Eric Blashford: Well, remember, we’re starting to see a bit of softening in steel, but it’s still, especially for plate steel, which is used in wind turbine tower, is still at a multiyear high. But there’s a bit of a softening, call it, between 5% and 10% softening. So we think that could possibly help profitability and the cost structure of wind turbine towers and wind turbines going forward. I think that’s — as far as overall inflation, we’re seeing stable pricing. As a reminder also, wind in the wind market, we are a pass-through with regard to our input costs from primary input costs, so it wouldn’t really impact our margins. It would impact our gross margins if steel goes up as we’ve talked before, Amit.
Tom Ciccone: And Amit, the only thing I’ll add to that is where we’ve been — if you go back a couple of years in 2020, the price of steel plate was 1/3 to maybe 1/2 of where it is today. So it’s just for some perspective, we are still at these elevated levels of steel pricing.
Eric Blashford: So the headwinds that I think are causing this, what I’m calling a temporary move to the right with regard to wind turbines is interest rates are definitely affecting financials for projects and cost inputs, inflation, like Tom said, steel, 2 or 3x the price it was several years ago are definitely causing some of the EPCs and the developers to seek higher PPAs, purchase price agreements or power purchase agreements, from utilities to be able to enable their projects. So I think that is a short-term dynamic that we’re all facing in the market, which is causing things to move to the right a bit.
Amit Dayal: Okay, understood. And just the last one on monetizing these manufacturing credits. I mean, I know you said this is potentially something that will come into play in 2024, but is it going to come through with maybe one, I guess, customer or party? Or are you talking to multiple parties about monetizing these credits?
Tom Ciccone: Yes. Thanks for the question. Yes, we’ve been talking to multiple parties about this, and the structure changes depends on who you’re talking to. There’s a potential for 1 buyer to purchase all of them for this year and next year. There’s potential for multiple buyers. So it kind of just depends on the deal that’s out there. But we are looking to monetize these as soon as possible, possibly 2023, if we can. We’re just working towards that.
Operator: Our next question comes from Martin Malloy with Johnson Rice.
Martin Malloy : First question. You mentioned a new product offering, low pressure for RNG industry. Could you maybe talk about that product and the scope there?
Eric Blashford: Yes. We’ve developed proprietary products that service the natural gas virtual pipeline market. And maybe you remember from previous calls, that market services — it replaces hard pipeline. So it takes stranded natural gas, compresses it, takes it to the point of use, whether it be a hospital or a different natural gas line if it needs to be maintained, a frac site and decompresses it at the site so it can be used at a normal pressure. So we developed technology to do that. So we first developed what we call the medium flow, which can handle, call it, maybe 2 trailers at a time decompressing. A high flow, which we released earlier this year, which is up to 4 trailers at a time. And this low flow, which is obviously a lower flow, lower need, lower demand.
It’s also the least expensive. So we think it can fit a price point that some of our customers are looking for. So it completes the suite of products for this product family, and we think we can serve the market very well with those 3 delineations. Also RNG, which is renewable natural gas, that tends to be smaller in volume. And so you don’t need the higher pressure management as you would in our medium flow or a high flow unit. That’s why the renewable natural gas version is part of the low flow unit.
Martin Malloy : Okay, great. And just for a follow-up question. I just wanted to ask about acquisition opportunities and you’ve talked about in the past on calls. And maybe could you give us a sense of kind of the pipeline that you’re seeing right now and potential acquisition opportunities to look at?
Eric Blashford: Well, we’re cautious. We want to make sure we do the right acquisition, the right size acquisition. But we’re looking at companies that are in the precision manufacturing space, that either are or can certainly serve the energy transition. We’re looking for additional and adjacent materials such as composites, lighter metals, aluminum. Everything we do basically right now is carbon steel. We want to make sure we can get into more materials that service the clean energy transition, such as metals. But I don’t have any specific ones or that I’m prepared to talk about right now.
Operator: Our next question is from Justin Clare with ROTH MKM.
