controlled for optimized performance. Our teams are driven and actively working to innovate continued performance improvements and executing platform upgrades to legacy equipment. We are unified and focused around project execution of our backlog.
We continue to expand our qualified EPC network and are actively making process improvements, streamlining execution planning, and broadening our project management talent bench strength. I would like to take this opportunity to highlight a couple of recent photos from the SureSource Tri-gen plant in construction being built at the Port of Long Beach for Toyota. The following brief time-lapse video displays the site construction progress we have made since mid-December 2021. The bottom line is we have an experienced and passionate team that we are continuing to build upon with increasing talent depth. We have continuous improvement in our DNA, and we are committed to ensuring maximizing our operating leverage to improve performance. Our existing and proven North American production facility with over 100 MW of integrated capacity has the footprint and capability to scale to 200 MW annually.
We will continue to actively manage and measure our supply chain, ensuring our supply network remains robust and with supply capacity to support our business growth. We are going to continue our thoughtful work around efficiency optimizations across our operations and leverage our existing facilities to support effective scale-up and capacity expansion. We have a proven replicable production system design for our carbonate platform. We are actively working to advance our solid oxide production system in support of product commercialization. We are going to continue to leverage leading-edge technologies, advanced manufacturing automation where appropriate, and optionality in areas that are supportive of increasing scale with velocity. Bottom line, FuelCell Energy has the experience, the broad set of skills and talent and infrastructure to scale operations in support of near-term business growth.
With that, I would like to turn the presentation over to our Chief People Officer, AJ, who is going to provide some more details on how we think about our human capital strategy. Thank you.
Thank you, Mike. Hello, my name is Andrea Jones. However, I do go by AJ. As you have been hearing from my colleagues, I am the new Chief People Officer, and I have been here just over six months. I came to FuelCell Energy to leave a legacy and support building out a human capital infrastructure. Just to give you some background on my professional career, I have worked in manufacturing for 15 years with an emphasis on lean manufacturing, both back office and production, which has helped shape how I think about human resources as an enterprise-wide support function. That said, I hope that you come away fully understanding our human capital ambitions, for which I will cover some key themes. This brings me to my second point as to how I'm thinking about HR infrastructure to really enable the business to move faster.
We are aggressively addressing the current workforce trends by ensuring our brand and organization become the employer of choice as a way to attract top talent, but also retain our existing team by continuously improving our policies, procedures, and overall environment in this new norm. It also sets us up for the next generation that is coming into the workforce, which will soon become the majority of the labor market. Lastly, we believe that we have an inherent purpose-driven organization that gives us a competitive edge among other manufacturing companies, as we believe we are enabling a world empowered by clean energy. In the coming slides, I will briefly describe some of the initiatives currently underway. As you've heard from my colleagues and the aggressive targets in front of us, the question immediately comes to mind, how are we going to support the human capital to execute our plan?
I am now going to walk you through my approach to address those needs. I first want to say that we are on a journey, and building an infrastructure does take some time to get it to a desired state. However, I want to review our step change over the next one to two years based on four key initiatives of HR transformation, recruitment and selection, human capital initiatives, and living our values committed to inclusivity. First, HR transformation, which is truly aligning the HR team to be more strategic business partner by streamlining our processes to be automated so the team has more time devoted to supporting the business. Second, as we are coming off the pandemic, we are finding new ways of hiring by thinking differently about how we source our talent.
For example, we are screening more talent in than we are out by looking beyond the standard career paths, focusing on skill-based hiring to widen our labor pool, which ultimately increases our diversity. These are just a sample of what we are embarking on, and more color will be provided in the slides to come. Third, our human capital initiatives that support our workforce expertise through a pragmatic performance and talent management process that ultimately ties to pay-for-performance model. Fourth, and these are not in order of importance, is our culture. We strive to stay committed to our values of inclusion and innovation by staying disciplined to our objectives as we continue to grow. With all that said, we have also outlined an HR mission statement to be our North Star that will guide us daily.
Delivering clean, innovative solutions one employee at a time by enabling a work environment that stimulates passion, collaboration, engagement, and speed to ensure a performance-based culture built upon a total rewards program with three main goals. One, attracting and retaining the best talent is paramount to our success because no matter how great our strategy is, our people are our greatest asset. Two, winning as a team, it goes beyond our four walls, and we have a number of activities we are actively working on to ensure that we bolster our corporate social responsibility in the communities in which we operate in. Lastly, our alignment of employee and shareholders mutual purpose. We know we are competing for shareholders, and as such, we are tying our compensation structure that will mirror what our shareholders expect, as this is truly a partnership between you, the shareholders, and our team to win.
Now, I will do a deeper dive on these four initiatives I highlighted earlier. Our method of attracting and retaining the best talent have expanded beyond the traditional methods of hiring. We are working with local schools for apprenticeships, community college outreach, and partnerships with universities. We are also increasing our visa sponsorship for non-U.S. citizens, and we have a dedicated hiring team for our engineering positions and production staff. Lastly, a more agile process to hiring using a daily management approach. In support of our growth initiatives, HR is closely aligned to the various functions and their need for human capital. We are creating recruiting toolkits for our management team that focuses on interview training that is skill-based and behavior-based to ensure we have the right talent that will propel us forward and be future successors to our leadership team. Why do people choose FuelCell?
Well, for many reasons, but first of all, we are innovative. When we ask our team to sum up our culture in one word, the overwhelming comment is innovation. We provide a flexible work environment by offering a hybrid work environment that is more amenable to families today. This is a place where people can really accelerate their career by being nimble, where people can truly grow at a much faster pace than any other organizations much larger than us which brings me to our people approach. We are hyper-focused on our talent, and as we believe that people can truly grow their career, and as a leadership team, we strive to keep an environment that is rich in learning and deep in meaningful work. Part of this process, we are rolling out individual growth plans that tie to more job experiences.
As you know, the way adults learn is by three different methods using the 70/20/10 development model. This method helps our team focus on tangible things they can improve on as they go through their career. The 70 equates to 70% on-the-job training. The 20 is 20% mentoring and coaching, and 10% is really tied to training. I'd be remiss if I didn't talk about our highly technical talent. We are in the process of creating a technical career path that is available for those that do not want to go down a manager path, but rather deepening their technical skills to be subject matter experts in their field that is more prestigious and patent-driven. We have also modified our compensation structure that reflects more ownership in the company by providing more shares to lower-level positions in the organization.
We are working through our compensation structure to ensure we are tied to market value of the jobs and leveling wherein people have more promotional opportunities. We are continuing to develop a rewards and recognition program that is tied to our key objectives and pay-for-performance model. Our benefits mix is also an area of opportunity that is prime for modernization in this new norm we all find ourselves in. We are aggressively benchmarking our competition in the locations we operate in as the labor market has drastically changed and the needs have changed. We offer a flexible work environment, remote work, and tuition reimbursement to name a few, which brings me to our journey to best in class. Today, we have footprints in four countries and are proud of our educated workforce.
This helps us create an inclusive work environment that stimulates passion for our purpose through multiple diverse channels other than someone's race or ethnicity. Through education, growing up in different regions, living different experiences help us shape our workforce to bring different perspectives to overcome obstacles. However, we have only just touched the surface on diversity. We are in the process of developing a diversity diagnostic assessment that will help us understand where we need to improve. Other than our need to attract more people who identify as female, we plan on tying this commitment to our compensation philosophy, so we reward the right behaviors as a way to pay it forward and achieve our mission as the most diverse FuelCell Energy team.
Additionally, we are rolling out unconscious bias training to ensure we do our part to break the biases, to establish a working environment that people can bring their whole selves to work. As a female leader in this organization, I can attest that I bring my authentic self every day to work because we have an environment where people feel safe to be themselves. A few items that we are embarking on this year are creating affinity groups, celebrating the Black, Asian, Hispanic, and LGBTQ communities. As we are all different, we are united in one purpose, which is to enable the world empowered by clean energy. I will now turn it over to our CFO, Mike Bishop.
Thank you, AJ. Good morning. I'm Mike Bishop, CFO of the company. I would like to thank everyone for your participation today and hope that our team has conveyed the passion we have for our company and its purpose. As the last presenter today, I would like to walk you through how we are planning and executing from a financial perspective.
Today's key messages are we have transformed the balance sheet since the implementation of our Powerhouse business strategy. We have multiple sources of funding resulting in strengthened financial liquidity. We have a strong backlog with recurring revenues from long-term contracts with tier one customers. We're also targeting increasing product sales in the U.S., Asia, and Europe, bundled with long-term service contracts. The company has a strong financial foundation expected to enable us to grow, scale, and innovate while exploring strategic opportunities for partnerships. We will be very thoughtful about allocating capital to fund the next phase of growth aligned with the addressable market opportunity. The company has transformed the balance sheet over the past two years. In 2021, we paid off debt and a preferred obligation from the corporate balance sheet.
We reported our Q1 results last week and have approximately $405 million of cash as of the end of Q1 2022, of which $377 million is unrestricted. We have well-established relationships with many financing providers, including bulge bracket banks. We continue to expand sources of liquidity as evidenced by the recently completed tax equity transaction on our LIPA Yaphank project, and this liquidity provides the company with the flexibility to scale our operations and make investments in commercializing technologies as well as sales and marketing. An example of where the company has invested its liquidity is our project asset generation portfolio in order to build out a meaningful asset base with long-term recurring revenues from tier one offtakers.
As I mentioned on the prior slide, as projects go online, we're able to bring in project financing in the forms of tax equity or debt to recycle capital back into the business. As of the end of the first quarter of 2022, we have invested $256 million into our generation portfolio. These investments in our generation portfolio that I just discussed are supported by a strong backlog, which totaled about $1.3 billion as of the end of the first quarter of 2022. The largest portion of our backlog, represented by the purple bar on the chart on the left side of the slide, is our generation backlog at approximately $1.1 billion. The chart on the right demonstrates the growth of the operating portfolio, which generates recurring revenue.
Our operating assets generated approximately $24 million of revenue last year. As you can see by the darker blue bars on the chart, we expect to build out the balance of our backlog in the medium term, which is expected to lead to higher revenues and an operating portfolio of 75 MW. As you heard in all of our presentations today, we believe there are many ways that FuelCell Energy can participate in the energy transition. We also believe that across the energy transition ecosystem, there will be natural partners that we can work with. An example of how we are partnering today is our relationship with ExxonMobil, which goes back nearly 10 years. Through a stage gate process, the two companies have partnered, leveraging our collective expertise on multiple R&D and development agreements to demonstrate the viability and the value of our unique carbon capture technology.
Today, we are looking to bring that work out of the lab and begin demonstration projects, an example being at ExxonMobil's Rotterdam facility in the Netherlands. As we evaluate criteria and filters for partnership opportunities, we look at speed and access to market, operational alignment, and strategic synergies. We see the potential for partnerships to evolve in the areas of commercial expansion, manufacturing expansion, offtake or supply of product attributes, and carbon capture implementation. The company has clear strategic capital allocation priorities, and we will be disciplined about capital deployment. We have diverse sources of liquidity to draw from, and we are well-positioned as we sit here today with our existing cash balance and ability to recycle cash from our assets as well as future opportunities as the business evolves.
Uses of capital will include building out our project portfolio, investing in manufacturing expansion, as well as continued R&D to realize the full potential of our technology platforms. We will be disciplined about capital deployment to ensure a return on investments while maintaining a strong balance sheet. As discussed in our 10-K, this fiscal year we are targeting investments in three areas: capital expenditures, research and development, and continued build-out of our generation portfolio. Capital spending will be in the areas of capacity expansion, additional tests and laboratory facilities, and expansion and investment in our business systems and processes. As you have heard about throughout the day, our R&D efforts are focused on commercialization of our hydrogen technologies, including long-duration energy storage. Finally, as I discussed, we are committed to continuing the build-out of our generation portfolio to benefit from growing and recurring revenues.
Finally, the reason why we're investing now is that FuelCell Energy is well-positioned to participate in the accelerating energy transition, and we see significant growth opportunities for this company. Today, we are introducing revenue targets for revenue in excess of $300 million in fiscal 2025 and in excess of $1 billion in fiscal 2030. We get to our 2025 target by accelerating sales of our core carbonate technology and leveraging the full capacity of our Torrington, Connecticut facility. We demonstrated signs of growth in our first quarter with the return of product sales in Korea and expect this to continue with the investments that we have made in sales and marketing, as well as our recent settlement agreement with POSCO Energy.
In addition, by 2025, we will start to see revenue contributions from our solid oxide and carbon capture technologies with commercial execution and capacity deployment. The potential of these technologies becomes more fully realized by 2030 as we have capacity deployed globally.
The left side of the slide summarizes the keys to our business plan execution that we have discussed here today, including execution on our project backlog and winning new business around the world, capacity expansion, achieving product commercialization and gaining market share, reducing manufacturing costs, recruiting and retaining talent, and deploying capital efficiently. Included on the right side of the slide are the macro assumptions implicit in our planning, which include continuation of the global energy transition, carbon reduction initiatives receiving broad regulatory support, including a price for carbon, hydrogen becoming a significant energy source, continuation of favorable clean energy policies in the regions where we operate, and FCE's proprietary technology commanding high margins. As we continue down our growth path, if business doesn't evolve as we expect, we will adjust our revenue investment targets up or down and keep investors and all of our stakeholders updated on our progress.
In closing, we believe we are well-positioned to invest in the capabilities to support the future growth and product commercialization, and I am excited about the opportunities ahead of us. I will now turn it over to Jason for closing remarks.
Thanks, Mike. When I started today, we committed to unpack six themes covering how the energy macro environment is constructive for driving growth at FuelCell Energy. As I close, we add a seventh, our confidence in our future. Our business is supported by global tailwinds, policy, and consumers demanding that we and our customers make positive impacts on the environment. We outlined a long-term strategy anchored by our differentiated carbonate and soon to be commercial solid oxide platform, focused on decarbonizing power and producing hydrogen. You met some, but not all of our leadership team, but hopefully you gained a stronger appreciation for the breadth and depth of their experiences and experienced their passion for enabling the world to live powered by clean energy. Mike Lisowski outlined our operational capabilities and our commitment to excellence.
Mike Bishop highlighted the strength of our balance sheet, our focus on prudent balance sheet management, and our disciplined approach to capital allocation. We hope you have a better understanding of our aspiration to have a profound and lasting impact on the climate, a differentiated impact on scope one, two, and three emissions for our customers, our commitment to lower our own footprint and to ensure our customers have the energy resources they need to continue to deliver valuable products and services and to deliver top-tier sector performance. We look forward to taking your questions, and we thank you for joining us today.
That concludes the second half of our prepared remarks, and we're gonna sit here and take another round of question and answer. The first one comes from Leo Mariani from KeyBank, which is really around our longer term revenue targets. Specifically, having posted in 2021, $70 million of revenue, roughly, what is the visibility towards the nearer term of the two targets of the $300 million in 2025? I'll turn that one over to Michael Bishop.
Thank you, Tom. I'd also like to thank our investors, analysts, and all of our stakeholders for joining our presentation today. Now, as far as the revenue targets that the company put out today, we said that we're targeting over $300 million of revenue by 2025 and over $1 billion by 2030. How we get to the 2025 revenue, we look at really fully utilizing our Torrington, Connecticut, factory through manufacturing our carbonate fuel cell technology. If you look at what we did in the first quarter, you started to see product sales come through the P&L again. We had not seen product sales in the last three years. That's really the result of the settlement agreement that we entered into with POSCO Energy, which led to a firm order of 20 modules.
You saw $18 million of revenue come through from that. Then there's also a potential option agreement with another 14 modules. Then when you look at POSCO's installed fleet in Korea, it's quite large, and there's a large potential there. Beyond just the potential with POSCO, we've obviously now opened up the Asian market and are actively marketing in Asia. We would expect to see revenue contributions there as we fully utilize the factory. Then we'll also see contributions from our advanced technologies, as you heard about today, from solid oxide and carbon capture as we get closer to 2025.
Great. Thank you. The next question actually has been asked quite a bit from the investors out there. Thank you for the questions. It really is around our U.S. Navy base project in Groton, Connecticut, and if we can get sort of a current update of the activity underway and expectations for that project.
Thank you for the question. We continue to make solid progress advancing our platform progress and site construction of the platform that we're building at the Groton Naval Submarine Base. As reported in our Q1 earnings release, we identified during the commissioning process, which is a late stage element of bringing the platform to commercialization. We identified a piece of equipment that was operating outside of engineering specifications and parameters. We made the decision to deintegrate that piece of equipment and perform some performance upgrades to it. Safety and performance is paramount to us across our business, and as we continue to make those upgrades to the equipment, we will complete those shortly, reintegrate that piece of equipment into the platform, and then resume our commissioning activities. We will provide updates as to when the platform will be achieving commercial operation shortly thereafter. Thank you.
Great. Thanks, Mike. The next question comes from Jake McClanahan from BMO Capital, and it's really around color on our product and module sales for 2022 and expectations for beyond 2022.
Jake, thank you for the question. Again, thanks for everyone for participating in our call today. As we think about module sales for 2022 and beyond, you know, as we've talked about many times in our earnings calls, our sales cycles, because we do utility scale projects, are generally somewhere between 18-22 months kind of cycles. Now that as a company, we are also focused on module sales as opposed to just utility PPAs, we expect to see velocity pick up in our sales over, you know, the next couple of years in support of the revenue projections that we've provided for both 2025 and 2030. As we look at our pipeline, one of the things that we've done is we've built out an addition to our sales force. We've added, I think, 14 or so new salespeople to our sales team.
We've expanded our sales team in Asia now that we're actively back in that market and offering our platform to prospective customers. We expect to see that come through our business here over the coming, you know, months and years as we progress through this business plan cycle. One of the things that we're really focused on is ensuring that we have a very robust, qualified pipeline of opportunities in our CRM so that we can make sure that we can quickly move those projects through qualification, hopefully to a proposal stage and then the contracting and then the closing and signing firm orders. As we changed a couple of years ago, and you think about our backlog, as we've said, we're only gonna show projects in our backlog where we have signed PPAs or signed committed orders.
There's sales activity that you don't see, and that's because, you know, we're being very conservative about how we show sales activity once we get to sign orders.
Great. Thanks, Jason. We're gonna pivot a little bit to the sales opportunity that exists in Asia. Specifically, is there any insight to when we're gonna start seeing some revenue for non-POSCO-related South Korean business, or even more broadly, Asia in general?
You know, as we discussed, you know, earlier in the program, today, we think that the opportunity for us to be in Asia is well suited for our company and our technology. Let me just start with Japan. One things I do wanna say is I wanna let the people of Japan know that we're thinking about them with the earthquake that just happened there, and we hope that everyone is okay. Again, you know, that's an example where our first commercial product was in Japan, and we see that as a really attractive market opportunity. With a real-time event like today, right, energy security and reliability is important, resiliency is important.
As you think about how do you build a modern-day energy infrastructure, we think a big part of that is doing it by numbering up instead of scaling up. When you think about centralized power generation, one event can take out an entire grid, as opposed to a distributed generation platform where you have multiple edge nodes, if you will, which is what we do from a distributed power generation standpoint. We think our technology is well suited for a market like Japan. The fuel flexibility of our platform, as an example, we think also makes us really an attractive platform.
Whether you're talking about leveraging LNG or you're talking about leveraging biofuels or even as we move to our solid oxide platform and you start to think about hydrogen production of power, we think those are opportunities that our technologies will compete very effectively, not only in Korea, but Japan and other markets across Asia. We're excited about the opportunity.
That's great. Jason, in the beginning of the presentation, on one of the charts, you had a revenue mix without a date associated with it, which really showed a more balanced mix of revenue across the four reporting line items. Is there any insight that you'd wanna bring to how this evolves as we look at the targets in 2025 and 2030?
Yeah, maybe I'll start and then I'll ask Mike to make additional comments to this question. You know, as we think about our business model, we have, you know, strong recurring revenues across our generation revenue and our services revenue. We think that's very important because we are an integrated energy company. We do everything from innovation to the engineering to the manufacturing to the running and maintaining our platforms. Having consistent revenue flow for the company or cash generation is an important part of the business mix. Product sales will allow us to have the opportunity to scale top-line revenue faster, and that's an important part of our business as we continue to move forward. It also allows us to have less reliance on our own balance sheet relative to those type of project opportunities.
We are very focused on continuing to try to create a better balance between our recurring revenue as well as our product revenue, as well as what we do from an advanced technology standpoint. That is a focus. Those are the way we set targets with our sales teams so that we're not, you know, so that we are actually purposefully trying to make this happen through our go-to-market strategy. Mike, I don't know if you would add anything to that.
Thanks, Jason. Just to make one point on top of that, to dimensionalize this a little bit, as I talked about in my prepared remarks, we have been investing in our generation portfolio over the last several years. Today, as of the end of last fiscal year, we had about 34 MW of installed operating assets. That is going to grow here over the medium term as we finish out the balance of our backlog. We're looking to grow that up to 75 MW. If you look at revenue last year for that portfolio, there's about $24 million of annual revenue that will grow over time as we finish out these projects. That is long-term recurring revenue. These are long-term power purchase agreements with tier one customers, so we would expect to continue to grow that over time.
Great. Thanks, Jason and Mike. Thanks to Eric Stein from Craig-Hallum for that question. The next question comes from Noel Parks of Tuohy Brothers, which is really on the materials side. This one's gonna go to Mike Lisowski. Can you cover, sort of how we approach the procurement of materials if they're covered under long-term contracts for at least our most important components?
Yes. Thanks, Noel, for the question. As mentioned in my prepared remarks, we really take a very sincere and genuine and thoughtful approach to building our supply chain. These are longstanding, deep relationships that we work collaboratively to cultivate and develop. And those supply relationships have been really established in a very careful way to assure balanced supply, to ensure that we have alternate sources of supply, and to ensure that we have supply continuity. We operate on a continuum basis with these commercial relationships in establishing fixed price forward firm contracts. We establish those on a rolling basis to protect continuity of supply and also to ensure that our suppliers and our supply chain have ample capacity to stay ahead of our demand curve. Well-positioned in terms of direct material supply and supply continuity.
Thanks, Mike. The next question actually came in from a number of shareholders, which is really, can we describe it a little bit, the company's approach to capitalizing the business? I'll hand the mic over to Michael Bishop.
Thanks, Tom. As I said in my prepared remarks, the company sits here today with a strong balance sheet, raised capital last year, and we're looking to invest that capital in commercializing our advanced technologies. We also have a strong asset base, and we've demonstrated examples recently of where we've brought in tax equity financing to recycle capital into the business. You can also bring in debt against that asset base as well. I also mentioned in my remarks, potentially working with partners as well, to potentially access other adjacent markets. We see a whole host of areas to, you know, continue to maintain a strong balance sheet and to continue to grow the business here in the near term, medium term, and certainly long term, and create long-term shareholder value.
Thanks, Mike. I'm gonna let you all fight over who answers the next question. It's kind of a mix of three different areas, which is really sort of around the cost of energy. There was a number of questions around the cost per kilowatt that we actually compete for. Are we trying to drive it lower? What are some of the things or the cost initiatives, either on the factory side or on the engineering side, that we're trying to do, and where do we see that overall cost of energy needing to go? Tony?
I'm cutting you, sorry. A couple of things we do from the engineering and product development side. A key thing is increasing the length of time that the modules run before the cells have to be replaced. If you followed the company long enough, you know that when we shipped our first commercial product in 2003, those systems had about a three-year stack life. We increased that to five and increased the power output. We recently increased that to seven, and we look forward to increasing it beyond there. That's a lot of work that goes on to optimizing the specific components in the cells, just for durability over time. That's a key aspect.
The other aspect that maybe I'll have Mike speak to is that as we increase volume, we just get greater utilization of the factory, and that drives down our overhead costs.
Yeah, Tony, for sure. Economies of scale are very important. As we continue to grow our business, we're looking to fully leverage that business growth throughout our manufacturing operations and continuing to lean out our operations and remove and eliminate waste as we're continuing to scale production. Also, of course, throughout our supply chain in looking to capture those economies of scale and drive down direct material costs. We take a very, very holistic view in attacking cost reduction and elimination of waste, and all of those help to make a more compelling argument and value contribution to our customers.
Mike, maybe let me just add one other thing just to give Mike some credit here, Mike Lisowski. You know, if you think about what we've done over the last two years, you've heard us talk a lot about scaling our ability to get to 45 MW output in our manufacturing facility. You know, historically, that would have taken us multiple shifts to do. Today, we do that on a single shift. That's a great example of using efficiency, lean manufacturing, automation to actually enable that. We have a continued focus on improving our efficiency from a manufacturing standpoint. In addition to continuing to improve our supply chain and how we source materials is another huge focus area.
We'll continue t o look at how we leverage, you know, AI and automation as a way to continue to bring down costs. We, you know, have a plan in place. We're executing against that plan. I think you've seen us demonstrate that with a nice say-do ratio, which I talk a lot about, with respect to our ability to accomplish that on a single shift.
Thanks. I appreciate the answers there. We're gonna kinda go along the theme of scaling manufacturing, and you sorta pre-answered my next question. There was an add-on question that came in, which is: Are we open to alternative approaches to scaling manufacturing, including acquisitions and partnerships, as well as the confidence for us to overall scale our business to meet our targeted revenue?
No, great question, and then I'll turn it over to Mike to add on. I think as we look at manufacturing, we are very, you know, wide-eyed and open about ways in which we might optimize manufacturing, which includes looking at outsourcing, potentially, of our manufacturing, which may include partnerships or other ways in which we'll achieve manufacturing scale. One of the things that's really important in this energy transition is your ability to deliver localized content. If you look at our company today, we have manufacturing in the E.U. That's gonna be very important as government programs help drive adoption of things like hydrogen, you know, technology. There's over 520+ electrolysis or hydrogen programs announced to date, right? Local content is an important element of every one of those.
You know, we have a manufacturing presence in Canada, and we have a manufacturing presence in the U.S.. We'll stay very open to how we continue to make sure that we have a very modular approach to manufacturing so that we can meet in-country requirements 'cause we think that's very important, as part of our overall market opportunity as a company. In addition to that, we're very open, as we've disclosed previously, to looking at JVs and partnerships and even acquisitions, in terms of how we scale and grow our business, over time.
Thank you, Jason. We are very, very confident in our ability to scale. We have the existing capacity to be able to support our current backlog and profile of demand. We're thoughtfully deploying capital-light investments across our manufacturing operations to optimize, and as Jason pointed to, we're leveraging new technologies, implementing automation where appropriate, and really looking to, of course, all, continue our continuous improvement journey in leaning out the factories. We're very well positioned to scale manufacturing going forward in the future to support continued business growth. Of course, we'll keep all of the options open in terms of partnerships, outsourcing, continued leveraging of outsourcing, and really maximizing our ability to scale in a with high velocity.
Mike, maybe to just mention.
Yeah.
You know, that we've done this before. We've helped build large scale manufacturing before.
Yeah, that's a great point. We've stood up manufacturing operations outside of the U.S., for example, with a cell manufacturing and module manufacturing facility in South Korea. Yes, good point.
Great. We have time for one more question. This one actually came in, surprised me, from a number of shareholders. Can we explain more about FuelCell Energy's gas cleanup technology? Tony, you get to bring it on home.
Sure. Well, just a little history lesson is when we first started doing on-site biogas projects, we left it up to the customer to clean the gas up to our specification. Not all those projects ended the way we like. It wasn't our fault. But still, the projects weren't the way we wanted them to end. We realized we had to tackle this technology and optimize it ourselves, and that's what we did. We've developed a number of different approaches to the way sulfur is removed from biogas. What you have to do with biogas is clean out water, clean out sulfur, clean out siloxanes. We optimized the process for doing that. We also did something else very important.
We developed a way to measure sulfur down to parts per billion levels, so that if something goes wrong with the process, we can tell and stop and fix it before anything goes wrong. Really, it was an invention out of the necessity of getting our projects to work well on on-site biogas so that we could really enjoy the benefits of that awesome market.
Can I add one thing to that? I'd just like to add a little bit to that because the market application becomes really important here. The advantage that it gives us as a company is our ability to actually use on-site biofuels. To give you an example, where we have platforms deployed today at wastewater treatment plants, we use that on-site biofuel without ever needing to touch a common carrier pipeline. In essence, what that means is we have a much more economically or cheaper process to actually put that fuel in a form that can be used to produce power. In every one of those cases, we've been able to prevent flaring that was taking place before we deployed our platform, and we use on-site biofuels to do that.
We use the thermal energy of our platform to actually accelerate the anaerobic digesting process to create more fuel. It's a very nice closed loop system without ever having to leave the property, and that gives us a cost advantage in addition to a technology advantage of our platforms.
Great. As I mentioned, that really brings us to the conclusion of the program. I thank you for everyone's attention. I appreciate the investor interaction, and I'm gonna hand it back to Jason for a closing remark.
Thank you, Tom. I just wanna say thank you to all the investors, the stakeholders that have joined this meeting today. We really appreciate you spending time with us. We know this is a big time commitment. We hope that we've been able to communicate just how passionate we are about our purpose to enable a world empowered by clean energy. We hope that we've demonstrated to you that our technology, the solutions that we're deploying, actually enable us to live up to that purpose. We thank you for joining. We look forward to having continued dialogue with you, and thank you for your interest in our company. Enjoy the rest of your day.