And as you think of also the opportunity for productivity and also with digital capabilities and solutions. So across the Board, I think what makes us unique is, again, the ability to play at the full value chain of the energy ecosystem within the Kingdom through local capabilities. And — that’s a strategy that we’ve also put into place in other Middle Eastern countries as well with facilities in the UAE and Qatar. And likewise, it’s a region that’s very important to us.
Dave Anderson: Much appreciate. Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of James West from Evercore ISI.
James West: Hi, good morning, Lorenzo and Nancy.
Lorenzo Simonelli: Hi, James.
James West: Lorenzo, I wanted to touch back on carbon capture because it sounded like there was a bit of a shift in your tone there with respect to projects starting to move forward and to scale. So I want to know, one, is that accurate? Two, have you seen any change or have you put any change in your CCUS strategy? And how about an update on your kind of commercialization of some of the newer technologies in carbon capture?
Lorenzo Simonelli: Yes, definitely, James. And as we look at what’s happening, and we’ve been discussing for some time, the continued increasing demand for energy and the realization that we need in all of the above approach to the energy transition, it means there’s a shifting focus towards emissions rather than the fuel source. And that puts the forefront CCUS. And as you know, we’ve been playing and participating in CCS for many decades. But we’ve also been investing in CCUS capabilities. And so as we go forward, we think CCUS is going to be a first mover. And as you look at our order intake also on the new energy front, you can see from last year also that a large portion of our orders was associated with carbon capture, utilization and storage.
And we’ve got a wide array of capabilities that we’ve been developing. We’ve got the chilled ammonia process, which is for large-scale applications like power generation. We’ve got the mixed salt process and compact carbon capture, which is rotating bet solution, which is suitable for a smaller footprint of industrial applications. And then we’re also testing and piloting Mosaic materials for direct air capture technology and complementing all of this is the compression capability that we have and also storage and the knowledge of the reservoir and how to store and maintain the CO2 and compress it. So this is a theme that we see in projects that are going forward. And we think that’s increasing as the year progresses and also going into the next few years.
As people appreciate that it is an all of the above and we’re going to need to focus more on emissions as opposed to fuel source.
James West: Great. And then maybe a follow-up on the all of the above comment. Lorenzo, wouldn’t you have relationships with all the major tech companies, and they’re trying to scale data centers and that’s being supercharged by AI. It seems to me that renewable deployment is not going to be able to keep up with that. So going to have to go towards some type of fossil fuels, and it sounds like gas is the one they’re targeting. But are these data center providers beginning to at least acknowledge that reality that for some period of time, we’re going to have to build out potentially is more gas infrastructure to support this because the power generation needs are running well ahead of renewable or cleaner fuel sources?
Lorenzo Simonelli: Yes, I’d agree with you that there’s a growing realization that there’s a growing demand for energy, and that’s being driven by some of the data centers. And look, AI provides huge benefits both internally and also from an external perspective to us internally to drive optimization for our customers, but also externally to drive growth for our equipment and the services that we provide. And that’s why we like the ready gas turbines that go on natural gas today, but then can switch to hydrogen, that’s also why we like the solutions that we’re offering with regards to other clean power solutions. And as we talk to our customers, that’s what they’re looking for.
James West: Great.
Lorenzo Simonelli: And when we look at the data center developers, they’re all coming to a realization that there is going to be a growing need for off-grid solutions as well as distributed power generation with a view to continuing the aspect of reducing emissions. So, there’s also opportunities for geothermal and others where we play. And we look at it as being a growing element of our equipment portfolio and a nice segment that again diversifies us versus others because of the portfolio that we have.
James West: Great. Thanks Lorenzo.
Lorenzo Simonelli: Thanks.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Luke Lemoine from Piper Sandler.
Luke Lemoine: Hi. Good morning, Lorenzo, Nancy. The IET orders you had in 1Q put you on a nice pathway to hit the midpoint of the annual guide with GTE being the largest component. I’m sure most of the durability resides here. And you talked about some of the LNG awards outlook within GTE. But can you just talk about some of the puts and takes in the annual order guidance for IET?
Lorenzo Simonelli: Yes, I’ll kick it off here, Luke. And we remain very confident in the orders range that we provided for 2024. If you look at the started the year very positive from the orders front, booking over $2.9 billion of orders, including large awards, again from Aramco, but also from Black & Veatch for Cedar LNG. And LNG equipment will still be a portion of the orders outlook as we go through the year. And again, it was significant last year. But it’s also outside of LNG. It’s onshore/offshore production. It’s the gas infrastructure and also coupled with the new energy. And as you look at the guidance that we’ve given of new energy orders between $800 million to $1 billion and stable growth in services and Industrial Tech, so very confident in the $11.5 billion to $13.5 billion orders range and a strong pipeline of activity.
And when you look at what’s being heard from our customers and also what’s being seen, I think growing confidence on the elements of gas infrastructure and the opportunities that we have in the multiple sectors that we play in.
