Babcock & Wilcox Enterprises, Inc. (NYSE:BW) Q4 2022 Earnings Call Transcript

Kenny Young: Yeah. So we’re excited about the appropriations language that was — we worked, obviously, a lot with legislation and Ohio State legislation, and other Federal Senators that to support that language on both sides of the aisle. So we had support from the public side, the Democratic side of the aisle to get that language in the DOE. So we’re working with them now, it has to go through the normal appropriations, process and cycle inside the DOE. And so we’ll see how that plays out over the next few months, I don’t — it’s not going to be a quick road to influx of cash to support the commercial demonstration, but it’s clearly there to help support the demonstration, and we’re working with a number of groups within the DOE to bring that to fruition.

At some point in time, that will happen. And the DOE is excited about our program and others. Anytime you’re working with the government, things just take a little bit longer than you would hope and like. But we’re excited to have it there, we look forward to working with them. On the commercial efforts, things are continuing to progress. We talk a lot about the couple opportunities. I think we put out publicly on the potential on the project in Louisiana, and the potential on a project now in Wyoming, using two different fuels, one would be biomass, one would be coal, actually using waste coal in that particular case, and we’re working on a third project that would be utilizing pet coke, which is an oil and gas petroleum waste product to create hydrogen, and isolate capture the CO2 associated with that.

And we haven’t talked publicly too much about the fact that we also produced nitrogen as it relates to the process and we’re able to capture that nitrogen. And we’ve been in discussions with a few companies around the potential use of the nitrogen in conjunction with the hydrogen, in conjunction with the CO2. So we’re seeing some broader applications around that technology, and we’re still on-track with developing those commercial opportunities and why we’re starting to build a pipeline of larger opportunities around BrightLoop, and that would be the natural part of progression for that and we’re seeing that unfold. So we’re bullish on where it’s going and we definitely clearly see the upside. And I think as we get more and more out in the marketplace and as we work with companies like Chart, Fidelis and others to expand our customer reach on that technology.

We’re seeing more and more applications where this come into play, including Europe and as well as Asia. So it’s exciting for us and we’ll continue to advance those over the course of the year and hopefully, we get some announcements out on a few of these more concrete soon, but we’re definitely working hard to get it to that level.

Aaron Spychalla: That’s good to hear. We’ll stay tuned. Thanks for taking the questions.

Kenny Young: Yeah. Thank you.

Operator: The next question comes from the line of Rob Brown with Lake Street Capital. Rob, please go ahead. Your line is open.

Rob Brown: Hi. Good morning.

Kenny Young: Hey, Rob.

Rob Brown: Just a little bit further color on the new — just wanted to get some additional color on the new booking pipeline growth. You talked about waste-to-energy market. Kind of what — was that the main driver of the growth that where you seeing the new booking opportunity growth and some further color on the new booking pipeline?