Feasibility analyses are used to determine the viability of a project idea, ensuring that the project is legally and technically feasible as well as economically justifiable.
Our feasibility studies offer a comprehensive review of the background of the project, the description of the manufacturing processes, the quality and market of the final products, details of operations and management, estimated future market developments and policies, expected financial data, legal requirements and tax obligations.
The content is always adapted to the needs of the customer defined in common discussions.
Prefacing a feasibility study often a pre-study is recommended analysing and comparing different options as first basis for the decision by the project owner and to identify the most promising concepts. Afterwards, a focused full feasibility study is performed in relation to the location, capacity, raw material composition and technology specified on the basis of the pre-feasibility study.
A business plan addresses comparable topics as a feasibility study. But in contrast a business plan has a planning function and defines the actions needed to take a business idea into reality.
A business plan should only be conducted after the investment project has been deemed viable by a feasibility study.
A business plan related to an investment project is often referred to as an investment plan.
Investors and financing institutions often require that independent expert(s) analyse and comment the proposal presented to them. The purpose of the expert opinion is to review the proposal for its correctness, completeness and coherence applying the knowledge accumulated by the expert(s). Typically, it incorporates all technical, financial and management related issues of the proposed project. The expert opinion must pay special attention to the long-term sustainability of the project and to the sensitivity and risk analyses.
Project developers and potential investors often are themselves directed by a single technology supplier whose primary interest is to sell its technology. Nevertheless, there are a number of different state-of-the-art technological solutions available on the market and these must be compared in view of the best interests of the project developer (considering the specific conditions of the project). Such analysis can and should be provided by experts who have the necessary knowledge and experience on the features of different technologies and are independent from any technology supplier and can objectively elaborate the most suitable and feasible technological concept. The recommendation by the independent expert(s) includes the contact information on several technology suppliers, which are deemed to be best prepared to provide the best technical offers. The technological concept also defines those key performance indicators which should be taken into consideration when comparing the different solutions.
Renewable gas projects are generating “green” value, which can be explicitly defined by the GHG emission reduction achievable in comparison with the fossil fuel comparators (the GHG emission reduction targets/thresholds are often mandated by EU and national legislation). With increased attention to fighting climate change this “green” value is expected to gain higher market value. The “green value” is becoming a particularly important revenue source. The GHG emission reduction potential of a renewable gas project is determined by the feedstock composition, the applied technological solutions, the logistics, the efficiency and the integration of the facility into its environment. The evaluation of the GHG emission reduction potential should be conducted in the early stage of the project development, while its outcome may have a direct impact on marketing the target product(s), on selecting the technology and project concept optimisation.
The physical value of a renewable gas is basically the same as of its fossil counterpart and can be well defined by the physical/chemical characteristics. On the other hand, the “green” (renewable, sustainable, environment-friendly, etc.) value is intangible and is represented by written or electronic documents (certificates, guarantees of origin, etc.).
A number of certification schemes have been developed both on EU and national levels (the latter usually corresponding to the requirements of the national support system). The standardisation and harmonisation of different certification schemes on the European level is in progress. In view of the fact that monetising the “green” value will be increasingly important for the operation, project developers need clear guidance about the functions of the different certificates and about the conditions of acquiring and marketing them. R2GAS experts calculate GHG emission for a running project as well as guides its customers through the certification process for national and international renewable gas sales.
Several biogas/biomethane/renewable gas production units suffer from reduced efficiency, fluctuating biogas production and composition, weak economic indicators. Based on their solid experience and knowledge the experts of R2Gas evaluate the technical, biotechnological and economic performance and provide comprehensive recommendations for the improvements, which may include management optimisation, replacement of certain pieces of equipment, changing operating conditions, using additives and/or auxiliary materials, taking maintenance actions.
Assessing the operational risks is an especially important part of project development. The practical, industrial experience accumulated at the members of R2Gas enables the reliable identification of potential risks and the determination of the appropriate measures to avoid and/or manage them.
Companies and corporations are increasingly interested in considering the procurement of renewable gases for partial or full replacement of natural gas (either as energy carrier or process feedstock). Such replacement offers predictability of supply costs and independence from the volatile natural gas markets – in addition to the positive impact on the environment.
R2Gas offers comprehensive review of all relevant technical and economic factors for renewable gas supply, among them the present and estimated future market balances both for physical product and certificates, patterns of developments in technology and production costs.
More and more companies are demonstrating commitment to climate protection and are engaged in seeking the ways for reducing the GHG emission caused by their operations.
Renewable gases offer one of the best options to companies both in relation to decarbonising their energy supplies and replacing fossil methane in chemical processes.
R2Gas is offering assistance to these companies in form of providing independent, thorough analysis of potential options consequently focusing on the interests of the client.
The lower end of biomethane market prices can be estimated on the basis of forecasted costs of production + return on capital. R2Gas analyses the potential for reducing the present cost of production due to improvements in the anaerobic digestion and biogas upgrading technologies. (This minimum price level is not influenced by the developments on the natural gas markets).
The upper end of future biomethane market price can be forecasted in direct correlation with the natural gas prices, as prevailing natural gas price + green value. The green value is expressed primarily in the GHG emission reduction. The basic assumption is that the green market value of biomethane will be set on the overall GHG emission market in competition with other GHG emission reduction pathways. The analysis aims at estimation for future biomethane prices in view of the drivers of the future GHG emission markets and their effects on biomethane pricing.
A business model is a company's core strategy for profitably doing business. Business models are important for both new and established businesses. Business models help start-up and developing companies in attracting investment, guiding, and motivating management and staff. The business model of the company is an essential information source for investors evaluating ventures or companies.
The starting component of the business model is the value proposition. This is a description of the goods or services that a company offers stated in a way that differentiates the product or service from its competitors. Customer segments, customer relations, communication channels, key partners, key activities, key resources, cost structure and revenue streams are integral parts of a business model. R2GAS members have thorough experiences in consulting new and established companies during start up and development.
Potential financial investors need professional, independent evaluation of the market environment, technical status, present performance, bottlenecks, improvement, and expansion options for the installation they are considering acquiring. This technical due diligence requires comprehensive evaluation of the target market, applied technologies in view of the state-of-the-art of the industry. It should identify the technical risks of operation and outline the technical measures necessary for maintaining and/or increasing the production.
A professional, fact-based assessment of short/medium/long term renewable gas production potential in the country or the region is a useful source of information for the policy makers.
The technical potential is estimated using literature and practical data accumulated at the R2Gas members on biogas yields of different feedstocks.
R2Gas does not limit the analysis to the technical potential, sustainability and feasibility considerations are given proper attention too. Further, the correlation between achievable actual production and applied promotion measures is presented to assists the policy makers in their respective decisions.
The development of the European biogas industry has been primarily determined by the national support policies.
R2Gas members have direct personal experience on the efficiencies and deficiencies of these measures in most European countries and are in the position to recommend renewable gas related energy and climate policies and support measures which offer measurable effects and are acceptable for the society
Renewable gas technologies (biogas, biomethane, synthetic methane, hydrogen) provide the highest benefits if applied integrated into regional energy supply systems.
With the growing share of variable solar and wind in power generation the balancing capabilities of renewable gases will be increasingly important for ensuring reliable decentralised energy supplies.
The recommendations of R2Gas are based on comprehensive evaluation of all relevant aspects, such as technical and economic feasibility, sustainability and public acceptance.