diff --git a/Makefile b/Makefile
index 5580547..a25fb86 100644
--- a/Makefile
+++ b/Makefile
@@ -37,13 +37,9 @@ build/deploy.iso:  boot.iso container/$(IMAGE_NAME)-$(IMAGE_TAG) xorriso/input.t
 
 # Step 1: Generate Lorax Templates
 lorax_templates/%.tmpl: lorax_templates/%.tmpl.in
-	sed 's/@IMAGE_NAME@/$(IMAGE_NAME)/'                         $(_BASE_DIR)/lorax_templates/$*.tmpl.in > $(_BASE_DIR)/lorax_templates/$*.tmpl
+	$(eval _VARS = IMAGE_NAME IMAGE_TAG IMAGE_REPO_DOUBLE_ESCAPED)
+	$(foreach var,$(_VARS),$(var)=$($(var))) envsubst '$(foreach var,$(_VARS),$$$(var))' < $(_BASE_DIR)/lorax_templates/$*.tmpl.in > $(_BASE_DIR)/lorax_templates/$*.tmpl
 
-	sed 's/@IMAGE_TAG@/$(IMAGE_TAG)/'                           $(_BASE_DIR)/lorax_templates/$*.tmpl > $(_BASE_DIR)/lorax_templates/$*.tmpl.tmp
-	mv $(_BASE_DIR)/lorax_templates/$*.tmpl{.tmp,}
-	
-	sed 's/@IMAGE_REPO_ESCAPED@/$(_IMAGE_REPO_DOUBLE_ESCAPED)/' $(_BASE_DIR)/lorax_templates/$*.tmpl > $(_BASE_DIR)/lorax_templates/$*.tmpl.tmp
-	mv $(_BASE_DIR)/lorax_templates/$*.tmpl{.tmp,}
 
 # Step 2: Replace vars in repo files
 %.repo: /etc/yum.repos.d/%.repo
@@ -58,7 +54,7 @@ boot.iso: $(foreach file,$(_LORAX_TEMPLATES),lorax_templates/$(file)) $(_REPO_FI
           --isfinal --squashfs-only --buildarch=$(ARCH) --volid=$(_VOLID) \
           $(_LORAX_ARGS) \
           $(foreach file,$(_REPO_FILES),--repo $(_BASE_DIR)/$(file)) \
-          $(foreach file,$(_LORAX_TEMPLATES),--add-template $(file)) \
+          $(foreach file,$(_LORAX_TEMPLATES),--add-template lorax_templates/$(file)) \
 		  $(foreach file,$(ADDITIONAL_TEMPLATES),--add-template $(file)) \
 		  --rootfs-size 4 \
           $(_BASE_DIR)/results/
@@ -73,13 +69,8 @@ container/$(IMAGE_NAME)-$(IMAGE_TAG):
 
 # Step 5: Generate xorriso script
 xorriso/%.sh: xorriso/%.sh.in
-	sed 's/@IMAGE_NAME@/$(IMAGE_NAME)/' $(_BASE_DIR)/xorriso/$*.sh.in > $(_BASE_DIR)/xorriso/$*.sh
-
-	sed 's/@IMAGE_TAG@/$(IMAGE_TAG)/'   $(_BASE_DIR)/xorriso/$*.sh > $(_BASE_DIR)/xorriso/$*.sh.tmp
-	mv $(_BASE_DIR)/xorriso/$*.sh{.tmp,}
-
-	sed 's/@ARCH@/$(ARCH)/'             $(_BASE_DIR)/xorriso/$*.sh > $(_BASE_DIR)/xorriso/$*.sh.tmp
-	mv $(_BASE_DIR)/xorriso/$*.sh{.tmp,}
+	$(eval _VARS = IMAGE_NAME IMAGE_TAG ARCH VERSION)
+	$(foreach var,$(_VARS),$(var)=$($(var))) envsubst '$(foreach var,$(_VARS),$$$(var))' < $(_BASE_DIR)/xorriso/$*.sh.in > $(_BASE_DIR)/xorriso/$*.sh 
 
 # Step 6: Generate xorriso input
 xorriso/input.txt: xorriso/gen_input.sh
diff --git a/lorax_templates/configure_upgrades.tmpl.in b/lorax_templates/configure_upgrades.tmpl.in
index 688cf79..b0d1311 100644
--- a/lorax_templates/configure_upgrades.tmpl.in
+++ b/lorax_templates/configure_upgrades.tmpl.in
@@ -1,7 +1,7 @@
 append usr/share/anaconda/interactive-defaults.ks "%post --erroronfail"
-append usr/share/anaconda/interactive-defaults.ks "sed -i 's/container-image-reference=.*/container-image-reference=ostree-image-signed:docker:\/\/@IMAGE_REPO_ESCAPED@\/@IMAGE_NAME@:@IMAGE_TAG@/' /ostree/deploy/default/deploy/*.origin"
+append usr/share/anaconda/interactive-defaults.ks "sed -i 's/container-image-reference=.*/container-image-reference=ostree-image-signed:docker:\/\/${IMAGE_REPO_DOUBLE_ESCAPED}\/${IMAGE_NAME}:${IMAGE_TAG}/' /ostree/deploy/default/deploy/*.origin"
 append usr/share/anaconda/interactive-defaults.ks "%end"
 
 append usr/share/anaconda/post-scripts/configure_upgrades.ks "%post --erroronfail"
-append usr/share/anaconda/post-scripts/configure_upgrades.ks "sed -i 's/container-image-reference=.*/container-image-reference=ostree-image-signed:docker:\/\/@IMAGE_REPO_ESCAPED@\/@IMAGE_NAME@:@IMAGE_TAG@/' /ostree/deploy/default/deploy/*.origin"
+append usr/share/anaconda/post-scripts/configure_upgrades.ks "sed -i 's/container-image-reference=.*/container-image-reference=ostree-image-signed:docker:\/\/${IMAGE_REPO_DOUBLE_ESCAPED}\/${IMAGE_NAME}:${IMAGE_TAG}/' /ostree/deploy/default/deploy/*.origin"
 append usr/share/anaconda/post-scripts/configure_upgrades.ks "%end"
\ No newline at end of file
diff --git a/lorax_templates/set_installer.tmpl.in b/lorax_templates/set_installer.tmpl.in
index 13332ff..050ba0a 100644
--- a/lorax_templates/set_installer.tmpl.in
+++ b/lorax_templates/set_installer.tmpl.in
@@ -1 +1 @@
-append usr/share/anaconda/interactive-defaults.ks "ostreecontainer --url=/run/install/repo/@IMAGE_NAME@-@VERSION@ --transport=oci --no-signature-verification"
\ No newline at end of file
+append usr/share/anaconda/interactive-defaults.ks "ostreecontainer --url=/run/install/repo/${IMAGE_NAME}-${VERSION} --transport=oci --no-signature-verification"
\ No newline at end of file
diff --git a/xorriso/gen_input.sh.in b/xorriso/gen_input.sh.in
index b6fadeb..88a1eba 100644
--- a/xorriso/gen_input.sh.in
+++ b/xorriso/gen_input.sh.in
@@ -6,7 +6,7 @@ echo "-boot_image any replay"
 echo "-joliet on"
 echo "-compliance joliet_long_names"
 cd container
-for file in $(find @IMAGE_NAME@-@IMAGE_TAG@)
+for file in $(find ${IMAGE_NAME}-${IMAGE_TAG})
 do
     echo "-map $(pwd)/${file} ${file}"
     echo "-chmod 0444 ${file}"