Due Diligence in Biomass Project Acquisition

What does a due diligence expert do in biomass-related projects?  Capital projects such as biomass plants are often sold at various stages of development, including pre-construction, mid-construction, and fully operational.   Investors seeking to purchase such assets must perform their own diligence regarding the financial, legal, regulatory, technical, and environmental aspects of a project.    A seasoned due diligence expert, or team of experts, is essential to protect the investor, and identify risks and any outstanding upsides associated with the project.

Due diligence experts cover a wide variety of issues.  Are the offtake and feedstock contracts within the market and structured with sufficient duration and guarantees?  Is there a clear contractual and physical path to market?  Are construction costs reasonable, and backed up by liquidated damages for cost and performance?  Is the site suitable and properly permitted?  Are any key contracts expiring early?  Does the entire suite of contracts and permits form a seamless whole that protects revenues?  Are there disconnects in schedule or warranty handoffs?

Large renewable energy and biochemical consulting firms certainly have experts in biomaterials and biochemicals as well as the more common areas like bio and renewable fuels, biomass and biomass power, feedstocks, and biotechnologies.  These larger groups will also have expertise in other things like animal health products, aquaculture, bio-fertilizers, bio-fibers, biomass to sugars, bioplastics/polymers, enzymes, food ingredients, industrial chemicals, latex, lubricants, nanocarbon/cellulose, nutraceuticals, organometallics, rubber, and solvents.

With over 150 consultants worldwide, Lee Enterprises Consulting has the diverse experts and geographical reach to assist in virtually any bioeconomy project. Our highly qualified teams bring a unique integration of technical, scientific, regulatory, and hands-on experience to any project.  Look at our experts and the services we provide.  Most of our experts are also available to advise and serve as expert witnesses in bioeconomy litigation matters.  For the larger projects, we specialize in putting together full-service, interdisciplinary teams with one point of contact.  See a video about LEC here.  Call us at 1+ (501) 833-8511 or email us for more information.