Louis Todd Borgmann: Let me start out. Jason, it’s Todd. And then Bruce [indiscernible] to add on. On the DOE question, what we’ve said consistently is we don’t want to take on additional debt to the MaxSAF. And that continues to be the case. When I made a comment in the earnings call around, we’ll be ready to go when DOE approves financing. What we’re doing there is we’re assuming that that’s going to be the next opportunity for financing. There’s certainly other opportunities for financing. I think you’re probably referencing in the past where we’ve said, hey, as part of a monetization, proceeds could be used for MaxSAF expansion, those types of things. So all we’re doing here is simply suggesting that DOE, we would predict DOE as sooner on the timeline, although obviously, we can’t guarantee that don’t know that, but sit on a timeline and ultimate monetization.
I think the bigger point is we don’t want to take on additional debt to do MaxSAF. We made that commitment when we went and did the [indiscernible] hold on to that.
Jason Gabelman: Got it. And Bruce wants to …
Bruce Fleming: Yes. The second part of your question revolved around product placement. I’ll give you three thoughts. First, we read this sort of steady stream of announcements of people signing up for billions and billions of gallons of SAF, which may or may not ever be available in the market. That’s a backdrop. The situation for us is, we’re the largest of the only two producers on this side of the world. And we could sell all of the SAF to 12 different people tomorrow at the drop of a hat. So you’re in the very early stages of what’s going to be practically a vertical evolution for this new industry. So the third thought is, we’re the low cost provider. No matter what happens, we’re going to stand at the top of the competitive rankings on this.
We had the lucky accident of having the hardware to recover the SAF at a relatively low capital cost, everybody else is going to have to build that. So we are there already. We’re not first, World Energy [ph] was first, more second [indiscernible] advantage we are planning to stay advantaged.
Jason Gabelman: Got it. And maybe two quick clarifications on those comments. First timing around the DOE loan. I know it continues to shift down. And it’s always tough to guess when the government’s going to move forward on something. And then on the SAF economics, where you’re seeing those price premiums come in relative to renewable diesel. And I’ll leave it there. Thanks.
Bruce Fleming: The industry watchers seem to be centering on about $1 to $1.50 gallon premium to RD and that’s substantially a European circumstance right now. But I think we could broadly suggest that it’s going to be somewhere in North America. Anybody with an RD platform should be able to fish out about 15% or 20% of it as SAF. So those in our mind [indiscernible] together, they’re going to have to [indiscernible] together through the nest of regulatory support mechanisms, including the new SAF blenders tax credit. And we think that’s an appropriate spread, which is going to reflect an industry average player. I’m going to emphasize that we’re doing better than that. The way the trade flows set up is also probably going to contribute because there are feedstock yield differences.
There are catalyst yield differences, there’s operational severity. And so if you think about refinery complexity and LP multivariable decision making, you’ll be thinking the right way about SAF made from hydro processing, like us. I’ll contrast that with something that’s very, very linear. If your model is you buy ethanol, you convert almost all of it into SAF, you don’t have all of that optimization flexibility. So our dependence on any premium in the market is different to a new entrant that lacks flexibility.
Jason Gabelman: Got it. And then on the DOE loan timing.
Bruce Fleming: That’s up to the deal. We are very pleased with the relationship that we’ve established over the last year and a half. It is actively engaged. We are in underwriting. But I’m not going to forecast their eventual decision or their timing.
Jason Gabelman: All right, great. Thanks for the color.
Bruce Fleming: Thanks, Jason.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Brad McMurray for any closing remarks.
Brad McMurray: Thanks. On behalf of the management team here in the room, and really on behalf of all of Calumet, we’d like to thank you for your time and your interest this morning. Have a great end of the week, and this concludes the call. Thanks.
Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.
