The challenge is every one of these projects has to go through a local permitting process and to get tied into the grid. And there’s just way more activity than there is administrative support to make that happen. So, the time line for these things, carbon capture and storage, et cetera, it’s just going to take time for these things to come to fruition. But I would say our confidence in the opportunity set in Natural Climate Solutions is higher today than it was when we announced these targets in 2021. It’s just the time line. That’s the big question.
Operator: Our next question comes from the line of Ketan Mamtora with BMO Capital Markets.
Ketan Mamtora: Thank you, and good morning. Within your sort of the Wood Products CapEx outlook that you talked about for 2023, can you talk about sort of two or three key projects that you have for this year?
Devin Stockfish: Yes. So, a couple of things I would highlight. Part of our program, and this has been the case with the exception of our Dierks project, our Millport project and the Holden project that’s ongoing currently. The vast majority of our projects are not really big enormous capital projects, they’re replication projects that are — whether it’s a merchandiser, a new gangsaw, a new CDK, I mean, those are the kinds of projects that we’re really doing across the system. And so it’s all about going in mill by mill according to a multiyear road map, finding the roadblocks and bottlenecks and taking those out so that we can drive down costs, improve reliability, drive efficiencies and then obviously, there’s some come along volume that is a part of that as well.
So, it’s not any particular big project other than Holden, which we did start up the sawmill at the end of last year, we’ll be starting up the planer mill later this year. So, that project is going well. But other than Holden, there’s not any particular project that I would really highlight. It’s just a number of projects, all of which are largely replications of things that we’ve already done in other facilities.
Ketan Mamtora: Got it. That’s helpful, Devin. And then, just very quickly, we are starting to see kind of more European lumber make its way into the U.S. Do you think that there is more room for that to grow in 2023?
Devin Stockfish: I think that’s potentially the case around the margins. We’ve certainly seen more European lumber coming into the market. So, on a percentage basis, year-over-year, it might look like a lot. But relative to the overall North American consumption, it’s still a pretty small percentage. And so, even if we do see a little bit of a pickup in the near term, I don’t think it’s going to fundamentally impact the overall supply-demand dynamic. The one thing I would say is, over time, I would expect that European lumber supply to go down somewhat for a couple of reasons. Number one, with the beetle kill and the fires, et cetera, that we’ve seen across Central Europe, there are a number of years that you’re going to see elevated harvest levels to work through that salvage.
But ultimately, that fiber supply is going to go away. And then the second piece being just with the bans on the Russian and Belarus lumber coming into Europe, if Europe is in a normal state, you would expect more of that European lumber to have to stay domestic. Now obviously, that’s not the case because of the general economic conditions in Europe right now. So you still have, I think, a fair bit of that lumber coming into the U.S. But in any event, over the longer term, I would expect that to moderate, if not go down.
Operator: Our next question comes from the line of Mark Weintraub with Seaport Research Partners.
