And again, I think the thing that’s very different about some of the announcements going on today as compared to what happened in 2012 was there was a lot of spec plants that were being announced by people that were not industry participants at the time, just because they thought, hey, this is a great thing that we want to go do. Most of the announcements that you’re seeing today are from people that are well-capitalized already in the business, understand it. And you also see a number of people that are ultimately going to be end users of the product or other participants in the channel that want to be involved as well. And so it’s got a very different feel to it. And again, as we look forward, the JERA MOU is really just the first piece of tangible demand that is emerging, and we expect a lot more to come.
So our sense is that for ammonia really to take off as a clean energy source, we’re going to need the production capability, that are represented in some of these announcements. And the number that are announced versus the number that get billed is ultimately a €“ it’s less than one for one. So we’ll see how all that develops. But we’re €“ we’re very pleased with kind of where we sit in terms of the leadership, not only on global ammonia production, but also the actions €“ the early actions we’ve taken to de-carbonize our network and produce low-carbon ammonia.
Andrew Wong: That’s helpful. And just like on the traditional grey ammonia plants, just in general, we haven’t seen a lot of announcements, like why do you think that is? And does that potentially continue? Is there maybe some sort of hesitancy to invest in carbon generating businesses, or maybe is there something else?
Chris Bohn: I think a lot of the announcements, Jeff, that you’re hearing are actually blue ammonia projects, which are effectively gray ammonia production that just has sequestration areas around it. So I think it’s why you’re seeing the activity in the Gulf Coast with the ability to sequester it. So, obviously, the transition to blue ammonia given the incentive structures that have been put out there, allow you to make that incremental capital. So that’s why I think you’re seeing it is because blue ammonia projects with the enhanced 45Q become very close to what a conventional production would be.
Tony Will : And actually probably with better economics of conventional production.
Andrew Wong: Okay. Thanks.
Operator: Our next question comes from Josh Spector from UBC — I’m sorry, UBS. Josh, please go ahead.
Josh Spector : Yes. Hi. Thank you. Just on natural gas quickly. I mean, I know you guys normally don’t do much hedging further out, but given where prices are, I mean, do you take a different view over the next six to 12 months. It’s hard to see that you’ll be very wrong on the low end of that. So, just curious on your thoughts.
Bert Frost : Yes. This is Bert. When you’re looking at natural gas, you’re correct. We don’t hedge that far forward. We do hedge in the winter months, as you saw in our Q4 numbers, and that’s just as a reflection of some of the things we’ve seen with freeze-offs and risk. But when you look at the forward, we’re 2.50 from now through the summer months and then $3 until you hit winter again and then in the low $3s there. So it’s something to look at, something to talk about. We do have a gas committee that Chris and I and Ashraf and a few of the others who team sit on and ruminate over these things, and we’ll have to take a look at that.
