Business of Anaerobic Digestion Project Delivery Basics

Transcription

1 Business of Anaerobic Digestion Project Delivery Basics BioCycle West Pre-Conference Workshop April 16 th Portland Oregon Adam Halsband Business Development Manager EISENMANN Corporation

2 Agenda Key Components of Project Development Key Elements of Project Delivery Project Delivery Approach and Drivers Project Development and Delivery Timeline Tools and Terminology Preliminary Engineering Project Delivery Organization Contract Structures Which Approach is Right for You?

3 Key Components of Project Development Project Developer XYZ Group Feedstock (WSA) Technology Permitting Offtake Operations + Finance

4 Key Components of Project Development Fully Baked Project Feedstock (WSA) Technology Permitting Offtake Operations Finance

5 Key Elements of Project Delivery Design Preliminary Design Engineering Detail Design Engineering Build Procurement Construction Management Construction Commissioning Operate Operations Maintenance Own/Transfer

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7 Typical Project Timeline Project Development Master Planning Waste Supply & Digestate Offtake Agreements Preliminary Siteing Interconnect Verification Preliminary Engineering Independent rate limiting step Permitting PPA Finance Due Diligence Detail Engineering Project Kickoff Construction Management Commissioning Delivery method defines overlap * Operation and Maint.

8 Project Delivery Approaches Higher Design-Bid-Build Lower Owner s Risk Const. Manage EPC Project Cost EPC w/ Wrap Design/Build Lower BOT Higher Slower Completion Rate* Faster

9 Tools and Terminology Statement of Requirements Prepared by Developer and/or Owner Captures key project information and goals Project Execution Plan Prepared by Engineering Firm Captures project execution strategy and milestones Basis of Design (BOD) - Preliminary Engineering Prepared by Engineering Firm 30% design with +/- 25% Cost accuracy Crucial preliminary engineering required for; Permitting Siteing Project Finance

10 Preliminary Engineering Preliminary Engineering Typically Includes: Project Execution Plan Process Flow Diagram General Arrangement Drawings with Equipment Layouts Site Plans Preliminary Equipment List with Sizes Heat and Mass Balance/P&ID s Electrical Single Line Motor List and Electrical Loads Interconnect plan Process controls outline PHA Process Hazard Analysis O&M Plan with estimated costs Project Cost Estimate

11 Preliminary Engineering Requires Multiple Disciplines Civil Engineering Mechanical/Process Engineering Electrical/Controls Engineering Project/Construction Management Procurement/Estimating Environmental Engineering/Permit Specialists

12 Project Delivery Organization Chart

13 Typical Project Timeline Project Development Master Planning Waste Supply & Digestate Offtake Agreements Preliminary Siteing Interconnect Verification Preliminary Engineering Statement of Requirements Project Execution Plan Preliminary Engineering Permitting PPA Finance Due Diligence Detail Engineering Project Kickoff Construction Management * Commissioning Operation and Maint.

14 Contract Structure Warranty Guarantees Project Wrap Performance Guarantee(s) Construction (Time and Cost) Guarantee Process Guarantee Typical Contract Payment Terms Fixed Price Milestone payments Fixed Price with Escalator(s) Raw materials Currency Cost Plus Open Book Shared Savings/Shared Overruns Schedule Reward

15 Which approach is right for you? Project Delivery Approach Drivers Risk Strength of Developer/Owner Group Complexity of Scope Investor/Finance Tolerance Speed Integration of roles Rate limiting steps Cost Cash Flow Overall Project Cost Control Strategies to manage cost risks

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17 Thank You Adam Halsband Business Development Manager EISENMANN Corporation