Q4 2021 Origin Materials Inc Earnings Call
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Thank you for standing by this is the conference operator, welcome to the origin materials fourth quarter 2021 earnings call. As a reminder, all participants are in listen only mode on the conference is being recorded.
After the presentation, there will be an opportunity to ask questions to join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call you may signal, an operator by pressing star zero.
I would now like to turn the conference over to Ashish Gupta of Investor Relations. Please go ahead.
Thank you and welcome everyone to origin materials fourth quarter 2021 earnings conference call joining the call today from origin materials, our co CEO Rich Riley co CEO and co founder John Decile and CFO Nate Wally.
How does this call origin issued its fourth quarter press release and presentation, which we will refer to today.
Can be found on the Investor Relations section of our website at Oregon materials Dotcom. Please.
Please note on this call we will make forward looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views as of today should not be relied upon as representative about views of any subsequent date, we undertake no obligation to revise or publicly release the results of any revision to these forward looking statements in light of Neil.
Information or future events.
These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.
For further discussion of the material risks and other important factors that could affect our financial results. Please refer to our filings with the SEC, including our last quarterly report on Form 10-Q filed on November 12 in 2021 and our annual report on Form 10-K to be filed next week.
In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of origin materials performance.
These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.
You will find additional disclosures regarding the non-GAAP .
Measures discussed on today's call in our press release issued this afternoon and our filings with the SEC each of which is posted on our website. The webcast of this call will also be available on the Investor Relations section of our company website with that I will turn the call over to rich.
Thank you Ashish and thanks to everyone for joining us today for today's presentation, we will be referring to the slides are posted to the Investor Relations section of our website earlier. This afternoon I will start by reviewing Q4 highlights then discuss important industry announcements and provide a commercial update I will then turn it over to John who will discuss construction progress on origin, one in Oregon.
Nate will wrap up with the financial overview.
We will begin on slide three.
We continue to make steady progress against our strategic initiatives and are maintaining our expectations for the capital budget and production timelines for both origin won an origin to.
First we remain well capitalized on budget and on track for completion of origin. One by the end of 2022, having achieved several construction milestones during the fourth quarter origin. Two remains on track to be operational by mid 2025.
We recently announced the selection of Geismar, Louisiana is the site location for origin to subject to the Finalization of certain economic incentives state and local incentives are estimated to be more than $100 million. In addition to a municipal tax exempt bond allocation from the state of Louisiana, a $400 million. Today. We are also pleased to announce the selection of hunt going.
<unk> is our owner's engineer origin too.
Second our customer demand has more than quintupled since our announcement to become a public company in February of last year with the uptake in capacity reservations, increasing by over $1.4 billion in the third quarter call in November to 5.6 billion as of today.
And third we remain well capitalized with approximately $445 million in cash and cash equivalents on hand were maintaining our expectation of the capital projects for origin won an origin too can be fully funded from our existing cash on hand, and previously indicated traditional project financing sources.
Now they did in our last call I'd like to give a brief overview of the company for those who are new to the story.
Origin was founded with a mission to help solve climate change by enabling the world's transition to sustainable materials, our patented drop in core technology economics, and carbon impact have gained the support of a growing list of major global brands and investors, including Danone Nestle waters, Pepsico Ford Motor Company, Mitsubishi Chemical Columbia Industries private.
Solvay, Mitsui and Coke in minutes and group Mitsui.
Mitsui <unk> co and management group are new additions to our growing list of partnerships, both of which will increase our exposure to a multitude of consumer and industrial end markets, while also expanding our international footprint.
Our CPG partners to publicly disclose their intent to migrate 100% of their current petroleum based P. T consumption to decarbonize and recycled materials. After extensively testing our technology. These market leaders have made significant financial contributions to Oregon, both investors and customers demonstrating their environmental commitment and confidence in our technology.
They have signed multi year off take contracts worth hundreds of millions of dollars.
We continue to see strong favorable tailwind for our technology and business model, but some of the world's largest public companies committing to zero carbon mandates to help tackle climate change in Japan, we've been encouraged by a recent pickup in de carbonization activity building upon the country's commitment of cop 26 to become carbon neutral by 2050, a recent survey commissioned by NH.
Okay, Japan are the Japan Broadcasting Corporation and found that the majority of participants from 100 of Japan's largest companies believe achieving carbon neutrality within that time frame as possible.
The D carbonization momentum that we're seeing globally is creating significant opportunities for origin, including our strategic partnerships with Mitsui <unk> co and the minutes and group, which we will discuss in more detail shortly.
With more than 99% of plastics made from fossil fuels the world clearly needs to dramatically transform the way it produces and uses plastic as fast as possible.
With our first product origin offers an entirely circular plastic solution, 100% zero carbon recyclable P T, which which the world's plastic recycling infrastructure is already designed to collect sort and reuse with the critical added benefit of removing C O two from the atmosphere.
And that despite the progress and the shift to renewable energy generation in electric vehicles. It is clear that reducing emissions from energy use alone is insufficient to achieve the goals and commitments established by companies and governments. Consequently.
Consequently in the near term, we believe that these companies will need to integrate decarbonize materials into their supply chains.
Such we expect the strong demand environment to continue and remain well ahead of our projected supplies for the foreseeable future.
Turning to slide four we continue to make steady progress commercializing the business and a growing customer demand by more than 1.4 billion since our third quarter earnings call for a total of 5.6 billion today made up of off take agreements and capacity reservations. This has more than quintupled since we announced our intent to go public in February 2021.
Moving to slide five in January we announced the strategic partnership with Mitsui <unk> co to industrialized advanced carbon negative materials and chemicals for the automotive chemicals electronics packaging textiles, construction and personal care industries Mitsui, a global leader in multiple business areas, including chemicals textiles, and many others also signed a multi.
Your capacity reservation agreement to purchase sustainable carbon negative materials for margin.
Consistent with our view that climate change is an urgent international priority. We are excited both by the potential to collaborate with Mitsui on the commercialization of new products and also the opportunity to leverage mitsui's global supply chain reach to target Japanese and international markets.
In February we announced a strategic partnership with medical group to Industrialize high value specialty chemicals based on our carbon negative materials for applications in the pharmaceutical agricultural cosmetics and personal care and automotive industries. The partnership includes multiple collaboration areas and is an important milestone for bringing cost competitive bio based products to these <unk>.
This partnership with management group continues to demonstrate the versatility and broad range of applications for our carbon negative platform technology.
On slide four we are very excited about a new strategic relationship with a major global retail company, which is our first retail partnership we're thrilled to continue to expand into new parts of our total addressable market and into new end markets and look forward to saying more about this partnership and others when appropriate.
In addition to these partnership announcements origin was recognized in November by chemical week for best sustainable product by an emerging company.
As part of chemical week Sustainability Awards 2021.
The award recognizes emerging chemical companies with a product or a range of products, whose design and innovation survey sustainable or environmental purpose.
In January origin was recognized by the business Intelligence group for the company's leadership in innovation and received the 2022 Big Innovation Award. We received the award for our patented category, leading breakthrough technology, which as most of you know is built around converting low cost sustainable wood revenues into decarbonize supply chain ready materials.
With that I'd like to turn it over to John who will provide an update on origin won an origin too.
Thanks, Rich I'm going to begin on slide seven I provide an update on origin won an order in Q1, our first plant exactly as I can in Sarnia, Ontario, we remain well capitalized and on track for completion by the end of 2022, we continue to execute on our construction timeline achieving several project milestones ahead of schedule further derisking, our overall project schedule.
As we disclosed on our third quarter call in October 2021, we completed the installation of key production modules that contain equipment used for the conversion of biomass fleet back into high value chemicals. Six months ahead of the plan announced in April 2021, and then kind of evaporated module system was placed and bolted three months ahead of schedule in accordance with the accelerated target where Jim provided.
In November 2021, as I mentioned last quarter, the any kind of operator module system, that's used for recovery and regeneration of the equity of stage of our process and important part of how we recycle water in the plant.
We've continued to make progress in 2022 installation of structural elements in interconnecting piping. The main plant modules are in progress is largely completed.
<unk> will work for the majority of the auxiliary parts selling to tank farms is also complete.
Typing fabrication, which began earlier this year, it's more than three months ahead of the plan announced in April and faster than the pulled forward target that we laid out for you on our third quarter earnings call in November further derisking our schedule.
If you refer to slide 10, you will see a picture of a large delivery of carbon steel pipe and structural steel, which will utilize the fabricated pipe modules in shop during the cold winter months process. We expect to continue for several months. It will take time to complete the models, which will be held.
The origin one for site type for installation will be finishing of heightened modules are sending them to the site and installing them over time.
As we've described before Oregon has chosen a modular construction approach whereby our equipment can be fabricated offsite generally indoors. There are several advantages to this method for one modular construction can offer control over environmental conditions, and therefore more predictable production.
Especially when considering very cold winter condition. Additionally, modular construction gives you better control over the quality of the work.
Turning to an update on orchard to our first world scale manufacturing facility. The plant remains on track to be mechanically complete operational in mid 2025.
<unk> two will produce carbon negative materials used to make peace classic, which is used in packaging textiles apparel and other applications and tactical more carbon which can be used in fuel powered activated carbon as a replacement for carbon black front end design is well underway and origin Xbox detailed ensuring to begin in 2023.
We recently announced that we've selected the sites for working two in Geismar, Louisiana subject to Finalization of economic incentives. We expect the 150 acre facility will create an estimated 500 construction jobs 200, local politicians and between 500000 indirect local jobs. The plant will convert an estimated $1 million dry metric tonnes of sustainable wood residues each.
And the products for a wide range of end markets. We're incredibly excited about the site and went through an extensive process to choose what we believe is ideal location or two we started the process looking at over 40 sites. Then we narrowed our life using criteria that we knew would be important to our facility things like access to ethylene.
Lot of ways, a rail access and other factors. We subsequently narrowed upside down 15 at many of which we visited a person who assess further than during our third quarter 2021 earnings call. We described that we've narrowed the west after only three sites and now we are pleased to tell you more about the Geismar, Louisiana location for our first world scale facility.
I'll tell you some of the reasons that we believe the Geismar site is the ideal location fortunate too.
Baton Rouge, and New Orleans have extremely skilled labor pools across refining pulp and paper boyfriend Academy peaks arc logistics and chemicals in general.
That will give us access to plentiful sustainable feedstock for use in production, including residuals are waste wood from local large scale pulp mills and clubhouse. In addition, the site has an excellent transportation assets.
Wait access around and also sits along the Mississippi River with easy bar to access the Gulf Coast, which cycle for the distribution of our intermediates.
It also gives us access to reliable utilities.
With the local industrial cluster offering access to hydrogen pipelines ethylene pipeline side with an organic species water and wastewater.
Propose incentive package, we're building in the area is also compelling.
With pending state and local governments at this estimate it would be worth $100 million. In addition to the private activity bond volume cap allocation of $400 million from the state of Louisiana, We were able to pursue this allocation because the origin to sustainable feedstocks with rescue all types of waste material under the tax code origin to will in essence be converting waste wood residues.
N C useful carbon negative and recycled materials.
This is a great example of how the circular economy will work in the future and Dave will cover the financing in more detail later now.
When we laid out our initial plans for its public company, we explain that our strategy may involve co location with the pulp and paper Mills co location, we still believe can play a meaningful role in creating efficiencies for one of our future plant. However for origin to we ultimately decided not to pursue the strategy. The reason is that the Geismar site is in fact.
Much better than the pulp side, we would expect to find the site sits at a confluence of nearly every utility we need plus all the relevant infrastructure and still have access to sustainable feedstocks. We also expect to integrate substantially with the local community and this is not just an isolated plant we've.
We see many opportunities to place origin products into local industrial ecosystem and to participate as a customer in that ecosystem as well on balance we thought that was ultimately more value and we're utilizing the woodyard and utilities about pulp mill and that said, while we ended up not co located with the pulling off what we're going to we will continue to explore that tracking for future points.
We're grateful for the partnership of Louisiana Economic development, the Baton Rouge area Chamber and Ascension parish of course for the support that they provide us in.
In the site selection process, we look forward to working with all involved and to being a part of the community for years to come.
And lastly, I want to say that we are very proud of the team for achieving this milestone is a big cross functional undertaking the team did a great job and they stop which is excellent.
And in New store site selection news, we're pleased to announce our selection of husky on associates or HCA as owners engineer for Archie to the owners engineer has an important role that provides full service engineering to support and augment origin in all phases of the project I'm fully designed to construction they split everything from logistics planning detailed scheduling cost forecast progress tracking.
In reporting and integrating the different work streams.
<unk> will serve as an independent advocate for origin represent representing us during design development and construction that's already there should've been working for years, the highest standards one advantage of HCA in particular, they're headquartered in Louisiana. They have offices in Houston and Baton Rouge, So theyre close to many tier one engineering companies to decide in Geismar and too much of the origin departure.
They also have proven experience as an owner's engineer in multiple projects were over $1 billion and have extensive wood handling and forest products experience, which is an important part of the project. We're thrilled to be partnering with a company. They she is caliber for this important role.
Before I conclude I'd like to give you some additional detail about what we're working on unfortunately right now presently the team is laying out the Oregon to plot plan based on equipment sizing and starting to build the three categories.
We're working closely with fiber suppliers in Louisiana, Mississippi to develop optimal delivery strategies for rail truck and barge on the construct ability for site access and on right of way contracting for rail pipeline from raws and summarize the team has continued to make significant progress and we continue to expect origin one to be completed by the end of 2020.
Two with origin to on track to be operational by mid 2025, and with that I will turn it over to Nate to discuss some of the financial details.
Thanks, John .
I will begin with some commentary on our fourth quarter results, our financing expectations for arch and one in Oregon to finish with our 2022 outlook speaking to slide 18 fourth quarter operating expenses were $7 8 million compared to $5 5 million during the same period in the prior year full year operating expenses were $26 9 million.
Adjusted EBITDA loss was $6 6 million for the fourth quarter compared with a loss of $3 8 million in the same period in the prior year full year adjusted EBITDA loss was $20 million.
And finally net income was $5 2 million for the fourth quarter compared to a net loss of $23 5 million in the same period in the prior year full year net income was $42 1 million.
Turning to our balance sheet origin ended the fourth quarter with $444 6 million in cash and cash equivalents in marketable securities. We are pleased to maintain our expectation of fully funding the construction of both plants using our existing balance sheet cash and cash equivalents as previously indicated traditional financing sources for the financing of origin to the state of Louisiana pending Finalization.
As expected to award private activity bond volume cap allocation to us in the amount of $400 million private activity bonds are tax exempt bonds authorized by the state and local governments and the financing of qualified projects with private capital.
We also expect to receive more than $100 million in pending state and local incentives, we continue to consult with leading financial institutions that specializes in financing capital projects such as origin to and are pleased to reaffirm our financing assumptions fortune two remained reasonable and achievable.
400 million private activity bond allocation from the state of Louisiana provides a strong foundation for the financing of origin too.
And in combination with certain 2021 infrastructure investment and jobs Act persuasion could enable the debt financing of orchard to using entirely tax exempt bonds. We also continue to work with these institutions on other forms of traditional private financing at the federal loan programs, including through the USDA and the department of energy.
As we mentioned at our Q3 call in November inflationary pressures remain a focal point based on our most recent analysis. We continue to expect construction costs to remain within our overall capital budget and as discussed previously we projected approximately $100 million of excess cash beyond the capital budget for or should one in Oregon too. In addition to contingencies already included in our capital project Budge.
However, we acknowledged the situation remains fluid we look to update our cost estimates such that we can communicate any changes to the market as appropriate as we continue to make progress towards our targeted 2025 completion date.
To wrap up with our initial outlook for the full year 2022, we're providing guidance for capital expenditures of up to 155 million and an adjusted EBITDA loss of up to $36 million with that I'll turn it back to rich for closing remarks.
Thank you Nate to close I'm incredibly proud of what the origin team accomplished in 2021 and encouraged by the strong momentum that we continue to see for our industry, leading technology in 2022 as the world moves aggressively to zero carbon future.
Like to thank all of our customers for their commitments to Oregon, our team in construction and engineering partners for their contribution to our company's success and our shareholders for their continuous support.
And with that I would like to ask the operator to open the line for questions.
We will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you will hear a tone acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then two.
We will pause for a moment as callers trying to kill.
Okay.
The first question is from Steve Byrne from Bank of America. Please go ahead.
Yeah.
Yeah, we celebrate kind of filling in for Steve. Thanks.
Thanks for taking my questions. So the first thing I wanted to understand a little bit batteries. If you can provide more color on what products Julian I mean, nothing that we'd like to our planning on producing from euro.
I see them as if you have any more details that you can share.
Yeah. Thanks for the question.
Can't disclose more than we've already shared in the slides and in our in our press release, but we're very excited about.
Partnership with medicine.
No. They are a significant fine chemicals producer and an example of us partnering with a company that can.
Take our products into even higher value and very specialized applications across a wide range of industries, including pharmaceutical agricultural cosmetics in automotives and so it's a it's a very broad partnership and we're collaborating across multiple products.
Okay, great and with respect to the second plant in Geismar.
I was wondering.
Is that you mentioned be very we're going to have to pipelines for hydrogen mother.
Inputs.
Would you consider and who did allow you for example to make a to go further down the value chain make other building blocks for P P or.
Are you going to produce just CMS, then you're going to use that that says.
More to sell to customers nearby.
Yeah, Great question. Thanks.
Generally speaking we view the Geismar plant is one that's going to go all the way through to a para xylene and so it won't just be producing CMS will also be doing the downstream conversion of CMS in Chad and did that P. T related intermediates.
And that's you know as you picked up that's why access ready access to those kinds of additional reagents is really quite valuable for that plant.
Great and just one last one on the 100 million incentives from the state, but or are these going to breed provide that are over the life of the project or over the duration of the construction what is the timeline for these.
Yeah, No Greg Great question I'm glad you asked it's a combination of both what we're looking for for first I should just reiterate John's comment that.
We were really appreciative of the of the state of Louisiana.
Baton Rouge, Eric Chamber, and Ascension parish for their their partnership but Oh. The project what are the incentives rather or are a combination of both over the lifetime of the plant and during a construction. So we're tremendously excited about that as well as as rich pointed out earlier.
The $400 million of private activity bond allocation, which we think is a just a tremendous foundation for the financing.
Great. Thank you very much.
The next question is from Frank Mitsch from Fermium Research. Please go ahead.
Hey, good morning, gentlemen, and I really appreciate the color, especially on the on the site selection because as you mentioned, John we were kind of thinking that it was gonna be located you know and and and and and and all pulp and paper mill, but obviously geismar is a is a chemical hotbed.
Struck by the increase in the AR offtake agreements and capacity reservations up another $1 2 billion I'm curious as to how you think about the margin potential margins of that business. If I think about you know where the price of oil was.
Even just when we had our conference call three months or so ago to where it is today and where it may may go how do we think about the margins on the on some of this additional new a new business.
Yeah. Thanks, Frank.
It's one $4 billion is certainly a very strong quarter in terms of adding to our to our demand.
We continue to see pricing a ball.
In a favorable direction as we as we go through time and you know the deals we're doing are.
Meet or exceed the revenue and margin expectations, and our financial projections and so I would say things continue to develop favorably and we continue to sign deals across a wide range of geographies and markets.
This quarter with with minimum rent, which we've talked about you know mitsui, which is a massive player, especially in Japan, but globally and then also a major retail partner, which represents our first new retail partnership and so we continued to see strong demand and strong pricing.
Got you understood and and speaking of the the.
Financial projections that you had laid out in the past I'd note that 2022 you anticipated when.
When you are when you rolled out to spend about 126 million our capex youre looking at 155, obviously 'twenty one came in a little bit lighter, but is there anything else that we should read into the upsizing of your 'twenty 'twenty 2022 capital expectations.
No not I am not at all I mean, the the the upsizing of our 2022 really reflects just a deferral of of costs that we expected we might incur when we rolled out the original 2021 projections. So this is really just reflective of actual actual turn.
We've gotten from our contractors.
Progress, we're making on an origin to us we may as we progressed through now from site selection, which we've just announced through the through the F. B L. A design gates too.
So everything is just is moving along we're really about we've reaffirmed our overall project budgets. So everything is is moving along exactly as we foresaw.
Thank you very much gentlemen.
The next question is from Bob <unk> from Goldman Sachs. Please go ahead.
Hi, This is Emily <unk> on for Bob with demand now exceeding $5 6 billion would you guys be able to provide any color on the breakdown between off take agreements and capacity reservations and then how that ratio might have changed since the third quarter.
Yeah, Hi, Emily.
We're not providing that breakdown at this time, we continue to believe that our overall.
Number is the most accurate representation of demand, but I will say that we continue to make progress on converting capacity reservations into uptick agreements and remain very confident that we will have sufficient.
Sufficient offtake agreements in place and plenty of time for the financing of origin too.
Okay, Great and then one more question I think that in the slides you guys mentioned the origin to site and Geismar as being subject to the Finalization of economic incentives do you know what the timeline looks like for when we might learn more there.
Yeah.
Those are our routine.
Routine approvals that are the they go through whether it's the governor's office or the state and local jurisdictions that'll be finalized over the over the coming months.
Thank you.
Yeah.
As a reminder, it is star one to ask a question.
The next question is from Eric Stine from Craig Hallum. Please go ahead.
Hi, everyone. Thanks for taking the question.
So you had a <unk>. So you had a pretty exhaustive search obviously for the site for plant two.
Just curious how that maybe changes or increases your confidence in terms of looking beyond plan too.
Because obviously given the demand you're talking about you know it won't be too long before you have to start thinking and you probably already are thinking about plant three and then just curious I mean, geismar, obviously, a pretty generous incentives.
The municipal bond.
Availability there just curious kind of what you found at other locations as you went through the process.
Yeah, Eric Thanks for the question.
As you surmise, you know having gone for now.
Relatively fine tooth comb a lot of the sites and are in the areas of interest for us in North America. We saw lots of sites that were I would say not just good enough, but but really quite nice sites and for us there.
Fortunately the last quarter or two it's been more about which you figure out which of these sites is absolutely the best site for our for our Orchard to plant rather than struggling to try to find an acceptable site. There are lots and lots of really good sites out there, so and even though that the site market evolves year by year, and we're really really.
Confident that theres going to be plenty of space for us to build a bunch of origin threes and fours and fives in Texas.
It really really enjoyed that site searching and I'd say it did increase our confidence in the ready availability of sites that would fit our specs on.
Yeah. Thanks.
Thanks for the questions I appreciate it.
Yes.
Would assume I mean part of that it's obviously you know whether it's co located or just location with all of the factors that you're thinking about but I mean.
There would also be incentives, maybe not quite where they are for guys, where maybe they are but I mean is that a fair assumption as well I would think.
Oh right alright, thanks for asking the second part of your question.
[laughter] yeah. So generally speaking we did see I'd say, a pretty robust incentives response across you know there's obviously you don't you don't chase down the incentives for all of the 40 and more sites that we have looked at right. It's really later in the process did you drive incentives.
Discussions more so in a more concrete way so I wouldn't say, we got you now I'm mapping of literally the incentives for all of those different types, but I'd say the hikes that we dove down on we really did see quite a generous incentives often the packages could look quite different and so it wasn't just a straight apples to apples.
Parison across each of these besides Canadian tennis packages, but there was there was a lot of desire to have a de carbonization projects as part of the the various regions. So we often were I would say considered a special and quite unique.
And extraordinarily desirable project.
Each of the regions and the fact that we were looking at which I think really one makes sense in our macro environment and two bodes well for our future discussions.
Yes, absolutely.
Well, maybe last question for me you know whenever right.
Whenever you give that number that Nick.
Grows every quarter in terms of demand what I keep coming back to us just scarcity value and just curious how that kind of plays into the customer discussions and then how that also plays into something that rich just talked about for a previous question just moving customers from capacity arrangements.
Two actual offtake.
Yeah.
Yeah. So we.
As you can see in the numbers, we continue to see exceptional customer demand and it's.
You know it's grown from a year ago, primarily in the packaging space to now include apparel in automotive in textiles and.
A wide range of industrial partnerships and new this quarter, a major retail partnership and then it also expand geographically as.
As we announced major partnerships in Asia, and Europe , and and so we continue to see strong growth. There is you know customers see those numbers too and can see that.
There's a incredible demand and I think that does drive some urgency in terms of getting materials, but fundamentally our customers and potential customers are really trying to hit their net zero and sustainability goals and.
Many of them find that we are one of the best if not only ways to address this portion of it which is the emissions footprint that comes from the products they make and so.
We continue to see really strong demand and are excited to keep moving into additional categories additional products and additional geographies.
Okay. Thanks.
[noise].
Question is from Graham price from Raymond James. Please go ahead.
Hi, good afternoon, and thanks for taking my questions looking through the slide deck. It looks like the operating metrics for origin to on slide 20 are unchanged.
Just wondering if there was any upside to the contribution.
Estimates kind of based on now that you have you know the.
The Geismar site selected.
Or whether those are fairly agnostic to site selection.
Yeah. Thanks for asking the question generally speaking.
There will be.
<unk> as a result of Geismar, specifically I, you know generally I'd say, they shouldn't be dramatic update them in any way shape or form.
<unk>.
Frankly speaking you know theres a process when we say we reaffirmed something that generally means that the you know what they can do it a little bit update interim information and so at.
At this point, we decided relatively recently and don't feel like we've gone through enough of a process to really fine tune those numbers beyond what we've provided previously so at this point I think it's reasonable to think of them as profit similar we don't expect there to be something dramatically different.
Got it understood and then I guess quickly for my follow up.
Just as a reminder, once origin one starts out how long is it expected to reach for that to reach our full capacity.
Yeah, so rather than thinking about it in terms of full capacity and we think about it in terms of meeting our protections that we provided thus far we have we think it will meet those protections you know quite handily.
And so we're pretty comfortable there in general plant like this can take a quarter.
Quarter, a couple of quarters that come up to full capacity, but it's on a plant by plant basis.
But we're comfortable that we're going to meet the protections that we've laid out.
Understood. Thank you very much.
Mhm.
This concludes the question and answer session I would like to turn the call back over to rich Riley for any closing remarks.
Yeah.
Thank you all for joining us today, and we look forward to continuing to update everyone on our progress.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
Okay.
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