Josh Spector: Sorry, if you had more go ahead, but I was going to ask a second quickly, the Canada project financing, was that expected that anticipated in your economics? Does that change your cash ? I’m sorry, I didn’t understand.
Melissa Schaeffer: Yes. So thank you for asking that. So just to be clear, on our Alberta project, we have no project financing associated to that project.
Seifi Ghasemi: Exactly. On the project financing, we do the project by project. because it’s a very complicated project and so on, difficult to finance. NEOM was pretty easy because there’s an offtake price and so on, and we can calculate that. Now with our project in , the $4 billion project that we announced, we will most probably look at project finance on that. But we made the decision a step by step, the options that Air Products has, which is is that we have the option of using our own cash because we have the cash. We have the option of raising money by going to the market as Air Products and raising bonds and then they have the option of project finance. So we take everything into consideration and come up with the best possible solution.
So with new, with the partners and so on, we decided project finance was the best thing. Obviously, for project finance, we are going to pay a higher interest than if we have gone and increased bonds, but that was a joint decision with other partners. Now for the project in Texas, we will probably do project finance. For the project in Louisiana, we probably would. It depends — and this is something that keeps our finance department and our treasury department busy trying to assess all of these things, and we do ask all of those questions. and we make the most optimum decision.
Josh Spector: Okay, thank you.
Seifi Ghasemi: Any more questions, operator?
Operator: We will take our next question from Laurent Favre with BNP.
Laurent Favre: Okay. . Okay. Hello. Good morning, all. My question is on inflation or the inflation risk for the rest of the backlog. So if we take one from the $19.4 billion, there’s about $15 billion less. I was wondering if you could talk about the risk that there. We also see billion or $1.5 billion of extra costs and whether you have flexibility on selling prices to adjust for that to maintain returns? Thank you.
Seifi Ghasemi: Well, thank you. The rest of our projects, obviously, some of them are the other projects that we have announced are actually in a much more advanced stage than new. So we have a pretty good feel for their cost and all of that. But I don’t want to deny decide that there is inflation. But we just don’t think that the inflation thing is something that we cannot manage or it will significantly caused a struggle because with some of the projects, I mean, let’s take the project in Louisiana. The project in Louisiana, if there is inflation on our capital cost goes up, then they will price the ammonia and the hydrogen out of that facility accordingly. So there is not a type of project that we have committed to a sales price for the product and now we have to keep the additional projects., but most of those things are just about that. So that’s why the thing we can manage.
Laurent Favre: Okay, thank you.
Seifi Ghasemi: Thank you. Operator, we have time for one more question, please.
Operator: Thank you. We will take our final question from Laurence Alexander with Jefferies.
