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Welcome to The Future Is... a podcast
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where we meet the people shaping what's next
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in business and life.
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I'm your host, Laura Kelleher, Honeywell's
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Chief Marketing Officer.
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And in today's episode, we're going to break down
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the topic of emissions management.
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Something that's been a complex undertaking
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for industrial companies, but is being
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transformed by technology.
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I'm joined today by Deanna Haines,
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a senior director focused on industrial
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decarbonization at Honeywell,
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to discuss the ins and outs of emissions
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management and how innovative technologies
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can help companies wherever they are
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in their journey to sustainability.
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To start, can you walk us through why emissions
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management historically has been such a difficult
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process for industrial companies?
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What are some of their main challenges?
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What we're talking about are greenhouse gasses, which
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are the gasses that help trap
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heat and are contributing to global warming.
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In particular,
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carbon dioxide is the main
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gas that typically people talk about,
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but we're focusing on
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in our solutions are
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not only all the greenhouse gasses and helping
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manage them, but specifically
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what it is called methane, which is
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methane is a gas that's a natural gas,
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which is a fuel that most of our
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industrial customers use and methane
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is in other, occurs naturally in the environment.
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And it is something that has a strong
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global warming potential compared to
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carbon dioxide. If we can reduce it now, in the near future,
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it could really help stem the global warming that's going on.
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So we have some really good solutions
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around that, and the pain points traditionally
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around methane
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and measuring methane has been
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that it's very difficult to measure,
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especially if it's coming from a fugitive source, and it's very
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difficult to differentiate it where
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it's coming from, pinpoint where its location is, things like that.
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Also the other pain point
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with greenhouse gas emissions and it's
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just generally getting the data
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and getting it from the source
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into a system that can help you do any kind of voluntary
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mandatory disclosures in an efficient way that makes.
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So, there's good integrity with that data
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through the process, there's a lot
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of handoffs and that data is very difficult
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sometimes to get and it's very difficult
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to make sure it's quality assured and
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we help automate that, that collection of data.
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So those are the key pain points,
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helping really measure
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the gas and actually efficiently
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collecting the gas from the emitting sources.
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Once the company is able to generate data
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about its emissions, with the help of hardware
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solutions, what happens next?
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How does software play that pivotal role?
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So, the software is really
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important in terms of helping
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aggregate the emissions across
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the facility, helping do
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quality assurance around those emissions.
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One of the things that
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also it does is help differentiate
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what type of emission is it,
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is it coming from a venting
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that's happening on a pneumatic piece of equipment,
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or is it coming from a passive fugitive component,
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or is it coming from the process itself?
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We provide instead of a snapshot
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or photo of what's happening, we provide
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the movie, the entire picture.
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So you could go back in time, look at trends,
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see where things may be happening and
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understand from a root cause analysis,
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what could be causing those emissions so that
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you can prevent them from reoccurring in the future?
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That is really transformational to have that
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kind of data and
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to have that real time access to it.
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So what excites you most about emissions
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management solutions that Honeywell brings to market?
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We have a footprint throughout the globe, so that we
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could service any of our products.
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Our emissions are happening throughout the world.
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So we need to have that global reach.
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The other aspect of it is that our solutions are integrated.
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Everything is tied together, it has a common
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uniform interface,
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graphical uniform interface
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so that folks aren't having to learn
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different applications or having to have
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that learning curve around how
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to navigate through those applications
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and the data can be stored
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in one system of record in the background,
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so that you don't have to be searching
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throughout different applications for the data.
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It can all be pulled into one uniform harmonizing
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digital backbone framework that could be tied to
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work management tools, it can be tied to your SAP systems,
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things like that, and all that could be
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pulled in to help you manage emissions.
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We also have
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all the levers to help you decarbonize.
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You know, Honeywell wants
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to be your one stop shop partner
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for all your decarbonization solutions.
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We have all the key levers
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that a company needs to help them decarbonize.
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We have not only
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the ability to help you manage the emissions,
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help you account for those emissions,
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do your voluntary and mandatory disclosures
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on those emissions, help you show
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the reductions over time,
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help you meet those KPIs, key performance indicators.
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But we also have tools to help you manage
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the equipment and processes, so that they're more
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energy efficient, that they're operating at their optimum.
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And that will reduce your emissions.
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We have energy transition technologies
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around hydrogen, carbon capture tools.
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So we have all these major levers for heavy industry
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to basically decarbonize
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and we have all the technologies,
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all the subject matter experts to
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help you with that decarbonization journey over time.
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How do you see the industrial emissions management
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evolving in the next 5 to 10 years?
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So emissions management is going to
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evolve over the next 5 to 10 years,
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really being driven a lot by policies
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and incentives that are happening throughout the world.
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For example, here in the United States, we
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have the Inflation Reduction Act,
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which has some key components.
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It has some carrots and sticks
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for companies to utilize it.
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I'll talk about the carrots first and then
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the sticks later. But the carrots, there's
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a lot of tax incentives around
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carbon capture, for example,
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or creating hydrogen and production tax credits,
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and carbon capture tax credits that are really lucrative.
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And it's like helps you basically
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lower that cost to do that energy transition.
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So that's going to be
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in full force over the next 5 to 10 years.
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And then the European market,
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if you are selling products to the European market,
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they're putting together what's
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called a carbon border adjustment mechanism
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and your products need to have some type of,
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you know, understanding of what the carbon,
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the carbon intensity of those products
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are going into that European market,
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the six products that they're covering
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right now with that carbon tax are aluminum,
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fertilizer, electricity, hydrogen,
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those are, and there's a couple more,
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but the key theme behind
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those products that are going to be taxed
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is that natural gas
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is the number one feedstock to make those products.
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And so having real good handle
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on your carbon intensity is going to be really
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important to help meet those markets.
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So, some of the sticks
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are in the under the Inflation
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Reduction Act, there's what's called a waste
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emission charge, for those that are
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in the methane value chain,
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the oil and gas value chain mainly.
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Where if you exceed a certain threshold,
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in your facility's emissions,
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so much emissions per, you know,
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production of, per production
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or per throughput of natural gas in your system.
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You'll be subject to a charge which could be very significant.
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Can start, it's starting at $900 per
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metric ton above the threshold up to
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over $1500 in 2026.
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So there's some potential
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sticks that could really be significant.
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So it's going to be really important
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to get a handle on your methane intensity.
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Thank you, Deanna.
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Before we close, you know, our podcast
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focuses on the future, but
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we always like to ask each of our guests to look back.
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When you were younger,
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what did you want to do when you grow up?
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I wanted to be a
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professional fisherwoman.
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I loved fishing. I grew up in
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the Pacific Northwest, trout fishing on rivers and camping
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in the evergreen forests of Washington State.
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And I just love fishing.
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And so, I wanted to be a professional fisherwoman,
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and, you know, that's something I probably
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will aspire to
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as I get into retirement.
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That's great. Perfect.
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Thank you so much again for joining us today.