Ron Jones

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Ron Jones
Business Development Manager
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P: 314-682-1571
F: 314-682-1600

Biomass Power Plant Due Diligence

Location: Northeastern Texas

Client: Confidential

Completion Date: 2008

Burns & McDonnell conducted a due diligence review on a 100-megawatt (MW) biomass power plant under development in Texas. The client engaged Burns & McDonnell to review the proposed technical design, capital cost estimates, project permits and major equipment contracts. The review included identification of project development risks before the client invested in the project.

  • Due diligence review
  • Risk assessment
  • Technical review

The client was contemplating an investment in a renewable energy project and a newly formed limited liability corporation managing the project. The project consisted of a 100-MW biomass-fueled power plant that was under development in northeastern Texas. Burns & McDonnell assisted the client in evaluating the project and the project risks before investing.

The due diligence review included:

  • An analysis for technical and financial merit of the development work that had been conducted to date and the work to be performed to complete the project
  • A review of the project company and the overall viability of the project
  • An assessment of the technology being proposed and the overall plant design
  • An analysis of whether the engineering and construction approach would be sufficient to complete the project
  • A review of the project capital cost estimates and major equipment contracts
  • A review of current and required licenses and permits needed for project completion and operation
  • A risk analysis identifying capital cost inflation risks, permitting concerns, construction and contract risks, and risk mitigation strategies
  • A review of the interconnection arrangements
  • A technical review of the plant engineering and design relative to industry standards
  • Startup company
  • 100-MW biomass power plant
  • Due diligence on development documents and process
  • Technical review of major equipment and engineering design