Ecovyst Inc. (NYSE:ECVT) Q4 2022 Earnings Call Transcript

Kurt Bitting: Yes. Thanks for the question. So when you look at renewable fuels and the new production units coming online are really being built to service the two kind of segments when we talk about renewable diesel, which again is a drop in one-for-one replacement of regular road — called regular sulfur — ultra-low sulfur road diesel. The next — kind of the next step of those processes and what a lot of the new units are being designed also to make sustainable aviation fuel. So as we look forward into kind of the 2025 to 2026 time period, we see more sustainable aviation fuel being adopted, where airlines are going to start to blend up to 50% of that sustainable aviation fuel into their fuel blends to start to try to achieve their low-carbon technology.

So that’s really, as you look down the road, you see renewable diesel, taking share of the diesel market, but then more I think the larger share will come really from aviation where it can be blended up into a 50% range. But we expect growth, and I think as Mike had said, renewables in the low double digits this year. And the way we track and our Zeolyst that we sell into that industry are coveted for their purity and their performance. And we partner with really the leaders of the technology in those areas that are capturing a lot of those new units. So we’re positioning ourselves with our really Zeolyst expertise to benefit from the growth in that segment going forward.

David Silver: Okay. Thank you very much.

Operator: We have no further questions in the queue at this time. This does conclude the Ecovyst fourth quarter and full year 2022 earnings call and webcast. Thank you for your participation. You may disconnect at any time.