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Equipment Related to Power Purchase Agreements and Fuel Delivered to Customers, net

12 Months Ended

Dec. 31, 2022

9. Equipment Related to Power Purchase Agreements and Fuel Delivered to Customers, net

Equipment related to power purchase agreements and fuel delivered to customers, net, at December 31, 2022 and 2021 consists of the following (in thousands):


	December 31,		December 31,
	2022		2021
Equipment related to power purchase agreements and fuel delivered to customers	$	109,683	$	89,641
Less: accumulated depreciation		(20,390)		(16,739)
Equipment related to power purchase agreements and fuel delivered to customers, net		89,293		72,902

As of December 31, 2022 and 2021, the Company had deployed assets at customer sites that had associated PPAs. These PPAs expire over the next one to ten years. PPAs contain termination clauses with associated penalties, the amount of which cause the likelihood of cancellation to be remote.

Depreciation expense is $6.9 million, $7.4 million and $7.9 million for the years ended December 31, 2022, 2021 and 2020, respectively.

The Company recorded an impairment of $1.5 million and $10.2 million for the years ended December 31, 2022 and 2021, respectively.

The Company terminated its contractual relationship with a fuel provider effective March 31, 2021. The Company has historically leased fuel tanks from this provider. As a result of this termination, the Company recognized approximately $17.0 million of various costs for the year ended December 31, 2021, primarily for removal of tanks, reimbursement of unamortized installation costs, costs to temporarily provide customers with fuel during the transition period, and certain other contract settlement costs, which were recorded in the Company’s consolidated statement of operations as cost of revenue — fuel delivered to customers. The Company also purchased certain fuel tanks that were previously under operating leases from the fuel provider during 2021 and included in equipment related to power purchase agreements and fuel delivered to customers. In 2022, there were no such vendor terminations.