Due Diligence in Renewables? Due diligence is a crucial step in every project from evaluating technology to securing funding to everything in between. What does a renewable fuels or renewable chemicals due diligence expert do? Due diligence (DD) 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 bio processing 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 through due diligence 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 an 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).
Lee Enterprises Consulting is the world’s premier bioeconomy consulting group, with over 100 highly qualified experts serving in all these areas, including doing due diligence in renewables . Take a 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. Call us at 1+ (501) 833-8511 or email us for more information. See Due Diligence for Bioeconomy Projects.