We’re learning a lot about the industry as we go. And we’ve got a lot more left to learn. We’ll be humble and say that there’s a lot of the €“ the whole area of the vegetables oil supply chain that we’ve got to develop and add to this project, but we’ve got our fingers into a lot of opportunity there. We feel very good that all that will be in play in the first year of the project start-up, and we’ll continue to develop some sophistication €“ added sophistication around those feedstock deals as time comes.
Menno Hulshof: Terrific. That was super helpful, Jon. Maybe I’ll follow-up with the question since you’re the first pathways member to report. So, pretty standard question. How are things looking in terms of resolution of discussions with the Feds on additional incentives? And is it possible that we see something with the announcement of the budget or do you think it’s a bit further out than that?
Brad Corson: Yes. Thanks for that question. I kind of start my response by just noting that we continue to make great progress on, kind of the whole breadth of, kind of the pathways activities, including, as I put in some of my earlier remarks, progress on the pipeline, the main trunk line design, environmental studies are underway in the field. We’re continuing as individual companies to work on the capture side of each of the many projects that will feed captured carbon into the pipeline, and of course, great progress on the pore space award from the provincial government. On the federal side in terms of financial support, those discussions continue to be very constructive, continue to move forward. The federal government, I think was a when they came out with €“ in last year’s budget speech, the announcement of the 50% investment tax credit, a very enabling first step for us.
But as time has gone on, and we’ve seen what’s happened south of the border with the U.S. Inflation Reduction Act and some of the incentivization that’s provided there, it’s critically important that our projects in Canada be competitive for investors that have choices to invest in either the U.S. or Canada or globally for that matter. And so, the level of fiscal support is lagging. And we’ve always said we needed more than that 50%. So, that’s not a surprise. And we’re also optimistic that the province will contribute to that as well. So, it’s really a tri-party discussion that’s going on between the Pathways Group and the federal government and the provincial government. Now, whether that will get resolved or clarified further in the upcoming budget speech, I’m not sure.
But again, this €“ it’s complex and it takes a lot of important engagement to balance, kind of financial priorities and applications, not just for our projects, but across the broader industry and other sectors that also need access to capital. But again, it’s very positive that both governments understand what we need to move these projects forward and they’re both very supportive of moving these projects forward. So, I’m optimistic that if it’s not in the budget speech, it will be soon thereafter that will get, kind of not just clarity but resolution so we can move forward on these projects.
Menno Hulshof: Thanks Brad. I’ll turn it back.
Operator: We’ll go next to Neil Mehta with Goldman Sachs.
Neil Mehta: Yes. Hey guys, hey Brad. Thanks for taking the time. Two quick questions for me. One is your outlook on M&A, Brad, you spent a lot of time in M&A markets , and what do you think Imperial’s role could be in that going forward? And then the other is your views on WCS, we’ve seen a lot of volatility there. So, those would be the two topics.