Francisco Leon: No, Scott. Yes, we haven’t put out a specific time line, but we — Mac and I and other members of the team, we built together Carbon TerraVault. We think it’s a fantastic business, very excited about that. And as we talk to investors, they want to understand better. Right now, it’s all integrated, all consolidated. They want to understand better how each of the 2 businesses is advancing on a go-forward basis. So we wanted to start. The beginning is to take the steps of Mac moving into — back to the Board, but then having much more direct oversight into Carbon TerraVault by creating a Board seat at the sub level. So that allows him to have that oversight and continue to help from that standpoint. We’re also looking at cost of capital options and looking at flexibility of running the business, and making sure we have the right people and the right assets allocated to the 2 businesses that, at the end of the day, we think should be run separately.
But it’s going to take some time to get there. We were taking all the initial steps and it starts with the messaging today around our structuring decisions. But maybe Mac has a few additional thoughts to share about Carbon TerraVault.
Mark McFarland: So look, I’m really excited about sharing the Carbon TerraVault subsidiary Board and helping advance that. But you’re exactly right. Look, we have a vision that these 2 businesses over time need to be run and potentially separated. And that will mature over time. This is just the first step of many. As you look to stand up a business, it takes a lot of work, but we’re ready to meet that challenge, and I’m excited about it. It is not dependent upon what happens with respect to different commercialization activities of Class 6 or any of that. It’s just over time, there’s a lot of connective tissue, if you will, between the 2 businesses, and we’re going to start looking at how do we effectuate change into an eventual separation down the road.
Scott Hanold: Okay. Okay. Understood. And I would assume the financials are going to be separated going forward? Is that going to happen, or we see that pretty soon here?
Francisco Leon: Yes, that’s the intent to start giving much more visibility into the cost structure and the financial of the business in the near future.
Operator: Our next question comes from Nate Pendleton from Stifel.
Nathaniel Pendleton: Congratulations Francisco.
Francisco Leon: Thanks, Nate.
Nathaniel Pendleton: For my first question, regarding the recent announcement about your planned Direct Air Capture hub. Can you speak to how you view the potential for DAC compared to point source capture projects from an economic and an opportunity perspective for Carbon TerraVault going forward?
Francisco Leon: Yes, absolutely, Nate. We’re very excited about the DAC consortium. And I’m going to let Chris Gould who’s the architect to that to answer the question. Go ahead, Chris.
Chris Gould: Yes, happy to share that. So the value proposition for Direct Air Capture, obviously starts with this DOE opportunity, right? It’s a $3.5 billion funding opportunity that came out of the DOE for a technology that’s at the beginning stages of maturing and coming down the cost curve, much like wind and solar did in the past. We see the opportunity for Direct Air Capture to have a very long runway, building over time. It’s estimated to be in the neighborhood of 15% to 20% of the requirements worldwide in California for emissions removals actually. So it’s a substantial, significant emissions opportunity for CTV. The state has set, to my knowledge, the leading target for Direct Air Capture of north of 60 million tonnes per annum through 2045, and that’s the evidence of the size and scale of it.
