Seifi Ghasemi: Okay.
Josh Spector: Thank you.
Seifi Ghasemi: Sure.
Operator: Our next question comes from Mike Leithead with Barclays. Please go ahead.
Mike Leithead: Great. Thanks. Good morning, guys. Seifi, just one question…
Seifi Ghasemi: Good morning.
Mike Leithead: On your blue ammonia facility, a large fertilizer company last night paused their clean ammonia project, basically saying the costs are coming in higher and they’re not seeing downstream applications develop as fast as they thought. I was hoping if you could speak to those two factors, cost and offtake agreements as it related to your projects?
Seifi Ghasemi: Well, Mike, obviously, I cannot comment on what other people are saying. The blue ammonia project that we are building in Louisiana, there are many different options that we are considering in terms of the exact final scope of that project, as things develop with the markets and all of that. You know very well that, that project, we are going to make 750 million standard cubic feet a day of hydrogen. One of the issues for us is finalizing how much of that hydrogen we are going to put in our pipeline, and how much of that hydrogen we are going to put and convert to ammonia. That obviously makes a difference in terms of our total capital cost and all of that. I do not want to dispute the general statement that, obviously, the cost of these projects are going to be probably higher than people expected because of inflation, because of labor shortages and all of that.
But we have not finalized anything yet, that is at this stage that we would want to talk about that. But, because our scope is still under definition the sequestration, how do we do the sequestration. It will make a difference whether we do the sequestration ourselves or be subcontracted to somebody. So there is a lot of moving parts. But I’d like to turn it over to Dr. Serhan to make some additional comments.
Samir Serhan: Thanks, Seifi. I mean, definitely in the context of the soft global economy, global COVID pandemic, shortages in labor materials, supply chain disruptions, record inflation rate, I think we definitely at the bar sure that we can deliver. I mean, we show that on Jazan, we showed it on Jiutai. We showed that on Gulf Coast ammonia and projects that you don’t really hear too many about 160 of them were closed and bought on stream during the COVID period. So I think, again, we managed to show that we are walking the talk basically and we delivered on these things. With the challenges that exist, we do see something like the inflation subsiding slowing down. But it’s not going any – but we’re really having the execution, basically where managing these challenges and deliver on our commitment, which is the 10% EBITDA during the contractual life of these assets.
Seifi Ghasemi: I’d just like to make one additional comment. I can’t help, but make the comment. As I said, I don’t want to comment on what others are saying. But I do like to make a general comment that a lot of people sometimes start on this journey of blue ammonia and green ammonia, based on back of the envelope things without really understanding what they’re talking about, because they have never done it before. As a result, they come up with numbers that looks pretty attractive. Then when they start actually doing the project, defining their scope and finding out the complexities, then they get surprised. So, I wouldn’t be surprised if in the future, many of the people who have embarked on this energy transition would come up with realization, that some of these projects that are a lot more complex than they think.
It takes a lot more. And not everybody who has never made a pound of hydrogen in their life can become a supplier of blue or green hydrogen and participate in the energy transition. We have been in this business for 60 years. We think we know what we are talking about. But anyway, I just couldn’t help, but make that general comment. Okay.
Mike Leithead: Fair enough. Thank you so much.
Seifi Ghasemi: Thank you.
Operator: Our next question comes from Duffy Fischer with Goldman Sachs. Please go ahead.