Appropriate due diligence is essential for any development or acquisition project. It provides an assessment of a project’s deliverability and forms the basis for understanding project risk. A high quality due diligence assessment undertaken by a team which can add value to the process will enhance a project’s deliverability and minimise risks. Only by objectively assessing a project and its associated risks will all stakeholders be confident that a project can proceed and that their investment is secure.
The big issues
The waste management sector now employs sophisticated processing technologies which need experts to design, operate and maintain them. A project will require assessment of a range of technical and associated issues including:
- Advanced technologies (e.g. gasification, pyrolysis, plasma arc, autoclave).
- Complex configurations of different technologies and processing units.
- Waste sources/feedstock supply and quality.
- Waste transfer arrangements.
- Waste reception and storage capabilities.
- Pre-treatment operations.
- Processing capabilities.
- Product quality and production.
- Market outlets, prices, security and trends.
- Treatment of residues.
- Power and heat off-takes and grid connections.
- Assumed subsidy levels (e.g. FITS, RHIs).
- Performance guarantees.
- Fluctuations and changes in waste characteristics and composition.
- Permit, consent and authorisation requirements.
It is essential that the due diligence assessment is undertaken by a team with an appropriate range of skills. The team needs to be able to assess engineering, environmental and health and safety issues but will also need an excellent appreciation of wider market issues and the evolving policy context. All these factors can have a significant effect on the success or failure of a project in this sector.
Why Ricardo Energy & Environment?
Ricardo Energy & Environment has developed a skilled, committed and flexible due diligence team. We put together tailored approaches for each project we undertake because no two waste projects are the same.
- Ricardo Energy & Environment has a long track-record of assessment of a range of treatment technologies in both energy and waste sectors.
- Ricardo Energy & Environment provides support to major waste operators, small niche project developers, technology suppliers, the public sector and investors.
- Ricardo Energy & Environment has the necessary technical expertise including experts in waste processing, energy generation technologies, waste composition, recyclate markets and air quality issues.
- Ricardo Energy & Environment works with specialist engineering partners when required to provide clients with the right mix of expertise.
Ricardo Energy & Environment can deliver the following key services in support of technical due diligence audits:
- Assistance with technology and provider selection.
- Project risk assessment.
- Project programme review.
- Review of conceptual designs.
- Assessment of process guarantees.
- Assessment of environmental issues and compliance.
- Feedstock assessment and waste composition analysis.
- Review of energy off-take and product outlets.
- Assessment of Feed-in Tariff and Renewable Heat
- Incentive assumptions.
- Health and safety assessment.
- HAZOP assessment.
- Contract assessment.
- Market reviews.
- Management team and staffing support.
- Process efficiency analysis.
- Reference plant inspection.
- Review of project build and lifecycle costs.
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