
Step 1 - Opportunity Assessment
- Technology understanding
- Use of components that currently exist in the market
- Market potential for the use of the technology
- Alternative uses for technology and its derivatives
- Expansion capabilities of the project
- Whether the technology will need to be regulated
- What approvals are required to build and operate the technology
- Environmental considerations
- What security is required over the technology in terms of patents / trademarks / copyrights
- Contact with host government departments and local authorities
- Identification of partners: industrial and financial
- Initial financial appraisal
- Financial certainty of opportunity
- Initial risk analysis
- Timing of Project development
- Resource requirements
- Drafting of Co-operation agreements with project partners
Step 2 - Project Definition
- Assignment of roles
- Choice of advisors such as; market, technical, tax and accounting, legal, regulatory, planning, environmental
- Technology augmentation
- List of activities
- Full timescale with agreed milestones
- Technology fully documented (blueprints)
- Resources and Logistics
- Location – knowledge of specific zoning for local /national government support
- Environmental assessment / reporting
- Budgeting and investment from project parties in terms of time and initial equity
- Technology Management
- Market for technology
- Alternative uses for the technology and its derivatives
- Supplier identification
- Patenting / Licensing requirements
- Regulatory Assessment
- Permits / certificates required
- Supply Chain (potential sources and identification of potential weaknesses)
- Competitor analysis
- Establish legal entity/ies
- Funding sources identification and analysis
- Funding of project vehicle / seed equity raise
- Project Structure (listing of agreements required)
- Operational and maintenance plan
- Project and Business Plan (project finance, sales or service model)
- Financial Plan to support business plan
- Back up planning
Step 3 - Permitting and Licensing
- Preparation of permitting documentation
- Site plan and design
- Outline design of project
- Environmental impact assessment
- Project emissions
- Particular licenses / redefining legislation
- Health and Safety requirements
- Grid connection
- Local and national planning (eg. transport movements and links)
- Geotechnical survey
- Archaeology survey as necessary
Step 4 - Risk Analysis
- Risk Identification
- Technical
- Environmental
- Location / site
- Feedstock
- Revenue
- Offtake
- Legal
- Financial
- Regulatory
- Counterparties
- Operational
- Timescale
- Risk Mitigation
- Insurance availability, construction and operation / exploitation period
- Risk management
Step 5 - Business Planning Post Permitting
- Re-assignment of Roles
- Re-defining technology as necessary
- Optimisation of technology
- Refining of business plan and timing
- Execution of business plan
Step 6 - Supply Chain
- Industrialisation
- Purchase Specification development
- Purchase terms and conditions developed
- Engage with suppliers – create competition
- Contractual structure and agreements drafted
Step 7 - Financing
- Implementation of financing plan
- Information Memorandum
- Financial modelling plus auditing
- Tax efficiency
- Create competition between potential funding sources
- Use of existing relationships and develop new relationships
- Identification of grant funding (local, national and international)
- Equity (ultra and high net worth individuals, funds, institutions)
- Asset financing
- Senior debt (corporate, project, securitisation)
- Tax wrappers
- Structured financing – use of tax efficient structures
- Feedstock and revenue off-take agreements
- Water usage agreements
- Grid connection agreements
- Waste material disposal agreements
- Operational and maintenance agreements
- Funding and security agreements
- Insurance arrangements
- Refinancing through initial public offering, trade sale, re-leveraging
Step 8 – Construction / Technology Development
- Construction Milestones
- Construction milestone sign off by independent technical advisor
- Independent technical verification of technical capabilities/construction schedule for the funding parties
- Manufacturing procedure development
- Quality control development
- Dealing with change orders
- Dealing with any potential changes required to project and financing documents
Step 9 – Operational Exploitation Period
- Joint venturing / licensing arrangements for ex home countries
- Financial reporting
- Operational Reporting
- Constant review of business plan
- Constant review of market
- Constant review of competitors
- Constant review of financial markets
- Dealing with any potential changes required to project and financing documents
Step 10 – Exit Strategy
- Timing range
- Return required
- Source of exit;
- trade sale
- initial public offering
- re-leveraging
- merger