Not apples to apples. Just the right fit.
Site selection in the global market is a complex, process. In order to build capital intensive projects in the 21st Century, a host of factors comes into play: technical, economic, and political. The process is iterative and requires intensive relationship management, distant travel, and meticulous quantifiable analysis.
Based on your company’s objectives, specific infrastructure needs, non-dilutive government financing interests, company values and culture, we provide a select choice of regional or global site locations that will bring your technology into being from a path of least resistance. That means getting to market, faster.
Phase 1: Site Infrastructure Regional Target Analysis. (4-8wks)
Work scope includes complete understanding of technology needs at relevant project scale including: analysis of countries, regions, and locales that are appropriate for the technology and provide an expedited route to project development.
This site selection phase of work includes working with a technical specialist to determine technology readiness and infrastructure needs. Separate from a complete technology due diligence offering, this work stream aggregates foundational information regarding commercial scale project deployment, and initial contact with economic development agencies, to devise a long list of sites and to determine optimal regional focus.
Site selection technology analysis is based on multiple diverse factors:
- Infrastructure needs for transportation, rail, wastewater treatment discharge capacity, electricity transmission capacity, emissions reporting requirements, waste removal, regional construction capacity and water risk;
- Site dependent capital cost reduction;
- Federal and state finance incentives;
- Feedstock proximity;
- Capital cost variables;
- Brownfield environmental risk;
- Operating cost reductions;
- Sustainability / LCA improvement;
Deliverables for Phase 1 work can include:
- Long list of 10-15 sites;
- Initial determination of incentive opportunities;
- Preliminary weighted factor analysis specific to your company;
- Presentation and report of government incentives strategy;
Phase 2 : Detailed Site Analysis & Offer Negotiation (3-5mos)
The Detailed Site Analysis & Offer Negotiation phase begins with client deliverables necessary to engage state, local, and federal government to negotiate grants, loans, bonds, tax credits, tax abatements, and any commercial lending opportunities needed in preparation for project finance. This may include, audited financials, letters of intent, partnership agreements, off-take agreements, a project specific business plan, available cash equity, corporate loan guarantees, process guarantees and any other contact or connections that would support deployment of the technology.
Incentive offers often increase in the final stages of negotiation and acceptance (Phase 3) if first engaging in Phase 2 for foundational creation of a competitive, focused, final negotiation with top sites.
BioEconomy Partners work scope in Phase 2 will include multiple teleconference and in person technical meetings with local, state and federal economic development agencies and corporations to determine infrastructure site viability, incentive offerings, and lead lender availability ie. agricultural co-ops to increase loan guarantees or local banking consortiums.
In addition, this phase includes development and analysis of other core considerations such as political environment, legislative landscape, corporate citizenship , workforce training availability, and academic collaborations. In parallel, meeting and discussion with clients to determine secondary decision factors and their weight: company culture, community, logistics (ie airports), economic development capabilities, current political landscape.
Deliverables for Phase 2 work may include:
- Presentation report of top 3 sites;
- government incentive offers in development;
- Incentive gap analysis;
- initial incentive quantification;
- infrastructure challenges and opportunities for each site;
- detailed client needs analysis with factor shifts, and priorities adjusted as needed;
This deliverable is not definitive, or intended in any way to be indicative of final offers;
Phase 3: Decision making and Offer Acceptance (4wks)
The Decision Making and Offer Acceptance phase includes site visits of top three sites, final meetings and gap closing on all incentive offers. Based on an initial negotiated set of final offers (without formal offer letters) site incentives will be quantified, and cost modeled for each top site (max 3). BioEconomy Partners will provide a weighted scoring method of both primary and secondary considerations as an overlay and assist your company in process decision making to arrive at the final site.
Deliverables for Phase 3 work may include:
- Succinct presentation of top sites with weighted scores;
- Final offer letters;
- Quantified incentives;
- Client chooses site; accepts government incentives offer;
- Begins project finance phase;