Operator: The next question comes from Devin McDermott from Morgan Stanley.
Devin McDermott : So I wanted to go back to Stratos, the first DAC plant in Texas. You’ve made some progress in contracting some of the offtake there. I was wondering if you could just talk at a higher level on the demand that you’re seeing for offtake from that DAC facility? And then I think signing offtake was one of the key factors driving some of the ranges in capital spending for lower carbon ventures this year. Could you just talk about where we’re trending within that range as well?
Richard Jackson : Yes, great. I’ll start with the CDR sales. I think as we’ve continue to talk about, we really believe in the market and believe that really the formation and sales are following kind of our expectations. I mean clearly pleased with strategic, strong strategic customers like A&A that recognize really the fit of our product, which is a into a larger aviation decarbonization. So while there — we think about broadly sustainable aviation fuels, we feel like CDRs fit well into that market. So if you look at some of the equivalents on probably a better marked market in terms of sustainable aviation fuels, those may range $800 to $1,000 a ton we believe we’re going to settle into that market well. Really, the key for us, though, as we continue to talk, is driving the innovation and cost down in DAC.
And so we remain focused not only the construction parts going on in Permian with Stratos, but also in our King Ranch development, but very pleased with the progress carbon engineering makes with their innovation center. So I didn’t want to talk about just the market because we do believe that cost down is important for us. to make this affordable long term. The other mark I’ll give you, just in terms of thinking about kind of sales and how the CDRs fit on the price ranges I think in April European Parliament put together some things around requiring 2% SAF mix starting in 2025 and some of those penalties are $550 per ton of CO2. So when you look at how we can compete directly offset that at a lower cost. We think that’s another mark that really helps us think about how we can be competitive.
Devin McDermott : Great. And then just on the lower carbon spending in your plan this year, I think the offtake and the ability to finance off balance sheet was one of the swing factors. Can you just give us an update on that process as well?
Richard Jackson : Yes. No, I think — look, we remain optimistic that we’re going to have good partners as we think about financing this long term. We’ve been strong in our ability to be able to carry the near term, but we understand longer term that we need financial partners that come into this with us, and we continue to make progress. Just to talk about the capital, we’ve stayed with the range $200 million to $600 million for the year. And really, that reflects that room to bring in that capital partnership by the end of the year
Vicki Hollub : Yes. And I would say, Devin, I appreciate your interest and we will have a bit more of an update in November. I want to give anybody to thinking it’s some sort of major announcement, it’s not. It’s just an update just like what Richard gave now because things are continuing to change with respect to demand for CDRs and that sort of thing. So we’ll give you a little more of that in November.
Richard Jackson : Yes. I think construction progress, I should say, we’re about 23%, I think, to date. So we’ll have more construction progress. We think we can point more to the market. And just kind of follow-up on that deep dive we had last year kind of giving some updates on how these pieces come together.
Operator: [Operator Instructions] The next comes from Scott Gruber with Citigroup.
Scott Gruber : Yes. Just had one question, just following up on that last point. The ADNOC MOU is quite encouraging. But whether it’s ADNOC or another partner? In terms of just thinking about making that equity investment in DAC, do the partners that you’re talking with, do they want to see the learnings from Stratos manifest into lower capital and operating costs DAC 2 or DAC 3 to pull the trigger on an investment? Or do you sense that just showcasing progress in constructing Stratos and getting it up and running would be sufficient to attract equity funding into the program?
