So from a cash flow standpoint, we think that’s going to help us. Not ready to give a projection on cash flow at this point, Brent, because we’ve got a lot of moving parts. And we’ve got — as we said, we’ve got to work a plan that solves our other liquidity issues that arose primarily from those solar losses.
Brent Thielman: Got it. Okay. I’ll get back in queue. Thanks, guys.
Lou Salamone: Sure.
Operator: Thank you. [Operator Instructions] The next question is from Alex Rygiel with B. Riley. Your line is now open.
Alex Rygiel: Thank you. Good evening, Kenny and Lou. Couple of quick questions here. First, as it relates to the strategic realignment target of $30 million, when do you think you’re going to reach that? And is there any upside there?
Kenny Young: There’s always upside, Alex, but we’ll get to the upside when we get to the upside from that front, because we’re always looking at how we optimize and re-optimize the business to make it more efficient from that standpoint. So there is potential upside on top of that $30 million on that particular piece, but we — I mean, by end of year this year, I think we’re through $19 million now, and I think we’d realize by end of year the full $30 million, and it’s part of the plan to get to the $100 million, $110 million of EBITDA that we’ve got as our target out there on that. If we can get upside, obviously we’ll take advantage of that, but that’s the plan right now.
Lou Salamone: The other thing that does Alex as we de-emphasize that business somewhat, letters of credit, they can go down, that substantially reduces our interest costs. So in addition to the $30 million that we’re talking about, there are other costs that will impact positively our cash flow. So I think the strategic direction we’re taking makes sense. It fits in line with our balance sheet and it fits in line with our emphasis on really parks, services, that type of business and conversions rather than pure new builds that have just a low margin and high costs.
Alex Rygiel: Sure. And then as it relates to the discontinued solar business, any update there on the timing of a resolution of the outcome of it?
Kenny Young: No update on timing. We’re actively in discussions and involved in conversations and the process, but no update on timing as of yet.
Alex Rygiel: And lastly, as it relates to Bright Loop in Ohio, can you go back through and kind of update us on where we stand on that and what the timeline looks like for construction to start and so on.
Kenny Young: Yes. No good — I appreciate that. So, as we announced last quarter and I think I reiterated in the remarks here, we have a letter intent on the financing of that project. We are — we have the location actually under contract right now for that site in Massillon, which is good. We’re working through the permitting processes on that. The major piece that we’re waiting on right now to complete and we’re going through internally on that is to come up and finalize the construction estimates. So we’ll utilize there both our own internal [indiscernible] construction company, but we will also have a civil works partner on the civil works aspect and we’re trying to complete some of those estimates based on that particular project.
So as we continue to evolve that project, we continue to evolve the engineering side of it and the construction estimates. And we’re waiting to get those complete, and specifically a couple long lead time items to get those complete, and specifically a couple long lead time items on the compression and compression technologies. We’re also trying to — again, as we look at finalizing that project, to make sure that we’re in sync with our off-take partner both for the hydrogen and the CO2. In this particular case, we believe that the CO2 would be beverage grade rather than sequestered CO2. That’s added a little bit of complexity, not much. Pretty standard off-the-shelf technology, but added a little bit of complexity on the layout of that project, and therefore some consideration on some of the civil construction elements that we need to finalize.
So once we get through that particular piece, we need to see where we are specifically on the gap between the financing we have and the final construction price and work through any of those final issues there. And then we would look to try to move forward with that project and begin the construction. So a little bit loose on specific timings as we try to complete some of those elements and finalize that and work through some of those details. But we’ll keep everybody apprised as we move along.
Alex Rygiel: And then lastly, congratulations on the $16 million grant. Can you talk about maybe some of the other applications that you have in for other grant money and what the timelines of those could look like?
Kenny Young: Yeah, we are working obviously with one or two other states. I won’t go too much further than that, because we’re under NDA, but we are working with one or two other states on some funding capabilities around additional Bright Loop projects within those states. And so we’re progressing and moving those discussions and dialogue along. And obviously would announce that as soon as practical. We are working aggressively with the Department of Energy on a few different opportunities to help fund some of this technology. One of a couple of areas, obviously, combinations of the Department of Energy loan program, looking at also the possibilities of some other funding within some other departments and the federal government to support the implementation of these projects, and we’re working on that as well.
The other key piece, I think as a reminder, I think we’ve announced it or discussed it last year, but we do have appropriations language that was a bipartisan approved and signed into law by the president last year for appropriations funding of the commercialization efforts of chemical looping to hydrogen production from biomass coal and natural gas. And we’re in a lot of discussions there with state officials as well as federal officials to try to push that through and move that along. So we are continuing those efforts rigorously here in Washington DC to try to get that moved forward as well too.
Alex Rygiel: Perfect, thank you very much.
Kenny Young: Thanks, Alex.
Operator: Thank you. There are no additional questions in queue. I’d like to turn the call back over to Sharyn Brooks for concluding remarks.
Sharyn Brooks: Thanks everyone for joining us today. This concludes our conference call. A replay will be available for a limited time on our website later today.
Operator: That concludes today’s conference call. Thank you for your participation. You may now disconnect your lines.
