Seifi Ghasemi: Jeff, that’s a very good question. We have disclosed publicly that, that project will produce about 1,850 ton a day approximately of partnership. That project is literally next to our pipeline. So we are assessing how much of that we can put to the pipeline and sell because 1,850 tons of hydrogen is not that huge compared to the total sale of hydrogen that we have on our pipeline because our pipeline over there can do significantly more than that, significantly more than that. Therefore, one scenario is that all of the customers on the pipeline due to environmental regulations or the registration develops and so on decide hey I want blue hydrogen. Then we can just out of the hydrogen into the pipeline. Then it is possible that not all of them would convert.
Some of them would say, no, I was still okay, with gray hydrogen. Then we did have excess hydrogen to put and make it into ammonia. Therefore, what we are doing is that in terms of the actual building of the plant, we are building the plant to have ammonia facility that means you can build the ammonia plants. And then we will have ultimate capacity to an ultimate flexibility to use as much of the hydrogen in the pipeline and whatever we can use, we make into ammonia. There are ammonia plants themselves, Jeff, in the context of the overall. Don’t cause that much. The ammonia plant, once you have the infrastructure, putting a 1.2 million ton ammonia plant by itself is only $250 million. So we are not going to lose anything significant by having basically cycle spare capacity.
And then the other thing is, obviously, how the demand for blue ammonia developed as we go forward in the next few years. So we are building a plan to give us the flexibility, and this is the beauty of the situation that Air Products has that nobody else has. Is that we can make through hydrogen, and we have total flexibility, but that we can send it as hydrogen or we can sell it as ammonia. Because of the unique situation because we have the pipeline. And as a result of that, I think we can maximize the profitability of that better than anybody else then possibly can.
Jeffrey Zekauskas: So you haven’t determined how much ammonia you’re going to make yet?
Dr. Samir Serhan: Yes, I said we haven’t determined how much ammonia we’re going to sell.
Melissa Schaeffer: how many ammonia plants you’re going to build?
Jeffrey Zekauskas: Great. Thank you so much.
Seifi Ghasemi: Thank you. Thank you very much, Jeff.
Operator: We will take our next question from PJ Juvekar with Citi.
PJ Juvekar: Yes, good morning.
Seifi Ghasemi: Good morning, PJ. How are you?
PJ Juvekar: Good. Seifi, on the NEOM project, you had inflation and then you also had that $1.2 billion of increased sort of financing costs, et cetera. What is that — and that is — not the financing cost I’m sorry, there’s the additional cost –additional scope, I should say, and you’re going to build transmission lines yourself, et cetera. What does that mean? Does that additional scope mean that the project could get delayed? Or do you think it’s still on time for 2027?
