Our solution allows us to manufacture CNG, utilizing Geobaric Energy and without any mechanical compression right on our Utica well pack, filling the CNG trailers and delivered to customers bypassing several cost and energy intensive steps. So again the solution that lowers cost and emissions for customers, which is what industry is looking for. And we have partnered with NuBlu Energy to bring this technology to the US market. NuBlu has a track record of developing CNG and LNG solutions, and we are excited to partner with them.
Nick DeIuliis: Hey, Leo, this is Nick. Maybe, too, it will be helpful because to your point, there are specific questions about technology and market for these announcements we’ve made. But also, these announcements are sort of additional developments, I call them in a much bigger thing that we’ve been working on now with New Tech for a couple of years. And it ties to a couple of realities, facts out there in the world today in our industry, right? One is that you got this global demand for energy that keeps growing. And you see it in advanced economies like ours, with AI and data centers, you see it in a developing world where they’re looking for and insisting on better quality of life for their people and citizens. So the world wants all these additional Btus, horsepowers, kilowatt hours, and they want lower emissions to go along with it.
But there’s other truths that we’re seeing as well. Wind and solar at scale, when you couple that with electrifying everything, that is a recipe for grid disaster and the degree of subsidy probably doesn’t change the physics of the matter. So that exclusively is going to have some challenges. We see ideas right or opportunities to export more Appalachian gas and LNG units to places like India, China, Europe, wherever. And that sounds great, and it’s got a certain degree, I guess, of logical merit to it. But the reality there is that you’re going to have to build extensive pipelines and LNG facilities to do it. And in this lifetime, that’s going to be really challenging. So in terms of the near intermediate term, that’s sort of DOA, I’m sorry, as an option.
And really, it’s sort of inefficient when you think about it because in the grand scheme, you’re importing on one hand, Btus from thousands of miles away to here via things like gasoline and Mid East oil. And then you’re exporting our Btu thousands of miles away, right, to the other nations that I’ve mentioned or examples like that with LNG. So it’s not the most efficient sort of supply chain net-net. You got hydrogen. Hey, the hydrogen economy, it’s got some really interesting attributes specifically with blue hydrogen, which means natural gas is going to play a role in that. Green hydrogen at scale, that’s going to be effectively from a technical perspective and able to scale it in a nonstarter as well as having some economic challenges. So we think we found a better way with this New Tech approach, and it’s one that checks all those boxes.
It sort of was captured within our Appalachia First vision that we laid out a while ago, which is basically, make the natural gas responsibly here and then use it here through things like Ravi said, CNG, LNG, these technologies. And it basically leads to an onshoring of manufacturing of goods that we currently also import. So when you do this, like we’re basically shrinking supply chains, you’re dropping emissions, you’re declining costs, you’re growing GDP and you’re expanding jobs, family sustaining wages with respect to those jobs as well. And our friends in labor and the trades, they love that component of it. So, this is real. This proprietary technology, right, its showing now that we can commercialize this. It is true. I mean, Ravi called it renewable, I call it true alternative energy with regard to the Geobaric that he mentioned in the shale formations.
And when we’re able to harness that, it really allows for efficient and cost-effective conversion of the energy in these high-pressure shale horizons like the Utica and Haynesville into CNG and LNG and then on the flowback technologies across all the shale horizons. So, when you think about this, our markets, instead of trying to expand existing markets and horizontally expanding, what we’re really proposing here is to vertically expand into market opportunities for natural gas, vertically expanding into electricity generation, whether it’s the micro grids or meeting demand during power crises, which we’ve seen recently or feeding that growing appetite for things like AI data science centers. Ground transportation is another huge market opportunity that we see the CNG, LNG, right.
Because it’s a displacing others gasoline and diesel products supply chains that have tens of thousands of miles cumulatively. On the air industry and fueling it. That’s another big opportunity with the sustainable aviation fuel and then an onshoring of manufacturing, keeping a close to the CNG, LNG and frankly, our environmental attributes with our waste mine methane capture is a big one. So this past week, we saw two more tangible examples of this with those press releases our environmental attributes with waste methane capture is another big example of that. They penetrate those four markets that I talked about. They’re all individually, those four are massive in terms of potential, they all are going to generate free cash flow and they’re all going to positively impact our view of NAV per share of the company.
But these technologies they sort of they come from similar opportunities with that harnessed energy in [indiscernible] form and they both sort of rooted in the same vision. So sorry for the extensive one, two explanation but if it’s something that has been front and center with us for a while. And we wanted to take the opportunity to sort of not just address your question but take a step back and look at the bigger picture.
Leo Mariani: Well, that’s certainly helpful. Certainly appreciate all of the detail here. I think many, many folks are sort of wondering about a lot of this. I think that’s very helpful. And then just a quick follow-up to that. So if I kind of read you correctly, it sounds like that you may be kind of starting to roll this out to third-party customers later this year and start to see some revenue end of this year and into 2025. Can you maybe just talk to the capital side the expect any meaningful capital associated with these new businesses that you’ve announced? Or is it a fairly kind of low capital intensity endeavor for the company?
