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PROJECT DEVELOPMENT

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Defining Strategy & Scenarios Industrial and agricultural sectors are changing continuously. That’s why local, regional and international companies

need to review and define their strategy to adapt to the new circumstances.

BA2C Europe/Latin America can support local and international stakeholders during this process to create, assess or

adapt stakeholders’ strategy and to create potential scenarios for new situation’s and circumstances.

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Ideation & Pre-Feasibility BA2C Europe/Latin America can support local and international stakeholders to create potential scenarios, assess

and evaluate options and implement your companies’ choices to adapt to the new situation and circumstances.

Example with pre-assessment criteria next page

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Example Pre-Assessment BA2C Europe/Latin America can support local and international stakeholders with a quick assessment to evaluate a

potential investment. An example of assessment criteria we investigate during a pre-assessment for a project is

shown above.

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Feasibility & Validation BA2C Europe/Latin America can support local and international stakeholders to prepare feasibility studies from a

market, logistical, regulatory, economical and technical perspective. These studies will result in better understanding

of the technical and economic viability of the project which is important for the bankability and final investment

decision.

Tools BA2C Europe/Latin America is familiar with to support stakeholders during the validation phase are among

other NPV modelling and “real option” modelling.

In the (more sophisticated) “real options” (financial) modeling approach client can assess various options (for

instance co-generation against LNG against ammonia/urea or against natural gas pipelines) in different scenarios

(high/low natural gas/product price, market developments etc.) taking into account the options which are not

possible anymore after selecting another option (like natural gas cannot be processed twice). More info next page

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Real Options Model A valuation based on “real options” could be used by local and international stakeholders to assess how the

feasibility/profitability of an investment can be improved.

When to use Real options are a way to quantify the flexibility in a project that is available and under control of management. NPV

(or IRR) alone is not always a good indicator as negative NPV does not mean a firm must not invest. By taking into

account the option value of the investment the value to invest may be very different from a classic NPV and IRR

calculation.

Examples of real options method available to management:

• Different options like developing a co-generation, LNG, ammonia/urea plant, etc. or a combination of these

plants;

• Options related to the size of the project;

• Options for staging and phasing of investments.

Partner For the real options modelling BA2C Europe/Latin America teams-up with DSM Aces, a consultancy organization

which is part of the Netherlands (petro) chemical company DSM. Their consultants have executed assignments for a

variety of clients like leading petrochemical, natural gas and oil companies like DSM, OCI Nitrogen, Shell and the King

Abdullah Petroleum Studies & Research Center (KAPSARC) from Saudi Arabia but as well for organizations like the

Road Authority in the Netherlands.

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Financing & Partnering BA2C Europe/Latin America can support local and international stakeholders to select the approach, technology

solution and partners (like feedstock suppliers, off-takers, finance partners and EPC contractors) that best fit the

needs of our client.

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