Q2 2023 Green Plains Partners LP Earnings Call

Speaker 1: turn the call over to Todd Becker. Thanks, Phil. Good morning, everyone, and thanks for joining our call today. During the quarter, we were challenged by several events that held us back a quarter from showing you the results of the transformation as we experienced.

Thanks, Phil and good morning, everyone and thanks for joining our call today. So during the quarter. We were challenged by several events that held us back a quarter from showing you. The results of the transformation as we experienced several significant events that negatively impacted what would have been a good quarter. The first was our wood River incident, which took one of our largest locations down for most of this quarter.

Speaker 1: several significant events that negatively impacted what would have been a good quarter.

Speaker 1: The first was our Wood River incident, which took one of our largest locations down for most of the quarter.

Speaker 1: This impact to the company was over 18 million dollars in total and we expect some recovery from insurance in the last half of the year. So some of this will be coming back.

Impact to the company was over $18 million in total and we expect some recovery from insurance in the last half of the year. So some of this will be coming back and in addition during Q2 our platform was in need of significant upgrades to prepare for 2024 and beyond and while we had some planned downtime. We also experienced a high level of unplanned downtime in Gen one which.

Speaker 1: In addition, during Q2, our platform was in need of significant upgrades to prepare for 2024 and beyond. And while we had some planned downtime, we also experienced a high level of unplanned downtime in Gen 1, which also had an impact on Gen 2 production volumes and sales and hedges that we had in place already to lock the quarter in.

Also had an impact on Gen. Two production volume and sales in hedges that we had in place already locked at quarter end the challenges at our other plants came later in the quarter and it really was a June event in the highest margin environment, which we are unable to take advantage of with that said, we would put Q2 hedges onto locking over 20 cents a gallon results an unfortunate timing of these.

Speaker 1: The challenge is that our other plants came later in the quarter and really was a June event in the highest margin environment, which we were unable to take advantage of. With that said, we had put Q2 hedges on to lock in over 20 cents a gallon and results. An unfortunate timing of these events took most of that away. On the last call, we indicated 12 to 17 cent a gallon opportunity on paper and we were attracting accordingly and better through the end of May, but did not get Wood River released back to us and up and running until a week later than expected in addition to unplanned outages.

Of these events took most of that away in the last call. We indicated 12 to 17 cents a gallon opportunity on paper and we're tracking accordingly, and better through the end of May, but theyre not yet wood River released back to us and up and running until weeks later than expected. In addition to unplanned outages with this downtime behind US we are now operating at near full.

Speaker 1: With this downtime behind us, we are now operating at near full rate for both ethanol and ultra-high protein operations. And even more important, Wood River is making new production records as the team has done a great job getting the plant back to service. But more importantly, the state of the team there is good after the tragedy they experienced.

Right for both ethanol and ultra high protein operations and even more important.

River is making new production records as the team has done a great job getting the plant back to service, but more importantly, the state of the team. There is good after the tragedy they experienced because of these events our operations team diligently completed extended spring shutdowns at many of our locations, resulting in an 81, 5% utilization rate for the <unk>.

Speaker 1: Because of these events, our operations team diligently completed extended spring shutdowns at many of our locations, resulting in an 81.5% utilization rate for the quarter. Our operations leadership team implemented process control improvements to improve reliability and increase ultra-high protein production.

<unk>, our operations leadership team implemented process control improvements to reprove reliability and increase ultra high production Ultra high protein production.

Speaker 1: All in, this downtime positions our assets to operate reliably during the third and fourth quarter with solid margins on paper today. And at least half of our locations are now capable of foregoing their typical fall shutdowns, enabling additional production during these higher margin periods we are seeing in corn oil, protein, and solid ethanol fundamentals.

All in this downtime positions our assets to operate reliably during the third and fourth quarter with solid margins on paper today and at least half of our locations now capable of foregoing their typical fall shutdowns, enabling additional production. During these higher margin periods, we are seeing in corn oil protein and solid ethanol fundamentals.

Speaker 1: Now onto the quarter, which Jim will cover more in depth later. Our consolidated crush margin was one cent per gallon. But again, we are prepared for a solid last half. Between Wood River, negative absorption, repairs, and lost opportunity for both protein and ethanol, there was a 15 to 20 cent impact on the overall consolidated crush minimum.

Now onto the quarter, which Jim will cover more in depth later consolidated crush margin was one cent per gallon, but again, we are prepared for a solid last half between wood river negative absorption repairs and lost opportunity.

Protein and ethanol.

The 15 to 20 <unk> impact on the overall consolidated crush minimum our financial position remains very strong with significant liquidity and with a laptop opportunity and margins. We don't see a significant change to this strength as we returned to free cash flow generation.

Speaker 1: Our financial position remains very strong with significant liquidity. And with the last half opportunity in margins, we don't see a significant change to this strength as we return to free cash flow generation during the last half, which will help pay for the large part of the capital needed for our build out for the rest of the year.

During the last half, which will help pay for the large part of the capital needed for our build out for the rest of the year.

Speaker 1: In addition, we entered into a failed contract to divest our 55 million gallon accounts in the Brasco facility as it does not meet our parameters to justify making investments for our technology improvement.

In addition, we entered into a sale contract to divest our 55 million gallon Atkinson, Nebraska facility.

As it does not meet our parameters to justify making investments for our technology improvements.

Speaker 1: For where we are going with Green Plains, this asset did not fit our long-term vision. And once it closes, we believe this transaction will be accretive. We expect to close in the next few weeks and bring the capital back on the balance sheet, and further increase in our financial strait as we optimize our asset base.

Or where we're going with Green plains.

This asset did not fit our long term vision and once it closes we believe this transaction will be accretive we expect to close in the next few weeks and bring that capital back on the balance sheet.

Further increasing our financial strength as we optimize our asset base.

Speaker 1: We expect to replace these volumes with either an expansion at one of our large locations where our technologies are running, which is very accretive, or look for an acquisition opportunity where we can immediately add technologies, therefore not expanding fuel supplies in the market.

We expect to replace these volumes with either an expansion at one of our larger locations, where our technologies are running which is very accretive or look for an acquisition opportunity, where we can immediately add technologies, therefore, not expanding fuel supplies in the market.

Speaker 1: I will take you through a detailed recap of our transformation progress later in the call and walk you through how we are thinking about the last half of the year. But for now, I want to reiterate that the fundamentals across each area of our strategy are strong and improving.

I will take you through a detailed recap of our transformation progress later in the call and walk you through how we are thinking about the last half of the year, but for now I want to reiterate that the fundamentals across each area of our strategy, our strong and improving.

Speaker 1: Core ethanol demand continues to look solid and is tracking higher than prior year. With 94 million acres of corn versus 84 million acres of soybeans, the price spreads remain in favor for both protein and corn oil, and timely rains this summer have improved USDF estimates for crop conditions in the West.

Core ethanol demand remains to look continues to look solid and is tracking higher than prior year with 94 million acres of corn versus 84 million acres of soybeans. The price spreads remained favor for both protein and corn oil and timely rains. This summer have improved the USDA estimates for crop conditions in the west.

Speaker 1: Finally giving an opportunity again to source our inputs a little bit easier than in the past several years. In fact, we have seen continued pressure on the Western corn bases just recently, especially NewCrop in 2024.

Finally give me an opportunity again to source, our inputs a little bit easier than in the past several years. In fact, we have seen continued pressure on the western corn basis, just recently, especially new crop in 2024.

Speaker 1: Our ultra-high protein production is once again achieving rates of 800 to 1,000 tons per day. After the extensive downtime taken in the second quarter, we are seeing production rates as designed and have hit over 1,000 tons per day on multiple days.

Our ultra high protein production is once again achieving rates of 800 to 1000 tonnes per day.

After the extensive downtime taken in the second quarter, we are seeing production rates as designed and have hit over 1000 tonnes per day on multiple days.

Speaker 1: We are planning to dedicate one of our sites to 60% protein production later this quarter and begin to build supply chain for delivering 60% to the market during the fourth quarter. I will get more into this exciting development later as well.

We are planning to dedicate one of our sites to 60% protein production later this quarter and begin to build supply chain for delivering 60 pro to the market during the fourth quarter and we'll get more into this exciting development later as well.

Speaker 1: One really interesting data point is our investments were made on a 3 to 3.5 pounds per bushel yield a protein. And we have now achieved the highest five pounds with the MSC technology from FluoChip. And in fact, since Wood River has returned to full rate, they have averaged well over four pounds.

One really interesting data point is our investments were made on a three to three five pounds per bushel yield of protein and we have now achieved as high as five pounds with the MSC technology from fluid quip and infections Wood River has returned to full rate they have averaged well over four pounds, which overtime increases our capability to produce higher volumes.

Speaker 1: which over time increases our capability to produce higher volumes and have better capital efficiencies. No other technology in the world can achieve these rates.

And have better capital efficiencies no other technology in the world can achieve these rates.

Speaker 1: The future of our platform is within sight and with our clean trigger facility on track to start up in early 2024, we are fast approaching being able to demonstrate the true potential of our full vision at one of our refineries. And now I hand the call over to Jim to provide an update on the overall financial results.

The future of our platform is within sight and with our clean sugar facility on track to start up in early 2024, we are fast approaching being able to demonstrate the true potential of our full vision at one of our refineries and now I'll hand, the call over to Jim to provide an update on the overall financial results.

Speaker 2: Thank you Todd, and good morning everyone. Green planes consolidated revenues for the second quarter were $887.6 million. $154.89 or approximately 15% lower than the same period a year ago.

Thank you Todd and good morning, everyone.

Green Plains consolidated revenues for the second quarter were $887 $6 million.

$164 8 million or approximately 15% lower than the same period a year ago.

Speaker 2: The lower revenues correlate to the lower production gallons of approximately 16% year over year for the second quarter. Our plant utilization rate was 81.5% during the quarter, comparing to the 96.9% run rate reported in the same period last year.

The lower revenues correlate to the lower production gallons of approximately 16% year over year for the second quarter. Our plant utilization rate was 81, 5% during the quarter compared comparing to the 96, 9% run rate reported in the same period last year.

Speaker 2: As Todd mentioned earlier in the call, we anticipate our plants perform much better in the second half of 2023, targeting utilization rates in the load of mid 90% to range of our state of capacity with all plants now operating.

As Todd mentioned earlier in the call, we anticipate our plants to perform much better in the second half of 2023 targeting utilization rates in the low to mid 90 percentage range of our stated capacity with all plants now operating.

Speaker 2: For the quarter, we reported net loss of tributable to green planes at $52.6 million or an $89.0 loss per unit share. That compares to net income of $46.4 million or $73.0 per unit share for the same period in 2022.

For the quarter, we reported net loss attributable to Green plains of $52 6 million.

Or an 89 loss per diluted share that compares to a net income of $46 4 million or <unk> 73 per diluted share for the same period in 2022.

Speaker 2: Adjust the divada for the quarter was a negative $14.9 million compared to the 56.7 million in the prior year as well as 2022.

Adjusted EBITDA for the quarter was a negative $14 9 million compared to $56 7 million in the prior year as well as 2022.

Speaker 2: The appreciation and amortization expense was higher by 3.7 million versus a year ago due to the addition of the MC technology builds all online and operating at the end of last year.

Depreciation and amortization expense was higher by $3 7 million versus a year ago. Due to the addition of the EMC technology builds all offline and operating.

At the end of last year.

Speaker 2: We realized a one cent per gallon consolidated crush for Q2 of 23 that compares to a 28 cent per gallon crush in the prior year.

We realized a <unk> <unk> per gallon consolidated crush for Q2 of 'twenty three that compares to 2008 per gallon crush in the prior year on.

Speaker 2: On a sequential quarter to quarter basis, we saw the consolidated crush margin per gallon strength in eight cents when compared to the first quarter of this year. Our ag and energy segment recorded a 2.9 million in EBITDA that's about 7.9 million lower than the prior year. This decline was driven by lack of opportunities on our merchant businesses which edged and flowed with each year quarter to quarter.

On a sequential quarter to quarter basis, we saw the consolidated crush margin per gallon strengthened <unk> when compared to the third quarter of this year.

Our AG and energy segment recorded a $2 9 million in EBITDA, that's about $7 $9 million lower than the prior year. This decline was driven by lack of opportunities in our merchant businesses, which ebbs and flows with each year quarter to quarter.

Speaker 2: For the second quarter, our SGA costs were all seven, it was $33.3 million compared to $30.1 for Q2 of 2022. This increase was driven by increased legal fees associated with GPP buy-in and increased personal costs, including severance costs. I'd like to remind our college we do consolidate GPP and green planes in this SGA costs, so that would be legal fees on both sides for both in.

For the second quarter, our SG&A costs for all segments was $33 $3 million compared to $30. One for Q2 of 2022. This increase was driven by increased legal fees associated with GPP buying in and increased personnel costs, including severance costs I'd like to remind our callers we do consolidate GPP.

Green Plains, Inc.

SG&A costs, so that would be legal fees on both sides for both entities inter.

Speaker 2: Interest expense of 9.7 million for the quarter includes the impact of debt amortization capitalized interest, which was higher than the 7.8 million reported for the second quarter last year due to reduced capital interest as certain projects had been completed.

Interest expense of $9 7 million for the quarter includes the impact of debt amortization capitalized interest, which was higher than the $10 8 million reported for the second quarter of last year due to reduced capital interest as certain projects have been completed.

Speaker 2: I would like to note that our interest income was approximately too many hired in the second quarter of 23 when compared to the same period a year ago.

I would like to note that our interest income was approximately 2 million higher in the second quarter 2003, when compared to the same period a year ago.

Speaker 2: The income tax benefit for the quarter was right at $1 million compared to a tax expense of 2.9 for the period in 2022. At the end of the quarter, the net loss, the net loss carry forward are available to the company where $140 million, which may be carry forward indefinitely. We continue to anticipate that our normalized tax rate for green planes in excluding minority interest should be around 21%.

The income tax benefit for the quarter was right at $1 million compared to a tax expense of $2 nine for the period in 2022 at the end of the quarter. The net loss the net loss carryforwards available to the company were $140 million, which may be carried forward indefinitely. We continue.

To anticipate that our normalized tax rate for Green Plains, Inc. Excluding minority interest should be around 21%.

Speaker 2: Our liquidity position remains solid and at the end of the quarter we had 359.8 million and cash, cash equivalence and extruded cash, along with approximately 128 million available under working capital revolver.

Our liquidity position remains solid and at the end of the quarter, we had $359 8 million in cash cash equivalents and restricted cash along with approximately $128 million available under working capital revolver.

Speaker 2: We are focused on executing the next steps of transformation and have the capital and liquidity to do so.

We are focused on executing the next steps or transformation and have the capital and liquidity to do so.

Speaker 2: For the second quarter, we allocated $17 million to capital cross-platform, which included 10 million to our Clean Sugar Build in Chanadoa and MSC Protein Initiatives. About four million of those also allocated to other growth initiatives and approximately $3 million for maintenance, safety and regulatory cap.

For the second quarter, we allocated $17 million of capital Cross platform, which included $10 million to our clean sugar build in Shenandoah.

And MSC protein initiatives about $4 million that was also allocated to growth other growth initiatives and approximately $3 million toward maintenance safety and regulatory capital.

Speaker 2: for the remainder of 23. WENTISPAPE CAPEX will be in the range of $60 to $90 million as we continue to work through the timing of permitting for MSE technology deployments at a couple of our largest plants.

For the remainder of 2003, we anticipate capex will be in the range of $60 million to $90 million as we continue to work through the timing of permitting for MSC technology deployments at a couple of our larger plants.

Speaker 2: Green Plains Partners reported net income of 9.3 million and an adjusted ebit of $12.7 million for the Q2 of 2023, which was in line with the $12.9 million reported for the same period of the year ago. The minimum volume commitment supported the partnership state financials during the quarter while plant utilization rates at green planes were lower than the prior year.

Green Plains partners reported net income of $9 3 million and an adjusted EBITDA of $12 7 million for Q2 of 2023, which was in line with the $12 9 million reported for the same period a year ago. The minimum volume commitment supported the partnership steady financials during the quarter, while plant utilization rates at Green plains were lower than that.

Prior year.

Speaker 2: The partnership declared a quarterly distribution of 45.5 cents per unit with a .99 times coverage ratio for the quarter.

The partnership declared a quarterly distribution of $45.05 per unit with a 99 times coverage ratio for the quarter.

Speaker 2: The partnership just also reported a shareable cash flow of $10.7 million of the quarter, slightly lower than the 11.3 for the same quarter of 2022.

The partnership.

Reported distributable cash flow of $10 7 million for the quarter slightly lower than the 11, 3% for the same quarter of 2022.

Speaker 2: Over the last 12 months, the partnership produced adjusted EBITDA of $50.9 million.

Over the last 12 months the partnership produced adjusted EBITDA of $50 9 million distributable cash flow of $43 5 million and declared distributions of $43 2 million, resulting in a one tier one times coverage ratio, excluding any adjustment for the principal payments made in the past year.

Speaker 2: The distributor will cash low of $43.5 million and declare distribution to $43.2 million resulting in a 1.01 times coverage ratio excluding any adjustment for the principal payments paid in the past year.

Speaker 2: As a reminder, on May 3rd, 2023, the company submitted a non-binding, preliminary proposal to the Board of Directors of Green Plains Holdings, LLC, the General Partner of Green Plains Partners LP to acquire all the publicly held common units of the partnership not already owned by Green Plains.

As a reminder, on May three 2023, the company submitted a non binding <unk> preliminary proposal to the board of directors of Green Plains Holdings LLC. The general partner of Green Plains Partners LP to acquire all of the publicly held common units of the partnership not already owned by Green Plains the.

Speaker 2: The complex committee of the Board of Directors of the General Partner have been delegated the authority to evaluate and is currently evaluating the possible concerns of a proposed transaction. Now I'd like to turn the call.

The conflicts committee of the board of directors of the general partner had been delegated the authority to evaluate and is currently evaluating the possible parents of a proposed transaction.

Now I'd like to turn the call back over to Todd.

Speaker 1: Thanks Jim, so there's a lot to talk about and I know we have limited time and while Q2 was challenging the last half of 23 and 24 look solid and our path forward is gaining traction and looking better.

Thanks, Jim So theres a lot to talk about and I know, we have limited time, and while Q2 was challenging the last half of 'twenty, three and 'twenty four looks solid and our path forward is gaining traction and looking better for a couple of years now we've been talking about the transformation to a two point out AG tech sustainable producer of high value ingredients focused on the <unk>.

Speaker 1: For a couple of years now, we have been talking about the transformation to a 2.0 ag tech, sustainable producer of high value ingredients focused on the four pillars of protein, renewable corn oil, clean sugar, and decarbonization, and the future is now.

<unk> of protein renewable corn oil clean sugar and de carbonization and the future is now quickly on de carbonization, which is a bit out of our normal order, but probably underappreciated. This is one of the several reasons, we are gaining traction and our clean sugar technology products and protein carbon scores do matter.

Speaker 1: quickly on decarbonization, which is a bit out of our normal order, but probably underappreciated. This is one of the several reasons we are gaining traction in our clean sugar technology products and protein.

Speaker 1: Carbants scores do matter. We are now less than two years away from what we believe a significant financial opportunity when we decarbonize a majority of our platform because the incentive structures are firmly in place.

We are now less than two years away from what we believe is a significant financial opportunity when we decarbonize a majority of our platform.

Incentive structures are firmly in place don't underestimate our discount our carbon and pipeline strategy as we believe all roads will lead to alcohol to jet sustainable aviation fuel production importantly, though.

Speaker 1: Don't underestimate or discount our carbon and pipeline strategy, as we believe all roads will lead to alcohol-to-jet, sustainable aviation fuel production.

Speaker 1: Importantly though, CI, carbon intensity of all of our ingredients will be reduced even further, which is a key selling point for our ultra high protein today, and our clean sugar technology dextrose in the future. We literally received our latest protein life cycle carbon intensity yesterday score.

Hi, carbon intensity of all of our ingredients will be reduced even further which is a key selling point for our ultra high protein today, and our clean sugar technology dextrose in the future. We literally received our latest protein lifecycle carbon intensity yesterday score.

Speaker 1: which showed a 46% lower score for our high protein products, compared to corn gluten meal globally, aligning this data with PEF.

Which shows a 46% lower score for a hype for our for our high protein products compared to corn corn gluten meal globally aligning this data with P F.

Speaker 1: ISO and ISCC plus rules. This is very important to pet food and aquaculture producers globally. In addition, our CST carbon intensity cannot be matched by current products in the market today, which is why we are in significant negotiations with more demand than we can supply over the next several years. More later on this as well.

So an ICC plus rules. This is very important to pet food and aquaculture producers globally. In addition, our CST carbon intensity cannot be matched by current products in the market today, which is why we are in significant negotiations with more demand than we can supply over the next several years more later on this as well our decarbonize.

Speaker 1: Our decarbonization opportunities, that now should at least add 120 to 180 million annualized economic opportunities, starting in the last half of 2025. We have also executed a few different new contracts are on our carbon strategy that give us the confidence to use this number and we have more to go.

Our de carbonization opportunities so that now it should at least at $120 million to $180 million annualized economic opportunity starting in the last half of 2025.

We have also executed a few different new contracts are on our carbon strategy that give us the confidence to use this number as we have more to go.

Speaker 1: Our protein initiatives remain on track, and our commercial successes continue to see strong results, even with our reduced rates in Q2, which was a short-term impact. Our turnkeyed JV with Therelson and North Dakota is anticipated to begin operations in the first quarter of 2024, with our Madison and Fairmont locations on deck next, pending permitting from Illinois and Minnesota.

Our protein initiatives remain on track and our commercial successes continue to see strong results, even with our reduced rates in Q2, which was a short term impact our turnkey JV with <unk> in North Dakota is anticipated to begin operations in the first quarter of 2024, with our Madison and Fairmont locations on deck next pending permitting from Illinois.

In Minnesota.

Speaker 1: Completing those three facilities would increase our annual marketing capacity by 250,000 tons, bringing our total annual run rate to 580,000 tons of ultra-high protein production, including full turnkey rates, which is very close to what we had laid out for our 2025 volume.

Completing those three facilities would increase our annual marketing capacity by 250000 tons, bringing our total annual run rate to 580000 tons of ultra high protein production, including full turnkey rates, which is very close to what we had laid out for our 2025 volumes. We believe this number grows as our yields at each site get much better.

Speaker 1: We believe this number grows as our yields at each site get much better and match would river. The 2025 economic uplift remains in the $150 to $210 million range that we have pointed out for the last couple of years.

And match Wood River, the 2025 economic uplift remains in the $150 million to $210 million range that we have pointed out for the last couple of years protein margins have gotten stronger for two main reasons first our reorder rate remains high and even more important our prices continue to increase in relation to our input costs.

Speaker 1: Protein margins have gotten stronger for two main reasons. First, our reorder rate remains high and even more important, our prices continue to increase in relation to our input cost.

Speaker 1: second, well during the ramp up over the first few years, the corn soy relationship near-ode. This is now normalized and we are seeing initial margins on new sales in the range of 15 to 17 cents per gallon uplift for that site, which is why our ability to run Gen 1 platform full out is important, and that hurt us in the second quarter as we indicated. We continue to see great success in the marketing of the ingredient and our insignificant late stage discussions with commercial counterparties for our 60% protein product.

Second during the ramp up over the first three year few years, the corn soy relationship narrowed. This is now normalized and we are seeing initial margins on new sales in the range of 15% to 17 cents per gallon uplift for that site, which is why our ability to run jenne. One platform fallout is important and that hurt us in the second quarter as we are.

<unk>, we continue to see great success in the marketing of the ingredient and are insignificant late stage discussions with commercial counterparties for our 60% protein products.

Speaker 1: We expect our first commercial shipments beginning in the fourth quarter, and we continue to believe that 20 to 30% of our platform could be 60% protein sales during 2024. Our ultra high protein has a higher protein concentration than soybean meal, and it does without the anti-nutritional fact.

We expect our first commercial shipments beginning in the fourth quarter and we continue to believe that 20% to 30% of our platform could be 60% protein sales during 2020 for our ultra high protein has a higher protein concentration in soybean meal and it does without the anti nutritional factors and importantly, our fermented use product for pet food.

Speaker 1: And importantly, our fermented yeast product for pet food application gives a further nutritional advantage versus soybean meal and other high protein offerings. Now, depending on the customer, we can tailor biological recipes now to suit their needs for protein and yeast. And our partnership with Nova Zimes allows this to happen as we are now beginning to see the fruits of those labors as well. We don't believe anyone in the world can do what our companies are doing together.

<unk> gives a further nutritional advantage versus soybean meal and other high protein offerings now depending on the customer we can tailor biological recipes now to suit their needs for protein in east and our partnership with Novozymes allows this to happen as we are now beginning to see the fruits of those labors as well we don't believe anyone.

In the World can do what our companies are doing together we.

Speaker 1: We have been pointing to these opportunities for some time now and the future is now. Two other quick points.

We have been pointing to these opportunities for some time now and the future is now two other quick points.

Speaker 1: First, we are now producing for the first time ever non-GMO Ultra-High Protein. We will shift to customers for initial analysis and trials over the next several months. The cost will be high, but the returns will be higher. Second, post this production run being completed next week. We expect to dedicate one of our MSC locations as a 60-pro facility to produce commercial quantities to shift in Q4 and 2024, and hope to keep that location on this program for the majority of its production.

First we are now producing for the first time ever non GMO Ultra high protein, we will ship to customers for initial analysis and trials over the next several months the cost will be high but the returns will be higher second post. This production run being completed next week, we expect to dedicate one of our MSA locations as a 60 pro.

<unk> to produce commercial quantities to ship in Q4, and 2024 and hope to keep that location on this program for the majority of its production.

Speaker 1: Renewable corn oil prices have seen a recent resurgence in strength as renewable diesel capacity continues to come online.

Renewable corn oil prices have seen a recent resurgence in strength as renewable diesel capacity continues to come online.

Speaker 1: We are seeing renewable corn oil pricing consistently achieved premiums to soybean oil due to the lower carbon intensity of our product. As a result, we are once again seeing corn oil pricing in the 65 to 75 centipound range. And remember, under the 45Z clean fuel production credit, our low CI, renewable oil is further advantage to soybean oil starting in 2025. And I think that is also underappreciated.

We are seeing renewable corn oil pricing consistently achieve premiums to soybean oil due to the lower carbon intensity of our product as a result, we are once again seeing corn oil pricing in the 65 to 75 cents a pound range and remember under the 45 Z clean fuel production credit or low Ci renewable oil is further advance.

The soybean oil starting in 2025 and I think that is also under appreciated.

Speaker 1: For our Clean Sugar Initiative, our engineering teams and construction crews at Shenandoah continue to make great progress on construction.

For our clean Sugar initiative, our engineering teams and construction crews at Shenandoah continue to make great progress on construction.

Speaker 1: And the project continues to be on track for mechanical completion in late 2023 and start up in early 2024.

And the project continues to be on track for mechanical completion in late 2023 and startup in early 2024, we're doing something that has never been done at a dragline facility, creating a truly revolutionary bio refinery and using that to create a lower carbon intensity dextrose than what is available today in the market.

Speaker 1: We are doing something that has never been done at a dry grind facility, creating a truly revolutionary biorefinery, and using that to create a lower carbon intensity deck strokes than what is available today in the market. Customer interest remains very high, and we are confident we will have a majority of the first year's capacity spoken for, prior to start up, and expect to have a announcement of commercial sales commitments before the end of the year.

<unk> interest remains very high and we are confident we will have a majority of the first year's capacity spoken for prior to startup and expect to have announced the commercial sales commitments before the end of the year.

Speaker 1: The last half of 2023 obviously looks completely different from the first half for us. As we are operating and positions deliver stronger utilization numbers due to the shutdowns we took in the second quarter. And we are well positioned to hit the target of run rates for our protein and oil businesses that we have laid out.

The last half of 2023, obviously it looks completely different from the first half for us as we are operating in a position to deliver stronger utilization numbers due to the shutdowns. We took in the second quarter and we are well positioned to hit the targeted run rates for our protein and oil businesses that we have laid out.

Speaker 1: At today's pricing, Renewable Corner alone could contribute $70 to $80 million for the second half of 2023, on pace for the annualized run rate we have discussed in the past.

At today's pricing renewable Cornwall alone could contribute $70 million to $80 million for the second half of 2023 on pace for the annualized run rate. We have discussed in the past the uplift from our protein business is back on pace for the run rates. We have discussed previously and believe there is upside to that number depending on the level of 60% protein sales we have in 2024.

Speaker 1: The uplift from our protein business is back on pace for the run rates we have discussed previously, and believe there is upside to that number, depending on the level of 60% protein sales we have in 2024. But all in, adding in agon energy and net of corporate overhead, we are setting up for a strong finish for non-ethanol contributions during the back half of the year as we have previously guided.

But all in adding in AG and energy and net of corporate overhead we are setting up for a strong finish for non ethanol contributions during the back half of the year as we have previously guided to.

Speaker 1: The current outlook for our Gen 1 platform is materially stronger than the recent past. Favorable corn market drivers and an anticipated larger carryout, coupled with improved year-over-year driving demand, has led to an expansion in the ethanol margin, setting the back half of 2023 to be stronger across all of our areas of our business.

The current outlook for our Gen. One platform is materially stronger than the recent past favorable corn market drivers and an anticipated larger carryout, coupled with improved year over year driving demand has led to an expansion in the ethanol margin setting in the back half of 2023 to be stronger across all of our areas of our business.

Finally.

Speaker 1: I want to provide a brief technology update. As we indicated on our last call, we are working towards some exciting technology news for fluid clip technology.

I want to provide a brief technology update as we indicated on our last call. We are working towards some exciting technology news for fluid quip technologies, the first which was fulfilled in our shelf for fiber conversion technology or <unk> announcement about our collaboration.

Speaker 1: The first, which was fulfilled in our Shell Fiber Conversion Technology or FFCT announcement about our collaboration.

Speaker 1: with Aquilani subsidiary of Shell one of the largest world largest energy companies should not be discounted as well. Because we have been working with them since early 2021 to develop a process to combine firmitation, precision mechanical separation, and processing and fiber conversion into one platform. They are building a very large pilot FSTT facility adjacent to our York Innovation Center, where we are adding the MSP process side by side.

With Exelon a subsidiary of shell one of the largest world the world's largest energy companies should not be discounted as well.

As we have been working with them since early 2021 to develop a process to combine fermentation precision mechanical separation and processing and fiber conversion into one platform. They are building a very large pilot SFC facility adjacent to our York Innovation Center, where we are adding the MSC prop.

<unk> side by side.

Speaker 1: Recruiting for this venture is well underway and getting into the public sphere helps these efforts.

Recruiting for this venture is well underway and getting into the public sphere helps. These efforts. So what is that what is it that we are doing this collaboration combining MFC with SFC T represents an innovative technology for agricultural processing and allows us to breakdown a kernel of corn into its high value products, leaving nothing behind.

Speaker 1: So what is it that we are doing in this collaboration? Combining MSC with SFCT represents an innovative technology for agricultural processing and allows us to break down a kernel of corn into its high-value products leaving nothing behind.

Hi.

Speaker 1: In addition to the fermentation and precision separation technology that we have been using at green planes and flu equipped, this collaboration as a chemical breakdown step of the fiber portion of what has already been separated through the biological and mechanical means, which is significantly different than anything you've seen in the past, increasing the amount of protein that can be recovered, capturing all remaining renewable corn oil, and producing salosic sugars, which expands the ability to make low carbon ethanol.

In addition to the fermentation and precision and separation technology that we have been using at Green Plains and flew equip this collaboration as a chemical breakdown step of the fiber portion of what has already been separated through the biological mechanical means which is significantly different than anything you've seen in the past increasing the amount of protein.

Can be recovered capturing all remaining renewable corn or corn oil and producing cellulosic sugars, which expands the ability to make low carbon ethanol.

Speaker 1: which we believe could be a key component for each doc for FAAF and for other low carbon ethanol markets like Canada. Set another way.

Which we believe can be a key component feedstock for Saf and for other low carbon ethanol markets like Canada.

Yet another way.

Speaker 1: This process will convert our lowest value co-product, DDGS, or dry distillers grains into three high value products, renewable corn oil, ultra high protein, and say, a lot of gas and oil. It's really just the next step in decarbonizing our platform, and maximizing the value added products from our bio-refining process.

This process will convert our lowest value co product <unk> or dry distillers grains into three high value products renewable corn oil ultra high protein and Cellulosic ethanol. It's really just the next step and Decarbonising our platform of maximizing the value added products from our bio refining process, we anticipate to start up in 2020.

Speaker 1: We anticipate to start up in 2024, which is not far away. And we will look to commercialize this technology at one of our MSC facilities that we have already built, which is lower capital intensity for us upon achievement of key milestone.

For which is not far away and we will look to commercialize this technology at one of our MFC facilities that we have already built which is lower capital intensity for us upon achievement of key milestones.

Speaker 1: In addition, FluEquip has its first MSE technology sale into Europe . The opportunity not only further validates FluEquip's MSE as being the leading precision test separation technology globally.

In addition, fluid quip has its first MSC technology sale into Europe , the opportunity not only further validates fluke grips MSC as being the leading position.

Separation technology globally.

Speaker 1: But it also demonstrates feedstock flexibility and efficiency as the application will be for wheat as its primary feedstock. MSV can work with corn, wheat, and sorghum blends, which opens the door to additional markets around the world.

But it also demonstrates feedstock flexibility and efficiency is the application will be for wheat as its primary feedstock MSC can work with corn wheat, sorghum blends, which opens the door to additional markets around the world.

Speaker 1: In addition, fluid-quist patents we just got stronger as we were issued four new patents this quarter two related to clean sugar one for related to protein which includes oil recovery and one focus on enzyme recycling of converting pulp cellulose based material into sugars

In addition, fluid quip patents, we just got stronger as we were issued four new patents this quarter to related to clean sugar one for related to protein.

Which includes oil recovery and one focus on enzyme recycling of converting pulp cellulose based material into sugars. We also expect more broad patent coverage globally for clean sugar technologies to be issued very shortly as we have been informed by several countries. They are coming.

Speaker 1: We also expect more broad patent coverage globally for clean sugar technologies to be issued very shortly as we have been informed by several countries they are coming.

Speaker 1: The value of flu-equipped IP port folio is a key differentiator for green planes. And while a lot of time underappreciated these latest announcements, we're gonna demonstrate the value of the investment in flu-equipped made in 2021.

The value of fluke its IP portfolio is a key differentiator for differentiator for Green Plains, and while often underappreciated. These latest announcements begin to demonstrate the value of the investment in fluid quip, we made in 2021.

Speaker 1: We truly have a revolutionary technology company whose IP we are deploying to reinvent our platform into Green Plains 2.0.

We truly have a revolutionary technology company, whose IP, we are deploying to reinvent our platform and the Greens Green Plains 2.1.

Speaker 1: We have been pointing to this future for some time now. And although we have seen some setbacks, with the success we are seeing across all of our pillars, the opportunities we are executing on are just ahead of us. And we believe the future is finally upon us and is now. And with that, I'll leave it there. Thanks for joining our call today. And let's start the question and answer session.

We have been pointing to this future for some time now and although we have seen some setbacks with the success. We are seeing across all of our pillars. The opportunities. We are executing on our just ahead of us and we believe the future is finally upon us and is now and with that I'll leave it there. Thanks for joining our call today now let's start the question and answer session.

Okay.

Speaker 3: Thank you. In order to ask a question, press star, then the number one on your telephone keypad. Please limit your questions to no more than two at this time. If you wish to ask additional questions, please rejoin the queue. We will pause now for a minute to compile the Q&A.

Thank you in order to ask a question press Star then the number one on your telephone keypad. Please.

Please limit your questions to no more than two at this time.

Do you wish to ask additional questions. Please rejoin the queue we.

We will pause now for a minute.

The Q&A roster.

Speaker 3: Your first question comes from Greg Erwin from Ruth Capital. Greg, please go ahead. Good morning.

Your first question comes from Greg <unk> from <unk> capital Greg. Please go ahead.

Hi, good morning, and thanks for taking my questions.

Speaker 4: God, so hey, good morning. So.

Hey, good morning.

So.

Speaker 4: Hi bro, now 910 today, line of sight on Shaking Pro. You did exactly what you said you would do, right? There's been a lot of learning there and it's kind of been, you know, nothing ever.

Hydro down 900 tonnes, a day line of sight on shaky probe.

You did exactly what you said you would do right.

There's been a lot of learning there and it's kind of been.

Okay.

Nothing ever goes in a straight line right.

Speaker 4: And most investors these days are now starting to look forward to clean sugar.

And most investors. These days are now starting to look forward to clean sugar.

Speaker 4: Can you maybe just describe for us some of the things that you learned from the rollout of high growth that translate into clean sugar? Obviously you're starting in a different place given the own fluid clip here. But I'm sure there's some important things you can share with us to help us understand what clean sugar looks like from an execution standpoint with all the learnings you've had in the last couple of years.

Can you maybe just describe for us some of the things.

What you've learned from the rollout of high growth.

They translate into clean sugar, obviously, you are starting in a different place given the fluid quip here, but I'm sure. There's some some important things you can share with us to help us understand what.

Sugar it looks like from an execution standpoint.

With all the learnings you've had in the last couple of years.

Speaker 1: Yeah, I think thanks for the question. I think our ramp up for sugar will be significantly different from learnings we had in our ramp up from protein. We underappreciated.

Yes, I think thanks for the question I think our ramp up for sugar will be significantly different from the learnings we had in a ramp up from protein we underappreciated.

Speaker 1: the difficulty at times to put a new technology in place, but I think as we roll out more and more of our sites, we learned every day and then we saw better results.

The difficulty at times to put a new technology in place, but I think as we rollout more and more of our sites. We learned everyday and then we saw better results.

Speaker 1: in terms of how we built them and how we run them and we're even seeing it today it just

In terms of how we built them and how we run them and we're even seeing it today. It just as we optimize our protein technologies. When we built these assets we thought we'd have a 3% to three five pound per bushel yield and we now know based on our partnership with Novozymes as well as things we can do mechanically.

Speaker 1: as we optimize our protein technologies, you know, when we built these assets, we thought we'd have a 3 to 3.5 pound per bushel yield. And we now know, based on our partnership with NOAA's I'm as well as things we can do mechanically, we will be able to achieve five pounds per bushel consistently, which allows us not only to hit our laid out numbers that we put out there in terms of volumes for 2025, but exceed them as well.

We will be able to achieve five pounds per bushel consistently which allows us not only to hit are laid out numbers that we put out there in terms of volumes for 2025, but exceed them as well as we continue to get more and more out of these systems and debottleneck them took a little bit longer than I think we appreciate it but we're going to take those learnings apply them to sugar.

Speaker 1: as we continue to get more and more out of these systems and debottle them. Took a little bit longer than I think we appreciated, but we're gonna take those learnings to apply them to sugar. Sugar is a two to three hundred million pound system that we're building right now. And the difference as well is that we went out and

<unk> sugar is a two to 300 million pound system that we're building right now and a difference as well is that when we went out and hired.

Speaker 1: what we believe are experts in wet milling and making dextrose.

While we believe our experts in wet milling and and making dextrose.

Going all quite frankly to crystallize.

Speaker 1: Dextrose as well. And so we have set up very, very differently so that it's not Gen 1 dry grind.

<unk> as well and so we have set up very very differently. So that it's not gen. One dry grind.

Speaker 1: management running these assets. It's actually a wet milling team that we hired from several of the largest in the world that wanted to come work for us on this revolutionary technology implementation.

Talent management.

Running these assets, it's actually a wet milling team that we hired from several of the largest in the world that wanted to come work for us on this revolutionary technology implementation.

Speaker 1: because we believe this is really the future of our company. And so on top of that, then, we wanted to get ahead of marketing the product in terms of...

Because we believe this is really the future of our company and so on top of that then we wanted to get ahead of marketing the product in terms of this takes a product longer to market all the way through food, but industrial use of dextrose remains high and so one key differentiator for us was to.

Speaker 1: This takes a product longer to market all the way through food, but industrial use of Dextrose remains high. And so one key differentiator for us was to get on our carbon scores very early, because this product is a significant reduction in carbon intensity, which is a big deal for both industrial and food products. So when we start up, we're folks.

Get on our carbon scores very early because this product is a significant reduction in carbon intensity, which is a big deal for both industrial and food products. So when do we start up our focus on hopefully selling out to industrial markets and then ultimately it should take us about four to six months to get food grade certified and we are already food grade certified in the process at our <unk>.

Speaker 1: Hopefully selling out to industrial markets and ultimately it should take us about four to six months to get food grade certified And we are already food grade certified in the process at our York facility

<unk> facility will get food grade certified at a better facility in Shenandoah and then start to hit the food market later in 2024 and start to look at where do we where do we go next do we increase Shenandoah capacity, which is fully expandable that's how we designed it.

Speaker 1: We'll get food grade certified at a better facility in Shenandoah and then start to hit the food market later in 2024 and start to look at where do we go next? Do we increase Shenandoah capacity, which is fully expandable? That's how we designed it.

Speaker 1: or do we move to other locations where we have interests in geographic demand that they want us to build closer to their sites or they want to co-locate on our property. So...

Or do we move to other locations, where we have interest and geographic demand that they want us to build closer to their sites or they want to colocate on our properties. So.

Speaker 1: And we just approached it very differently, but this product is so much more valuable in total to what our bottom line impact can be versus protein, which is why this technology, we believe, is just such a game changer for us. But, you know, this one we're going to roll out very carefully and make sure that, number one, we don't overload the market, but number two, we come online and think about all the things long before we start these up that can take away some of the length that it takes to start up technology.

And we just approached it very differently, but this product is so much more valuable in total to what our bottom line impact can be versus protein, which is why this technology. We believe is just such a game changer for us but.

This one we're going to roll out very carefully and make sure that number one we don't overload the market, but number two we come online and think about all the things long before we start these up that can that can take away some of the the length that it takes us startup technologies.

Speaker 4: Thank you for that. So the other big question out there right now is with the MLP, not too many weeks away from being consolidated, right? Let's hope our small number. This opens up the field for you to much more easily execute on M&A.

Thank you for that.

The other big question out there right now is with the.

The MLP.

Not too many weeks away from being consolidated acquaintance, let's hope for a small number.

This opens up the field for you too much more easily execute on M&A.

Speaker 4: And in the past, you've been very active. And even had some interesting situations where, you know, one of the chunky portfolios you had an opportunity to offer a vastly superior proposal to one of the sellers, I think because of a tax-advanced structure for them. Can you maybe...

And in the past you've been very active and even had.

Some interesting situations where one.

One of the chunky portfolios you've had.

An opportunity to offer a vastly superior.

Proposal to one of the sellers I think because of.

Tax advantaged structure for them.

Can you maybe.

Speaker 4: update us on how active you've been over the last couple years as far as evaluating message and whether or not your appetite is likely to be for single plants or possibly portfolios. You know, what are the complications these days as far as actually executing acquisitions in the broader sort of ethanol plantable?

Update us on how active you've been over the last couple of years as far as evaluating assets and whether or not your appetite is likely to be single plants or possibly portfolios and.

What are the complications these days as far as actually executing acquisitions in the in the broader sort of ethanol plant market.

Speaker 1: That's a lot to unpack there. Let me just focus on a couple things. We continue to negotiate with complex committee and really can't talk much more than that. I'm bringing the MLPN. We talked about in the past some of the reasons why we want to do that. And we'll just leave it at that just because we're at in the process. Secondly, from an acquisition standpoint, we've been on the sidelines a bit. They are ethanol plants in general are harder to buy in the size scope and scale that we want.

Well, that's a lot to unpack there, but let me just focus on a couple of things we continue to negotiate with the conflicts committee and really can't talk much more than that I'm, bringing the MLP and we talked about in the past some of the reasons why we want to do that and we'll just leave it at that just because of where we're at in the process.

Secondly from an acquisition standpoint, we've been on the sidelines a bit they are ethanol plants in general are harder to buy in the size scope and scale that we want to.

Speaker 1: to apply our technologies to them. And as you saw, we divested a small plant for us to just locationally

To apply our technologies to them and as you saw we divested a small plant for us to dislocation Ali geographically.

Speaker 1: geographically and also the way that logistics work out there just won't fit our long-term.

And also the way that the logistics work out of there just won't fit our long term strategy around protein oil sugar and de carbonization, but if it's somebody else's, which is good but it was a smaller subscale plant to what we want to operate in the future.

Speaker 1: strategy around protein oil sugar and decarbonization, but if it's somebody else's, which is good. But it was a smaller sub-scale plan to what we want to operate in the future.

Speaker 1: Acquisitions are hard, they're expensive, the value of our assets have gone up. If you want to build one today, replacement value for an ethanol plant in the midwestern, in the Midwest is $225-$250 a bushel minimum.

Acquisitions are hard they are expensive the value of our assets have gone up if you want to build one two day replacement value for ethanol plant in the Midwestern and the Midwest is $2 25 to $2 50, a bushel minimum.

Speaker 1: That's a gallon, sorry, $2.25 to $2.50 a gallon minimum. And that's before you add on any of our technologies as well. So M&A is pretty difficult. We absolutely want to begin to re-expand our platform over the next several years and look for opportunities. But everything got more expensive, which replacement cost is meaningful in this industry. And why is it meaningful? Because.

That's a gallon sorry, $2 25 to $2 50, a gallon minimum and Thats before you add on any of our technologies as well. So M&A is pretty difficult, we absolutely want to begin to re expand our platform.

Over the next several years and look for opportunities, but everything got more expensive, which replacement cost is meaningful in this industry and why isn't meaningful because before you even take a look at ethanol margins have somewhat recovered blends are going up we believe our technologies can be applied but more importantly, if you are sitting on one of the pipelines or.

Speaker 1: Before you even take a look at ethanol margins have somewhat recovered, blends are going up. We believe our technologies can be applied, but more importantly, if you're sitting on one of the pipelines or a summit, for example, which can get built as quick as probably quicker than most.

The summit for example, which can get built as quick as probably quicker than most.

Speaker 1: you're in an advantaged position. And there's going to be the haves and the have-nots in the next couple of years of who gets up and running first. And that's why we chose Summit as one of our partners is because we think that'll be the haves. And that'll get built first. And you could have a multi-year advantage over those that are not on a pipeline that is operating yet. So.

You're in an advantaged position and theres going to be the haves and the have nots in the next couple of years of who gets up and running first and Thats. Why we chose summit is one of our partners is because we think that will be the haves and that'll get bill first and you'll have you could have a multiyear advantage over those that are not on a pipeline that is operating yet so.

Speaker 1: You know, that's why people, when you look at acquisitions, you have to value very different this industry in the past. And if we get to jet fuel, which you've already seen projects being announced.

That's why people when you look at acquisitions that you have to value very different this industry in the past and if we get to jet fuel, which you've already seen projects being announced the.

Speaker 1: The value of an asset to produce low carbon alcohol and low carbon feed stocks is just going to continue to go up. Now we're standing some of the volatility we faced. So we absolutely would love to expand our platform. We don't really want to build a bunch more fuel capacity and we have some sites we can expand a little bit so we can take advantage of being on a pipeline.

The value of an asset to produce low carbon alcohol and low carbon feedstocks is just going to continue to go up notwithstanding some of the volatility we face. So we absolutely would love to expand our platform. We don't really want to build a bunch more fuel capacity I mean, we have some sites we can expand.

Little bit so we can take advantage of of being on a pipeline.

Speaker 1: But also if you take a look at place like Shen and Doa, where we're gonna take capacity out of the market as we build up our clean sugar, that'll give us an opportunity as well.

But also if you take a look at places like Shenandoah, where we're going to take capacity out of the market as we build up our clean sugar that'll give us an opportunity as well so.

Speaker 1: You know, they're out there, but it's getting much harder and much more expensive to do M&A in this industry. It's not like it was a few years ago, no matter what the margin is in any given quarter, by the way. Great, well, thank you for that.

They're out there, but its getting much harder and much more expensive to do M&A in this industry. It's not like it was a few years ago no matter what the margin is in any given quarter by the way.

Great well, thank you for that I'll hop back in the queue.

Thank you.

Speaker 3: Next question comes from Adam, Samuel, soon from Goldman Sachs. Please go ahead. Oh, yes, thanks.

Next question comes from Adam Samuelson from Goldman Sachs. Please go ahead.

Yes. Thank you good morning, everyone.

Good morning Ann.

Speaker 5: Hi, so I guess the first question just maybe making sure we're clear on kind of the quarter and kind of how you're framing the second half. I think in the prepared remarks, how did you talk to the Wood River issue and the other on plan and plan down time kind of potentially.

Hi.

So I guess the first question, just maybe making sure we're clear on kind of the quarter and kind of how you're framing the second half.

I think in the prepared remarks, Todd you talked to.

Wood River issue and the other unplanned and planned downtime.

Potentially.

Speaker 5: Result of leaving up 20 cents a gallon of margin on the table. As we look forward with the network now operating at high rates less downtime in the second half of the year and where the forward curves are at your mix of.

Yeah.

<unk> 'twenty.

<unk> <unk> a gallon of margin.

On the table.

As we look forward with the with the network now operating at high rates less downtime in the second half of the year.

The forward curves are in your mix.

Speaker 5: Typherome corn oil, is that kind of margin level, or that margin level plus kind of the right way to think about second half EBITDA?

Hi problem corn oil.

Is that kind of margin level.

Or that margin level plus.

Kind of the right way to think about second half EBITDA.

Speaker 1: Yeah, I mean, it's ebbing and flowing. We saw a nice expansion back yesterday, but yeah, I think you're not far from those ranges today, if not potentially even better. And look, I mean, part of our Q2 was also the fact when you don't run and the market expands and the prices go up.

Yes, I mean, it's ebbing and flowing we saw a nice expansion back yesterday, but yes, I think youre not far from those ranges today, if not potentially even better.

And look I mean part of our Q2 was also the fact when you don't run in the market expands and the prices go up you can't execute on high price contracts, which then becomes a bit of a double whammy having to buy those in.

Speaker 1: You can't execute on high-priced contracts, but then becomes a bit of a double amy having to buy those in or having to cancel them and to the advantage of the person on the other side.

Having to cancel them and to the advantage of the of the person on the other side. So.

Speaker 1: You know, for us it was, you know, we were tracking really well and, and unfortunately all of our big sites hit hit at the same time and, while we had planned down times at several of them, they turned into unplanned down times as well and.

For us it was.

We are tracking really well and unfortunately, all of our big sites.

Hit hit at the same time and while we had planned downtime at several of them they turned into unplanned downtime as well.

Speaker 1: And so it wasn't just really just missing the margin it was actually having to.

So.

It wasn't just really just missing the margin was actually having to buy.

Speaker 1: buy in hedges and also buy in sales, high price protein sales as well that heard us. So going forward, if we get clean, and as we're clean right now,

By and hedges and also by in sales of high <unk> high priced protein sales as well that.

That hurt us so going forward as if we get clean and when as were clean right now.

Speaker 1: You know, that's when we have the real opportunity to kind of achieve those type of margins and more and we saw them higher even since then, but they've come down a little bit.

When we have the real opportunity to kind of achieve those type of margins and more than we saw them higher even since then but they've come down a little bit.

Speaker 1: as that corn rally went up very fast and now it's come down. I think ethanol numbers are improving again. We saw a couple weeks of builds. So I think we're setting up for a basic, you know, a pretty good fundamental outlook for just the base fuel in the last half and then protein.

As that corn rally was went up very fast now has come down I think ethanol numbers are improving again, we saw a couple of weeks of builds so I think we're setting up for a pretty good fundamental outlook for just the base fuel in the last half and then and then protein as.

Speaker 1: As we indicated, when you have the corn soy spread doing what it's doing and corn sitting around $5 and soy sitting around...

As we indicated when you have the corn soy spread doing what it's doing in corn sitting around $5 and soy sitting around.

Speaker 1: You know, our soil meal is sitting over $440. Obviously inverted in the next year. It's really in the favor of our strategy again. And while we got a lot of questions from our shareholders, about a year and a half ago when that spread narrowed, I think this ebbs inflows, but it's really favorable for not just last half but 2024 as well. And we're seeing a good pickup in demand as our product continues to get better and better inclusion rates in rations across all the animal sectors, including pet food and aquaculture.

Our soy meal sitting over at $440, obviously inverted into next year, it's really in the favor of our strategy again and while we've got a lot of questions from our shareholders about a year and a half ago when that spread narrowed I.

I think this ebbs and flows but its really favorable for not just last half of 2024 as well and we're seeing a good pick up in demand as our product continues to get better and better inclusion rates and rations across all of the animal sectors, including pet food and agriculture.

Okay.

Speaker 5: Okay, now that's really helpful. And if I could just ask a follow up on high pro commercialization, you talked about a 60%.

Okay No that's.

That's really helpful and if I can just ask.

Follow up on on high Pro commercialization, you talked about a 60%.

Speaker 5: kind of 60% sales that you're working on and selling, getting those sales done in the fourth quarter. Can you help us frame where the premium versus regular flamio or regular UHP would be? Just as we think about the incremental contribution from getting meaningful proportions of your production to a 60% level. And why?

60% sales that are that youre, working on and selling getting those sales done in.

In the fourth quarter can you help us frame, where the premium versus regular soy meal or regular uhm would be just as we think about the incremental contribution from getting meaningful portions of your production to a 60% level.

<unk>.

Speaker 5: we will take to push a higher proportion of your high-pro production up into that 60% rate.

Right.

We will take two.

A higher proportion of your hydro production up into that 60% range.

Speaker 1: Yeah, our first step is just to start competing, really as a replacement for corn, good, and meal, and soy protein constraints. And that's really where our replacement is, the...

Yeah. Our first step is just to start competing in really as a replacement for corn gluten meal and soy protein concentrates and Thats really where our replacement is the.

Speaker 1: You know, as we've seen soil meal increase and the corn spread, corn and soy spread go in our favor for 50 pro.

As we've seen soy meal increase and the corn spread.

Corn and soy spread.

Go in our favor for 50 pro when Youre competing against a corn gluten meal the spread between corn gluten meal and soybean meal have narrowed a bit so.

Speaker 1: When you're competing against a corn gluten meal, the spread between corn gluten meal and soy meal have narrowed a bit.

Speaker 1: You know, while we'll deal with that a little bit, I mean, what we can see today is at least...

While.

We'll deal with that a little bit I mean, what we can see today is at least on paper a 14 to 17 uplift again.

Speaker 1: On paper, a 14 to 17 cent uplift again is kind of how we're thinking about almost a double the margin again. Now that's

Kind of how we're how we're thinking about almost double the margin again now.

Speaker 1: At the starting point, and we want to get involved in these rations, but the demand that we're seeing, at least nearby, is coming from outside of the United States, in terms of aquaculture for 60 pro.

That's a starting point and we want to get involved in these rations, but the demand that we're seeing at least nearby is coming from outside of the United States.

In terms of agriculture for 60 pro.

Speaker 1: And then we're working on significant demand within the United States next year in 2024.

And then we're working on significant demand within the United States next year in 2024.

Speaker 1: for aquaculture and pet and other areas and really in the early stages of swine. So we are just starting to, we have been working significantly hard on the program over the last six to 12 months and getting...

For agriculture, and pet and other areas and really in the early stages of swine. So.

We are just starting to where we had been working significantly hard on the program over the last six to 12 months and getting.

Speaker 1: getting into different rations and getting through a lot of the evaluation stages and we're at the end of those with very, very good high marks. But again, the spread mirrored between some of the higher protein products and soybean meal just because of the front end and soybean meal curves. So, but overall, if we had to look at it on paper, we kind of look at

Getting into different rations and getting through a lot of the evaluation stages and we're at the end of those with very very good high marks but again this spring.

Narrowed between some of the higher protein products and soybean meal, just because of the front end soybean meal curve. So but overall, if we had to look at it on paper, we kind of look at.

Speaker 1: The base margin in 50 pro, so we'll be kind of 15 and 18 cents a gallon today. The base margin in 60 pro, starting at kind of 30 to 40 cents a gallon uplift today. And really just some of it depends on market, some of it depends on what, what, where we're gonna go in the world. Some of it depends on freight, but overall we say significant uplift to that. And,

The base margin.

In 50, pros and where we've kind of 15% and 18 cents a gallon today the base margin in 60 pro starting at kind of 30 to 40, a gallon uplift today and it really just some of it depends on markets. Some of it depends on what where we're going to go in the world. Some of it depends on freight, but overall, we see a significant uplift.

To that end.

Speaker 1: and overall great acceptance of the product. You know, what's really unique and differentiates Green Planes from anybody else.

Overall, great acceptance of the product whats really unique and differentiated green plains from anybody else.

Speaker 1: is with our new plant, JB, coming on in early 24. Our redundancy is a key in critical component, and our volume is a key in critical component that we can now sell you 50,000 tons, 100,000 tons, 150,000 tons. It really, there's not a limit there relative to an inclusion rate.

As with there are new plant JV coming on in early 'twenty, four or redundancy is a key and critical component in our volume is a key and critical component that we can now sell you 50000 tons of 100000 tons to 150000 tons. It really there's no there's not a limit there relative to an inclusion rate and.

Speaker 1: And that's a game changer when you talk to a customer instead of having to sell them 4 or 5 thousand tons. So we're done and see really matters and it'll matter even more in 60 pro markets.

And that's a game changer, when you talk to a customer instead of having to sell them for a 5000 tons. So redundancy really matters and it will matter even more than 60 pro markets.

Speaker 5: All right, that's all. It's all how to put color. I'll pass it on.

Alright, that's all that's all helpful color I'll pass it on thanks, Thank you very much.

Speaker 3: Next question from Kristen Owl from Openheimer. Please go ahead.

Next question from Christopher Glynn from Oppenheimer. Please go ahead.

Speaker 6: Hi, good morning. Thank you for taking the question. Just dovetailing on that last response, Todd, you mentioned in the prepared remarks that you're planning to move a single facility or about 20% dedicated capacity to 60 Pro. So can you just talk us through what you're hearing in the market that's giving you the confidence that you can allocate that capacity to that higher level?

Hi, good morning, Thanks for taking the question.

Dovetailing on that last response, Todd you mentioned in the prepared remarks that Youre planning to move at a single facility are about 20% dedicated capacity to 60 pro. So can you just talk us through what Youre hearing in the market. That's giving you the confidence that you can allocate that capacity to that that higher level pricing.

Speaker 1: What we're hearing is really preparing for shipments, hopefully in September to satisfy Q4 demand that we're working on today in late stage of negotiation.

But we are hearing is really preparing for shipments hopefully in September to satisfy Q4 demand that we're working on today in late stage negotiations.

Speaker 1: So we can't just turn it on overnight. It takes about a week or two just to start to get the plant fully switched over from 50 to 60 pro. We've got to make sure that we work with our biology partners to make sure we have the adequate inputs that we need in fermentation. That just takes time. So a little bit of you have to anticipate what stages you are in discussions. And when we look at the size.

So we can't just turn it on overnight. It takes a it takes about a week or two just to start to get the plant fully switched over from $50 to 60 Pro we got to make sure that we work with our biology partners to make sure we have the adequate.

Inputs that we need and fermentation that just takes time, so a little bit as you have to anticipate what stages you are in discussions and when we look at the size.

Speaker 1: of the discussions we have to convert one of our plans fully to 60 pro is going to be the best outcome so we can satisfy it. It's a bit of a chicken the egg.

The discussions we have to convert one.

One of our plants fully to 60 pro.

It's going to be the best outcome. So we can satisfy its been a chicken and egg.

Speaker 1: When they want it, you better have it. I think we learned that in our 50 Pro is that we built inventories on 50 Pro and it took a little time to work through those inventories. But because we had those inventories, we were able to really start to get traction in the 50 Pro market. We're going to have to do the same thing in 60 Pro. Start to build inventories later this quarter so that we can satisfy what we believe is demand. And we're not just seeing demand from a standpoint of ship me a truck or ship me a toad.

When they want it you better have it and I think we learned that in our 50 pro is that we built inventories on 50 pro and.

And it took a little time to work through those inventories, but because we had those inventories we were able to really start to get traction in the 50 pro market, we're going to have to do the same thing in 60 pro start to build inventories later this quarter. So that we can satisfy what we believe is demand and we're not just seeing demand from a standpoint of ship me a trucker ship me a tote.

Speaker 1: You know, or or even a container, we're actually starting to see enough volume that we're potentially starting to ship pieces of vessels as well around the world. So there's enough. It gives us enough confidence that it's time to make a switch to one of our plans and have the product available in the market.

Or even a container we're actually starting to see enough volume that were potentially starting to ship.

Pieces of vessels as well around the world. So.

Theres enough, where it gives us enough confidence at a time to make a switch to one of our plants and have the product available in the market.

Speaker 6: And just a clarifying question on that, we're talking multiple customers in multiple end markets or just a little bit more color that you can provide on the customer side.

And just a clarifying question on that we're talking multiple customers in multiple end markets or just a little bit more color that you can provide on the customer standpoint.

Speaker 1: Multiple customers, multiple end markets, multiple geographies, some as big as vessel holds, not vessel, quann, and that a full vessel.

Multiple customers multiple end markets multiple geographies some as big as vessel holds not vessel quantum not a full vessel.

Speaker 1: and even down to one truck at a time and we just want to be prepared to ship and be ready to go. We've been in significant trials, evaluation.

And even down to one truck at a time and we just want to be prepared to.

To ship and be ready to go we've we've been we've been in significant trials evaluations.

Speaker 1: You can go on and on tasks labeling all the things that are really important to To our customers we've been working on that for well over a year as we had been indicating to everybody You know it takes it's it's a long process to get here We thought it would take us you know three to five years and it's as we set it for three to five months to make it Now we had now it takes about another year to kind of get through all of the evaluations because once we made it It's been in the supply chain

You can go on and on test labeling all the things that are really important to two.

To our customers, we've been working on that for well over a year as we had been indicating to everybody.

It's it's a long process to get here, we thought it would take US three years to five years and it's as we said it took a three to five months to make it now we had now it takes about another year to kind of get through all of the evaluations because once we made it it's been in the supply chain, it's been in evaluation and.

Speaker 1: It's been in evaluation and so far we haven't really seen any market that has come back to us to say, hey, that didn't work for us. And so...

So far we haven't really seen any market that has come back to us to say hey that didn't work for us.

And so are.

Speaker 1: our opportunity and what we can propose to customers around everything from performance taste as well as carbon intensity is extremely beneficial.

Our opportunity and what we can propose to customers around everything from performance taste as well as carbon intensity is extremely beneficial.

Okay.

Speaker 6: That all sounds very positive. One follow-up question unrelated. Just given some of the discussion around re-rating of the asset footprint and replacement cost. Any indication that you can give us on the transaction value for Atkinson, what we should anticipate in terms of cash on the balance sheet from that.

That all sounds very positive one one follow up question unrelated just given some of the discussion around re rating of the asset footprint and replacement cost.

Any indication you can give us on the transaction value for Atkinson, what we should anticipate in terms of cash on the balance sheet from that that werent confidentiality with with both sides of this transaction and it's it was a smaller.

Speaker 1: We're in confidentiality with both sides of this transaction and it's it was a smaller

Speaker 1: Site and from that and it didn't have rail. I mean, there's a lot of things on this site that didn't match what we wanted. So

Site and from that and it didn't have rail I mean, there's a lot of things on this site that didn't match, what we wanted so.

Speaker 1: relatively speaking where it's not really a material transaction but it's definitely enough cash for our balance sheet that makes a difference as well. So...

Relatively speaking, where it's not really a material transaction, but it's definitely enough cash for our balance sheet that makes a difference as well so.

Speaker 1: But we're a really great financial strength without this as well. I mean, that's just one more step.

But we're in really great financial strength without this as well.

Thats, just one more step as I indicated.

Speaker 1: Our pre-cashable generation, at least based on current markets, should pretty much cover a lot of our capex in terms of our growth initiatives, which really leads us in a very similar financial position at the end of the year going to 2024 with potentially Madison or Fairmont getting their permit later this year. So especially Madison Fairmont will take a little bit longer than that. So we just want to make sure we work position

Our free cash flow generation at least based on current markets should pretty much cover a lot of our capex in terms of our growth initiatives, which really this leaves us in a very similar financial position at the end of the year going into 2024 with <unk>.

Potentially.

Madison or Fairmont getting their permanent later this year, so, especially Madison.

Fairmont will take a little bit longer than that so we just want to make sure we were positioned.

Speaker 1: from the standpoint of being able to execute on where we can really make the money and be accretive, and that's why we executed on this transaction. But we would not have put any of our technology at this site, so it really didn't match our long-term needs.

From the standpoint of being able to execute on our where we can really make the money and be accretive and that's why we executed on this transaction, but we would not have put any of our technology at this site.

So it really didn't match our long term needs.

Speaker 3: Next question from Manav Gupta, UBS. Please Manav, go ahead.

Next question from Manav Gupta UBS. Please go ahead.

Speaker 7: Hi, I put it on understand a little bit better. We are seeing rebound in con oil prices, but we're also seeing rebound in animal talos, so you'll be no oil. So it appears all pretty much all RD feed stocks are on an uptrend. Help us understand what's driving it. Is it a function of?

Hi, I just wanted to understand a little bit better we are seeing a rebound in continental prices, but youre also seeing rebound in <unk> and benign. So it appears on pretty much all Ivy feedstocks.

An uptrend.

US understand what's driving it is it a function of the plants running a lot more reliably now ramp doesn't competitor something that the supply side also Argentina, just not being able to supply necessarily benign. So don't hold my opinions. Thank you. If you could just talk about the dynamics of the oddity feedstock market.

Speaker 7: the plants running a lot more reliably now ramp or does it have something with the supplies? I'd also, Argentina just not being able to supply enough so we know also the whole market is tight. If you could just talk about the dynamics of the RD feedstock market. Yeah.

Yes, it's interesting when the market was in the.

<unk> and <unk>, we were selling we're still selling our oil at kind of 5% to 12 over that market. So that was the.

Speaker 1: 40s and 50s, we were selling, we were still selling our oil at kind of five to 12 over that market, so that was just the

The market for corn oil distiller renewable clients, we call renewable corn oil.

Speaker 1: market for corn oil to still a renewable, we call it renewable corn oil. Now that the soybean milk market has rallied on the front end a little bit, those sales obviously from the standpoint of doing base of sales are beneficial to us, but beyond that, we are still selling it a premium to that. I mean, I think there's just multiple factors. I think there's not, I don't know that the supply is the issue. I think demand is just becoming so robust.

Now that the soybean meal market has rallied on the front end a little bit the sales obviously from the standpoint of doing basis sales are beneficial to us but beyond that we are still selling at a premium to that I mean, I think there's just multiple factors I think theres not I don't know that the supply is the issue I think demand is just becoming so robust.

Speaker 1: that we're starting to see really good uptakes of oils into renewable diesel, more importantly though.

That we're starting to see really good uptake of oils into renewable diesel more importantly, though.

Speaker 1: When you kind of look at some recovery in LCFS, when you look at the value of CI point,

When you kind of look at some recovery in <unk>. When you look at the value of Ci points.

Speaker 1: for what we produce and even talos when you look at the low-CI feedstock.

For what we produce and even <unk> when you look at the low Ci feedstocks.

Speaker 1: We have not really seen anywhere where that was betrayed anywhere at this counter so I mean oil anymore and in fact as we move towards 2025 which is just not that far away.

We have not really seen anywhere where there was a trade anywhere the discount to soybean oil anymore and in fact, as we move towards 2025, which is just not that far away.

Speaker 1: We have a benefit to the end users because of the IRA to use more corn oil. So we're really in a really good position. What we didn't mention to Minab as well is that Fluquip continues to see in their technology expanded yields before we even get to SSCT technology. So

We are we have a benefit to the.

The end users because of the IRA to use more corn oil. So we're really in a really good position.

What we didn't mention manav as well is that fluid quip continues to see and their technology.

Expanding yields before we even get to use <unk> technology. So.

Speaker 1: You know, we are implementing one of their technologies, new technologies in Wood River over the next several months, which we believe has the capability to increase our yields at an MSC facility to kind of 1.31.4. And they've already seen those results at an earlier application at a non-green planes plant that they had a different system running already. They upgraded it, now we're going to take those findings.

We are implementing one of their technologies new technologies in Wood River over the next several months, which we believe has the capability to increase our yields.

At an MSC facility to kind of 1314 and they've already.

<unk> seen those results at an earlier application at a non green plains plant that they had a different system running already they upgraded its now we're going to take those findings and.

Speaker 1: and apply it. So we're very confident in our ability to produce oil, but I think it's really just demand that's finally showing up.

And apply it so we're very confident in our ability to produce oil, but I think it's really just demand is finally showing up.

Speaker 1: And I think supply has not really grown quite frankly. I mean, we're not making anymore oils in industry. We're not making it soybean oil. There's not a bunch of new plants that started up in soy crushing that's coming, but so the supply hasn't really expanded while demand is finally kind of exceeding it again.

<unk>.

And I think supply has not really grown quite frankly, I mean, we're not making any more oil as an industry, we're not making it soybean oil theres not a bunch of new plants that started up in soy crushing is coming but.

The supply Hasnt really expanded while demand is finally kind of exceeding it again.

Speaker 7: Okay, and a quick follow up here is the wood river outage kind of hit you multiple ways that hit your ethanol production, corn oil, also your ultra high pro help us a little bit better during the OSHA investigation or otherwise, what are some of the lessons learned here? And what can be done to make sure something like this does not happen again? Thank you.

Okay.

Follow up here.

The wood room, let al gauge kind of hit to multiple needs and TTM ethanol production online.

Entre <unk> help us understand EBIT better during don't shine mitigation or otherwise what are some of the lessons noncash and what can be done to make sure something like this does not happen again.

Speaker 1: Well, we don't ever want it to happen. You know, I think it was an unfortunate event. It was during the shutdown. You know, we can't really get into a lot of the details. OSHA has released the plant back to us.

Well, we don't want to ever wanted to happen I think it was an unfortunate event it was during the shutdown.

We can't really get into a lot of the divi details Osha has released the plant released the plant back to us.

Speaker 1: And we were already preparing during the end of that to bring that plant up as fast as we could. Took a little while to get protein and oil running. We just want to make sure the team was good and stable. But look, these are incidents that we never want to happen. So I mean, we learned from every incident like this, it's unfortunate. It is hard on the team. It's hard on the company overall. It's not just the Wood River facility. You know, we are certainly...

And we are already preparing.

During the end of that to bring that plant up as fast as we could took a little while to get protein and oil running we just want to make sure. The team was good and stable but.

Look these are incidents that we never want to happen. So I mean, we learn from every incident like this it is unfortunate.

It is hard on the team it's hard on the company overall, it's not just that wood River facility.

We are certainly.

Speaker 1: Cognitive of what it can do to our employees and I think it just had multiple effects across the company, but

Cognizant of what it can do to our employees and I think it just had multiple effects across the company but.

Speaker 1: You know, there is, as we move on, we'll just take our learnings, but I think overall, we are running that plan full out again. And the team is in good shape. And OSHA has...

There is.

As we move on we'll just take our learnings, but I think overall.

We are running that plant full out again and the team is in good shape and Osha has.

Speaker 1: has released a plant back to us. So we'll move on and learn from that.

Is it released the plant back to us. So we just we will move on and learn from that.

Speaker 3: Next question comes from Fulvator, Tiano, Bank of America. Fulvator please go ahead.

Next question comes from Sanjay <unk> from Bank of America. Please go ahead.

Yes.

Speaker 8: Yes, thank you very much. I actually want to get a little bit more color on the rest of the outfit. So firstly, if I understood correctly, given that 15 to 20% impact that you set on consolidated margin.

Yes, thank you very much.

I assume once you get a little bit more color on the rest of the outages. So firstly, if I understood correctly, given the 15 to 20 <unk>.

On consolidated margins it seems to me that it's probably another.

Speaker 8: It seems to us that it's probably another 10 to 20 million impact that you saw in other facilities besides Wood River. And does this make sense? And also, what type of outages were they? Did you uncover essentially things during planned turnaround that needed to be repaired? Or were they simply things broke down?

10% to 20 medium impact that you saw in the other facilities. Besides wood River and does this makes sense and also what type of outages where did they did you have cabo essentially seeing is during planned turnarounds that needed to be repaired or would be or simply things broke down.

No.

Throughout the quarter.

Speaker 1: Yeah, I think it was a little bit of everything you're talking about. And on top of that, you know, you have the domino effect of having good hedges on in an expanding market, having good sales on of high protein in a decreasing market, which then, you know, you lose those and you have to.

Yes, I think it was a little bit of everything you are talking about and on top of that.

The Domino effect of having good hedges on in an expanding market having good sales on <unk>.

High protein and a decreasing market, which then you lose those and you have to.

Speaker 1: You have to exit some of those opportunities. And so it was, yes, it was a combination of the fact that we were in shutdowns that took significantly longer to bring back up as we found more areas that we needed to repair. And then overall, we had some significant.

So you have to exit some of those opportunities and so it was yes. It was it was a combination of the fact that we were in shutdowns that took significantly longer to bring back up as we found more areas that we needed to to repair and in overall.

Had some significant.

Speaker 1: unplanned downtimes of things that just happened during the quarter. It was a bit of a perfect storm. We weren't expecting it, you know, but what we were able to do then is during those, you know, our operations team again.

Unplanned downtime of things that just happened during the quarter was a bit of a perfect storm.

We werent expecting it.

But but but what we were able to do then is during those our operations team again.

Speaker 1: We brought in a new head of operations. He's built a team around him. They got their head around it. We are highly skilled and highly competent across that team who brought in people across industries from refining all the way into wet milling, all the way into dry milling. And built a really new team as we had turned that team over. And they had kind of hit it hard. And

So we've brought in a new head of operations. He has built a team around him they've got their head around it we are highly skilled and highly competent of cross that team. We brought in people across industries from from refining all the way into wet milling all the way into dry milling and built a really new team as we as we had turned that team over.

<unk> and <unk>.

They had kind of hit it hard and and.

Speaker 1: and set us up so that during that time, at least we were able to quickly mobilize, take advantage.

And set us up so that during that time at least we were able to quickly mobilize take advantage.

Speaker 1: and get through some of the things we would have done in the last half of our normal shutdown.

And get through some of the things we would have done in the last half of our normal shutdowns.

Speaker 1: fall shutdowns and we can not have to we're not going to have to do some of those now which is going to be helpful So it was just a bit of a perfect storm that hit us Unfortunately, we we had ourselves set up for a pretty good quarter and then between Wood River the the spiral effect of locking things in and then and then having unplanned down times just

Fall shutdowns and we cannot we're not going to have to do some of those now which is going to be helpful. So it was just a bit of a perfect storm that hit us. Unfortunately, we.

We had ourselves set up for a pretty good quarter and then between Wood River.

The spiral effect of marking things in and then and then having unplanned downtime.

Yeah.

Speaker 1: Just hit it hard and we'll move on from that and just run, run, fall out. It's as that's we can during the last half and show everybody what this is capable of because we could have shown it in the second quarter and just It just it just was not able to execute because of those couple of reasons

Just hit Us hard and we'll move on from that and just run run full out as best we can during the last half an inch.

So everybody what this is capable of it because we could have shown it in the second quarter and just.

It just was not able to execute because of those couple of reasons.

Speaker 8: Perfect. And as a follow up, you know, you mentioned you were in the final stage of negotiations for the 60 pro volumes and two four. I personally at least was under the impression things were more firm in terms of sales there. So is there any risk that negotiations may not be outcome that you like and you may actually not sell. Volume 60 pro volumes here and it's been a while since you announced obviously the fish market, the silver. So, so. in so

Perfect and as a follow up.

You mentioned you are in the final stages of negotiations for the 60 pro volumes before I personally at least was under the impression teams were more firm in terms of sales or so is there any risk.

Negotiations may not youll be outcome, but youll like may actually not settled.

60 pro volumes here.

It's been a while since we announced obviously.

<unk> partnership with Bluebird, and so karthik progressively better as well.

Speaker 1: Yeah. So I don't think we gave anybody a certainty of sale, but what we did say is we're negotiating in the fourth quarter. We feel like now we're in such a late stages that we're even negotiating destinations, price, all those type of things. So we know we'll make it into some rations.

Yes.

So I don't think we gave anybody a certainty of sale, but what we did say is where we're negotiating in the fourth quarter. We feel like now we're in such late stages that we're even negotiating destinations price all those type of things. So we know we'll make it into some rations.

Speaker 1: into the fourth quarter, and that's why we're now starting to ramp up. It'll take us a good 30 days to get in the full production rate, even though we can start to hit it within a few days, but just to get consistent and make sure that the plant's lined out and running well.

Into the fourth quarter and Thats why we are now starting to ramp up it takes it will.

Take us a good 30 days to get into full production rate, even though we can start to hit it within a few days, but just to get consistent and make sure that the plants lined out running well, but that's why our confidence has gone up relative to starting up one of our 60 per our plants, even earlier than probably we thought where.

Speaker 1: But that's why our confidence has gone up relative to starting up one of our 60 pro plants even earlier than probably we thought we were going to do. Our river and partnership remains.

We're going to do our river. Its partnership remains strong we are already in one of their ration through one of their third party suppliers, we know that for a fact.

Speaker 1: We are already in one of their rations through one of their third party suppliers. We know that for a fact.

Speaker 1: working on getting into another ration of theirs. We know that our product is very valuable. Our partnership is remained strong. We're looking at kind of their volume going forward and what we can do together and where we should really place our asset. It's a long game when you think about the feeding cycles for what they do and what other salmon producers do around the world. This is a two year cycle almost. Problem, the time you start, till the time you harvest a...

Looking on getting into another ration of theirs, we know that our product is very valuable. Our partnership is remains strong we're looking at kind of their volume going forward and what we can do together and where we should really place our asset.

It's a long game when you think about the feeding cycles for what they do and whether other salmon producers do around the world. This is a two year cycle almost from the time you start till the time you harvest.

Yes.

Speaker 1: A N-N product. And so we have plenty of time, but the partnership remains strong. The asset base is starting to be thought of. You know, there's an asset in the middle of that already. And we hopefully will start to see the benefit, the full benefit of that.

And end product and so we have plenty of time, but the partnership remains strong the asset base is starting to be thought of there is an asset in the middle of that already and.

We hopefully will start to see the benefit the full benefit of that.

Speaker 1: partnership over the next year or two. But it's a long game when you think about the feeding cycle of these companies and the growth cycle of these companies. Not many better than Riverance in the world. I can only assure you that our partnership is strong in place and looking for where we're going to continue to expand it.

Partnership over the next kind of year or two but it's a long game. When you think about the feeding cycle of these companies in the growth cycle of these companies in.

Not many better than river in the World and I can only I can only assure you that our partnership is.

Strong in place and looking for where we're going to continue to expand it.

Thank you very much.

Speaker 3: Next question comes from Lawrence Alexander Jeffries. Please go ahead. Hi, this is Dan Resow on for Lawrence. I just a quick question. Are there any lingering costs associated with the combination with GPP that's going to occur a little in the next couple months?

Next question comes from Laurence Alexander Jefferies. Please go ahead.

Hi, This is Dan Rizzo on for Laurence just a quick question are there any lingering cost associated with the combination with GPP that's going to occur later in the next couple of months.

Speaker 1: Yeah, I would say there's, you know, depending on where we get to in the transaction, there's still absolute merger costs that could happen. There's, you know, we need to shareholder votes. We need there's lawyers. There's several things in terms of filing. So, yeah, I would say there's deal fees. All those type of things have to happen. And, uh, but overall, you know, we could break those out. And there are all one-timers, but I think the overall benefit of bringing them in would greatly exceed that if we can, if we can get this deal done.

Yes, I would say there is.

Pending on where we get to the transaction, there's still there's still absolute merger costs that could happen there as we need shareholder votes, we need there's lawyers theirs.

Several things in terms of filings. So, yes, I would say theres deal fees all of those type of things have to happen and.

But overall, we could break those out and they're all one timers, but I think the overall benefit of bringing them in would be greatly exceed that if we can if we can get this deal done.

Speaker 9: And I'm sorry if I forgot this, but have you quantified what the what the synergies are with doing this the cost of the cost savings are? Yeah, I mean what we said is number one.

And I'm, sorry, if I forgot this but have you quantified what the synergies are with doing.

Doing this the cost of the cost savings are.

Yes, I mean, what we said is number one.

Speaker 1: by bringing the partnership back in. Obviously.

By bringing the partnership back in obviously.

Speaker 1: We don't spend some of our money out the door in terms of fees. We get that back in, but we're paying for that, some savings in SG&A.

We don't send some of our money out the door in terms of fees, we get that back in but we're paying for that.

Some savings in SG&A and.

Speaker 1: You know, so overall interest savings is well potentially as we will look to do it, see what we do at that piece of that. So, but we're still negotiating with Catholic Committee and we should have more on that during the quarter.

So overall interest savings as well potentially as we will look to do see what we do with that piece of debt. So, but we're still negotiating with conflicts committee and we should have more on that during.

During the quarter.

Alright, Thank you very much.

Okay.

Speaker 3: Next question comes from Jordan Levi, Trist Securities. Please go ahead.

Next question comes from Jordan Levi Twist Securities. Please go ahead.

Speaker 10: Hey all, I appreciate all the commentary and the improved outlook you talked to in the back half of the year. Maybe if we could just unpack that a little bit more and help frame up how...

Hey, Al <unk>.

Appreciate all the commentary.

The improved outlook you talked to in the back half of the year, maybe if we could just unpack that a little bit more and help frame up how we should be thinking about what run rate EBITDA might look like given the levels youre running at protein right now and what Youre seeing in crush in Dcs.

Speaker 10: about what run ready, but that might look like, given the levels you're running at on protein right now and what you're seeing in CRUSH and DCO.

Yes, I mean, I think when you kind of look at it.

Speaker 1: On paper, similar or better to the margins we locked in during Q2 overall. And depending on where we see ethanol perform, we've got to watch the corn market closely.

On paper similar or better to the margins we locked in during Q2 overall.

And depending on where we see ethanol perform we've got to watch core market closely.

Speaker 1: bombing a Black Sea port from the Ukraine to Russia, you know, doesn't help our crush, but overall the crush expanded and numbers came back in line. Run rates were overly stated in our opinion last week at 1090. It's probably not possible. Just doesn't state it very long.

Bombing, a black sea port from Ukraine to Russia doesn't help our crush but overall the crush expanded the numbers came back in line run rates were over overly stated in our opinion last week at $10 90. It is probably not possible just doesn't stay there very long.

Speaker 1: And I think we'll get some better EIA data going forward. I think we're below last year's stocks levels. Blending continues to increase. RIN values have not broken since the updated RVOs at all. So if you look at retailers, they're making plenty of money blending ethanol. We're seeing more and more.

And I think we will get some better EIA data going forward I think were below last year's stocks levels.

Blending continues to increase RIN values have not broken since the updated RV OS at all so if you look at kind of retailers are making plenty of money blending ethanol.

Seeing more and more.

Speaker 1: E15 type 88 octane sales happen to the consumer. We've been using Optic and E85 sales, which we didn't know how much traction that will continue to maintain over the years. But when you look at corn oil alone,

<unk> type.

Eight octane sales happen to the consumer we've been we've seen uptick in 85 sales, which we didn't we didn't know how quick how much traction that will continue to maintain over the years, but when you look at corn oil alone.

Speaker 1: you know, relative to the first half, just take prices where they're at today. I mean, that alone is...

Relative to the first half just take prices.

Where they're at today, I mean that alone as.

Speaker 1: is in that $75 to $80 million range, just contribution where the first half was more of a, because of prices and the volatility is more of that $50 to $60 million range in the first half. So that alone gets us back. We got the question one.

Is in that $75 million to $80 million range, just contribution where the first half was more of a.

Because of the prices and the volatility is more of that $50 million to $60 million range in the first half so that alone gets us back we got the question once.

Speaker 1: How did you come up with 70 cents, a 60 or 70 cents a pound in your long-term view of oil? And I think it's taking shape nicely. And so protein as well, we've got to deliver on somebody's 60-prote sales, but overall, we should start to really see a nice protein uplift. And we are looking forward to the day, which is going to come soon. We're able to really break out last-up protein numbers for you, but I can tell you that it's on pace with what we had previously indicated. On top of that.

How did you come up with $76 or 70 cents a pound in your long term view of of.

Of oil and I think it's taking shape nicely and so protein as well we've got to deliver on some of these 60 pro sales, but overall, we should start to really see a nice protein uplift.

We are looking forward to the day, which is going to come soon where we're able to really breakout laptop protein numbers for you, but I can tell you that it's on pace with what we had previously indicated.

On top of that.

Speaker 1: you know flu equipped will start to gain some traction on some of the sales that they start to make. Remember when we make a sale in flu equipped it actually increases EBITDA at green planes. There is a margin on technology and they're working on incredible technology opportunities well outside of protein and what they do and so they have a much bigger engineering and construction and technology business as well. So we're looking forward to their contributions and we'll just have to wait and see where ethanol comes in.

Fluid quip will start to gain some traction on some of the sales that they start to make member when we make a sale in fluke or if it actually increases EBITDA at Green Plains or is a margin on technology and they are working on an incredible technology opportunities.

Well outside of protein and what they do and so they have a much bigger engineering and construction and technology business as well. So we're looking forward to their contributions and we'll just have to wait and see where ethanol comes in.

Speaker 1: And even the last half on Ag and Energy is usually stronger than the first half, because third and fourth quarters is really where we start to kick in on that as well. So overall, when you kind of look at it, on paper it's greater than what we were logging in in the second quarter, and we'll have to see where it goes from there, and fundamentals are good in everything we're doing. You just need to figure out how long it takes to get through the process. It requires a couple of days to have a ballot to vote on theUDip Mar corrupted through ID card. It takes only a few of those to do it andscience goes way too high. Ten days to do the manual read.

And even that last half on AG and energy is usually stronger than the first half than we.

Because third and fourth quarters is really we start to kick in on that as well so.

Overall, when you kind of look at it.

On paper, it's greater than what we were flagging in in the second quarter, and we'll have to see where it goes from there and fundamentals are good and everything we're doing.

Speaker 10: promising. Thanks Todd. Maybe just shifting gears over to the regulatory front, looks like the administration's working through how to think about

Thanks Todd.

Maybe just shifting gears over to the regulatory front it looks like the administrations working through how to think about.

The feedstock for us.

Curious.

Speaker 10: thoughts are there in how they may look to approach that.

What your thoughts are there.

Yes.

What implications that might have.

Speaker 1: So I have Devon here with us who you guys met on our IRA teaching, except to say, and I'll just lead in now, let Devon give you a little more color.

So I have Devin here with US who you guys met on our IR, a teacher and except to say and I'll just lead it and I'll, let Debbie give you a little more color.

Speaker 1: You know, we're very focused on making sure that the regulations are in place that give ethanol as good of a shot as anything else, and alcohol. You know, the first step is to decarbonize.

We're very focused on making sure that the regulations are in place that give ethanol as good of a shot as anything else in the alcohol first step is to decarbonize.

Speaker 1: which is why we're very happy with the choices we've made around our decarbonization strategy and being up what we believe will be earlier than a large part of the industry because of the choices we made. But overall, it looks like we're getting good bipartisan support.

Which is why we're very happy with the choices, we've made around our de carbonization strategy and being up or what we believe will be earlier than a large part of the industry because of the choices we made.

But overall it looks like we're getting good bipartisan support.

Speaker 1: for making sure that the modeling is thought of correctly and I'll let Devon comment on that a little bit.

For making sure that the modeling is thought of correctly and I'll, let I'll, let debbie comment on that a little bit.

Speaker 11: So, like we said on the IRA teaching, we want to see the Department of Energy's argon great model used that allows for decarbonized ethanol to serve as primary feedstock for alcohol to jet staff.

So like we said on the <unk>, we want to see the department of Energy's Argonne greet model used that allows for decarbonize ethanol to serve as a primary feedstock for alcohol to jet SaaS. We saw some encouraging comments from the president just last week in Maine, where he said that farmers have a vital role to play in producing SaaS. So that was encouraging.

Speaker 11: We saw some encouraging comments from the president just last week in Maine, where he said that farmers have a vital role to play in producing staff. So that was encouraging. We expect to see regulations put out by Treasury as early as next month, September , on the current 4DB.

We expect to see regulations put out by Treasury as early as next month September on the current 40 be SaaS tax credit and then shortly thereafter for 45.

Speaker 11: Staff tax credit and then shortly thereafter for 45G.

Speaker 11: And there's a lot of discussion, but as Todd mentioned, tremendous amount of bipartisan support from both the House and the Senate to continue to encourage the administration to allow for decarbonized ethanol to serve as a feedstock and help to meet the SACRAN challenge goal of three billion gallons by 2030, which we don't believe is possible unless you use these agriculture row-based feedstocks.

And Theres a lot of discussion, but as Todd mentioned tremendous amount of bipartisan support from both the house and the Senate to continue to encourage the administration to allow for de carbonized ethanol to serve as a feedstock and helped to meet the SaaS Grand Challenge goal of 3 billion gallons by 2030, which we don't believe as possible unless you use these agriculture Roe base.

Feedstocks.

Very helpful. Thank you.

Thank you.

Speaker 3: Next question comes from Eric Stein, Greg Hallam. Please go ahead.

Next question comes from Eric Stine, Craig Hallum.

Please go ahead.

Good morning, everyone.

Speaker 12: Morning. Hey, just going back to 60 Pro. I mean, is this a matter more of, you know, just the market or your place in the market developing? I mean, is there any reason as we think long term that your entire platform is in 60 Pro? And just to confirm, I believe you said, fit in the near term you're hoping 20 to 30% would be 60 Pro. So why would we build?

Good morning, Good morning, Hey, just just going back to 60 pro.

Is this a matter more of.

Yes.

The market or your place in the market developing I mean is there any reason as we think long term that your entire platform isn't 60 pro and just to confirm I believe you said FID in the near term Youre, hoping 20% to 30% would be 60 pro.

It's why we built America I mean, we didn't build.

Speaker 1: Our systems to run 50 Pro we built them because we knew with our partnership with Fluquip and our investment there that we've made Any amazing technology they have and the consistency of their product and the way it flows and the way it looks in the color of it It's very different than anything else available on the market the way we dry it the way we process it It's just consistent. We have no problem consistently making 50 52 anything we want to make on demand and and gaining

Our systems to run 50 pro we built them because we knew with our partnership with fluid quip and our investment there that we've made and the amazing technology. They have in the consistency of their product and the way it flows in the way it looks in the color of it it's very different than anything else available in the market the way we dry it the way we process it.

It's just consistent we have no problem consistently making $50 52 anything we want to make on demand.

And gaining large our yield increases which is why we did it as well, but we bought flu equipped and we invested in flow equipped with our partners.

Speaker 1: our yield increases, which is why we did it as well. But we bought FluoChip and we invested in FluoChip with our partners.

Speaker 1: to make 60% protein and more and greater. And so our whole platform and our whole marketing efforts over getting into 24 and 25 have been to maximize our market penetration.

To make 60% protein and more and greater and so our whole platform and our whole <unk>.

Marketing efforts over getting into 'twenty four 'twenty five have been to maximize our market penetration.

Speaker 1: in 60% protein. And that's where we believe we're heading. When we look at a new plant and where we want to build the next one, we basically have to say, if we push a yield and we push protein, we also know that what is our fiber product and it look like as well? Because we are creating new products. We are creating yeast products, we're creating fiber products, and we make 60 pro with a very different outcome. But yes.

60% protein and.

And Thats, where we believe we're heading when we look at a new plant and where we want to build the next one.

We basically have to say, if we push yield and we pushed protein. We also know that what is our fiber product and it looked like as well because we are creating new products. We are creating niche products, we're creating fiber products. When we make 60 <unk>, it's a very different outcome, but yes.

Speaker 1: Our intent and our plan is to go as far, as fast, and as quickly as we can in the highest amount of volumes to move to a 60 pro market and we are focused on doing that. It will take a while.

Our intent and our plan is to go as far as fast and as quickly as we can and the highest amount of volumes to move to 60 pro market and we are focused on doing that it will take a while.

Speaker 1: because it has to be a global outcome. And so now we're working with partners globally as well for distribution and talking with potential partners.

Because it's it has to be a global outcome and so now we're working with partners globally as well for distribution and talking with potential partners.

Speaker 1: and distribution as well because you're going to have to, this is a global product and we think that's where the best places to really get max penetration against products, everything from corn good meal to soy protein constraints, all the way to what we're doing on our biological opportunities in terms of taste and texture and profiles to even start to think about.

And distribution as well because youre going to have to.

This is a global product and and we think Thats, where the best places to really get Max penetration.

Against products everything from corn gluten meal to soy protein concentrates all the way to what we're doing on our biological opportunities.

In terms of taste and texture and profiles to even start to think about.

Speaker 1: things like fish meal replacement as well. And that's really worth, that's the ultimate Pandora's box that we continue to try to solve for every day.

Things like fish meal replacement as well and that's really where that's the ultimate Pandora's box that we continue to try to solve for everyday.

Speaker 12: got you and then uh... i mean i guess not to totally try to pin you down but i mean in terms of timing you said it'll take a while mean is that is that you know two three years out or is that you know it's gonna take five plus

Got you and then.

I mean, I guess not to totally try to pin you down, but I mean in terms of timing you said it will take a while I mean is that is that two three years out or is that it's going to take five plus years.

Speaker 1: No, it's not five years, so I can assure you, I can't assure, I mean, I can almost assure you of that. Every time I say I can assure you, it's probably not the best thing to say, but it's not five years out. I mean, our program has fully been designed and the people we brought in to help market this product and sell it all have experienced at the higher protein levels and customer base. So it's just time, it's not gonna be matter, and our view is not a matter of it. Can we could do the whole thing? We should be able to, I mean, there's,

Five years, so I can assure you I can't assure I mean, I can almost assure you of that every time I say I can assure you, it's probably not the best thing to say, but it's not five years out I mean, our program has fully been designed and the people we brought in to help market this product and sell it all have experienced at the higher protein levels and customer base. So it's just.

Time, it's not going to be matter and our views on a matter of if can we can do the whole thing we should be able to I mean, there is.

Speaker 1: 10 million tons of demand globally if not greater than that just for just for things like corn gluten meal and more for high for corn or soy protein isolates and soy protein concentrates and those type of things. And we brought a new leader to the team.

10 million tons of demand globally, if not greater that just for just for things like corn gluten meal and more for high prefer corn or soy protein isolates and soy protein concentrates and those type of things and we brought a new leader to the team.

Speaker 1: that came out of Cargill that spent his time globally in different protein and aquaculture businesses. And he's now running our protein marketing as well. And so we're attracting that type of talent to this company so that...

That came out of cargo that spend his time globally.

In different protein and agricultural businesses and.

He is now running our.

Our protein marketing as well and so we're tracking that type of talent to this company so that when they show up at the door they have great.

Speaker 1: You know, when they show up at the door, they have great customer relationships, but also a lot of credibility from where they came from to where we're going. And we've built teams around all of our products, clean sugar and protein. Cornell's a little easier. They just call and they buy it. But in those products, we wanted to make sure that we staffed those with deep, technical,

Customer relationships, but also a lot of credibility from where they came from to where they are to where we're going and we build teams around all of our products clean sugar and protein Cornell's little easier. They just call them they buy it but and those products. We wanted to make sure that we staff those with deep technical.

And marketing experience and that really didn't exist in the gen. One industry. So we're tapping that from.

Speaker 1: And that just really didn't exist in the Gen 1 industry, so we're tapping that from...

Speaker 1: all of our larger counterparts in agriculture and energy.

All of our large all of our larger counterparts in agriculture and energy.

Okay. Thank you.

Thank you.

Speaker 3: Our last question comes from Andrew Strelzig from BMO Capital Markets. Please go ahead and...

Our last question comes from Andrew Charles <unk> from BMO capital markets. Please go ahead.

Speaker 4: Hey guys, it's been on for Andrew. Just one quick one on the ultra high protein EBITDA build. Todd, I think you alluded to this earlier, but you guys seem to still be on track for 150 million run rate by the end of 2024. If you could just briefly kind of walk us through the path as

Hey, guys. This is Dan on for Andrew.

Just one quick one.

On the ultra high protein EBITDA build on Todd I think you alluded to this earlier, but.

You guys seem to still be on track for $150 million run rate by the end of 2024, if you could just briefly kind of walk us through the path.

Speaker 4: how that looks. Obviously we've heard a bunch on 60 Pro at the beginning of the year, but I'm just trying to bridge that gap into 25.

How that how that looks.

Obviously, we've heard a bunch on 60 trial at the beginning of the year, just trying to bridge that gap into 'twenty five.

Speaker 1: Yeah, so when we look at it, you know, basically when we think about it, today we have 560 million gallons converted.

Yes.

Yes, so when we look at it basically when we think about it today, we have 560 million gallons converted.

Speaker 1: and we're going to have half the Therelson JV, half the Ovarian turnkey, so that's about 85 million gallons perverted. And then when you add at least one of the two Pairmont or Madison, that's 760 million gallons converted. When you look at how much corn we grind there.

And we're going to have half that Theyre Olson JV happy of our turnkey so thats as about 85 million gallons converted.

And then.

When you add at least one of the two Fairmont or Madison at 760 million gallons converted.

When you look at how much coronary grind there.

At <unk> in terms of a yield.

Speaker 1: And then you take that times what we believe will be by the time we get there, 4.5 to 5 pounds of bushel.

And then you take that times, what we believe will be by by the time, we get there four five to five pounds per bushel.

Speaker 1: And then you're hitting higher targets volumetrically than what we had outlined. And then when we look at 2024, and as we leave 24 with 20 to 30% of our capacity in 60 Pro and go into 25, when you put all that into the calculator, we'll be very happy to do that. I can't do that right now on this call. It meets or exceeds those targets relative to 15, 18 cent of a gallon uplift on 50 Pro, 30 to 40 cent of gallon uplift.

And then youre hitting higher targets volumetric Lee.

What we had outlined and then when we look at 2024.

As we leave 24 with 20% to 30% of our capacity and 60 pronged go into 25, when you put all of that into the calculator and we'll be very happy to do that I don't I can't do that right now in this call it meets or exceeds those targets relative to <unk>.

<unk> incentives of gallon uplift on 50 pro.

30% to 47, a gallon uplift on 60 pro not including all of the other opportunities that our innovation team works on to increase value of our products. Even further in terms of that product suite and things like drive <unk> and 60, <unk> 60, <unk> those type of things.

Speaker 1: Not including all the other opportunities that our innovation team works on to increase value of our products even further, in terms of that product's sweet, and things like dry yeast, and 60 dry yeast, 60 pro yeast, those type of things.

Speaker 1: And when we've kind of put that all in, we are even more confident today with the things that we're seeing driven by yield, driven by protein, driven by price spreads, driven by innovation, that we can hit that 150 to 200 million dollar a mark that we laid out and then build from there. Awesome. Thanks.

And when we've kind of put that all in we are even more confident today with the things that we're seeing driven by yield driven by protein driven by price spreads driven by innovation that we can hit that $150 million to $200 million Mark that we laid out and then build from there.

Awesome, Thanks, Todd have a great weekend.

Hey, Thank you very much.

Speaker 3: I will now turn the call back over to Mr. Becker, CEO for closing remarks.

I will now turn the call back over to Mr. Becker CEO for closing remarks.

Speaker 1: Hey, thanks everybody for being on the call. A lot of questions, a lot of great questions. We really appreciate it. As you can see, we're making great progress across our product suite.

Yes, hey, thanks, everybody for being on the call a lot of questions a lot of great questions. We really appreciate it as you can see we're making great progress across our product suite.

Speaker 1: Challenging second quarter, we appreciate that. We've come out of it better than where we were in it. Plants are running better. Protein is running great. Sugar is on track.

<unk> second quarter, we appreciate that we've come out of it.

Other than where we were in at plants are running better protein is running great sugar is on track.

Speaker 1: Oil markets have recovered significantly from the quarter lows when we're down into the 40s now we're up into the 70s again high 60s

Oil markets have recovered significantly from the quarter lows when we're down into the <unk> now we're up into the seventies again high <unk>.

Speaker 1: So overall we think we're in a good place to show what the opportunity is in the last half and deliver a few orders and make sure you're confident that we can deliver on 24 and 25 and you know our takeaways from 23 going to 24 and our exit run rate in 24 goes into 25 and that's why we're extremely confident between decarbonization which those numbers have only gotten better to hit those 25 numbers that we laid out and begin to hit those in 24 as well. So we appreciate your support and we'll talk to you next quarter.

So overall, we think.

We're in a good place to show what the opportunity is in the last half and deliver a few quarters.

Make sure you are confident that we can deliver on $24 25 and are.

Our takeaways from 'twenty three go into 24, and our exit run rate in 'twenty four goes into 25% and that's why we are extremely confident between de carbonization, which those numbers have only gotten better to hit those 25 numbers that we laid out and began to hit those 24 as well. So we appreciate your support and we'll talk to you next quarter.

Speaker 3: Ladies and gentlemen, that concludes today's call. Thank you all for joining and you may now disconnect.

Ladies and gentlemen that concludes today's call. Thank you all for joining and you may now disconnect.

Now disconnect.

Okay.