Due Diligence in Renewable Projects

Due Diligence in Renewables?  Due diligence (DD) is a crucial step in every project from evaluating technology to securing funding to everything in between.  What do renewable fuels or renewable chemicals due diligence experts do?   It is a comprehensive appraisal of a project or plant, undertaken by a prospective buyer, lender, or investor.  It is designed to establish the project’s assets and liabilities and evaluate its commercial potential.   When we speak of “techno-economic analysis” (TEA), we are referencing the combination of conceptual process design and production cost estimation activities. Whether the asset is an existing bioprocessing facility or power plant, or a project under development (and existing only on paper), this due diligence process is somewhat like hiring a mechanic to evaluate a used car prior to purchase.   Most lenders or investors insist on thorough DD investigations.

Renewable chemicals or renewable fuels due diligence experts can evaluate all aspects of a project.   This goes far beyond simply evaluating the plant and/or its equipment.  It encompasses due diligence in regulatory, legal, contractual, environmental, financial, technical, and operational realms.  An asset exists in contractual and regulatory space as surely as it exists in a physical state, and an experienced due diligence consultant knows precisely where to look for weaknesses.  The expert knows to look for such things as whether key environmental permits are soon to expire, whether regional supplies of feedstock are stable, whether certain pieces of equipment are worn out, and whether regulatory change is a threat.   These are but a few of the many aspects a DD expert should check. A due diligence expert also looks for hidden upside potential – things like plant expansion, market changes, or efficiency enhancements.    Due diligence typically includes a site visit, document review, and interviews with key personnel, culminating in a written report.

Large renewable energy and biochemical consulting firms certainly have experts in the more common areas like of bio and renewable fuels, biomaterials, biomass and biomass power, biomaterials, biochemicals, and biotechnologies.  But, they also have expertise in a wide variety of specialty services like expert witness testimony, techno-economic analysis, due diligence, feasibility studies, budgeting, project management, technology assessment, insurance, due diligence, risk management, benchmarking, intellectual property, HAZOP, financial modeling, competitor analysis, and assistance with RIN and Low Carbon Fuel Standards (LCFS) matters.  These firms should also be able to assist with other things like Aspen plus, logistics, bioreactor design, municipal solid waste remediation, syngas, and bio-based product development, carbon credits, climate change analysis, environmental permitting, equipment sales, experimental validations, grant writing, IP strategy, life cycle analysis (LCA), plant operations, plant sales, and auctions, and risk analysis (FMEA).

For over 25 years, Lee Enterprises Consulting has been assisting companies and investors with issues relating to sustainability, bioenergy, biomaterials and chemicals, biotechnologies, and feedstocks.   With over 150 consultants, we have the diverse expertise and geographical reach to assist in virtually any bioeconomy project worldwide. These seasoned professionals average over 30 years each in their industry experience.  Our ability to assemble these professionals into multidisciplinary teams allows us to fully integrate the technical, scientific, and regulatory aspects of a project, and combine them with years of hands-on experience.  Take a look at our experts and the services we provide.  You will note that most of our experts are also available for ancillary engagements and advice, for specialty engagements like serving as expert witnesses in litigation matters.  A good overview of our group is found in this video.  Call us at 1+ (501) 833-8511 or email us for more information.

See Due Diligence for Bioeconomy Projects.