1. Business of Anaerobic Digestion
Project Delivery Basics
BioCycle West – Pre-Conference Workshop
April 16th Portland Oregon
Adam Halsband – Business Development Manager
EISENMANN Corporation

2. Agenda
• Key Components of Project Development
• Key Elements of Project Delivery
• Project Delivery Approach and Drivers
– Project Development and Delivery Timeline
– Tools and Terminology
– Preliminary Engineering
– Project Delivery Organization
• Contract Structures
• Which Approach is Right for You?

3. Key Components of Project Development
Project Developer XYZ Group
Feedstock Technology- Operations
(WSA) Permitting
Offtake + Finance

4. Key Components of Project Development
Fully “Baked” Project
Feedstock Technology- Operations
Offtake Finance
(WSA) Permitting

5. Key Elements of Project Delivery
• Design
– Preliminary Design Engineering
– Detail Design Engineering
• Build
– Procurement
– Construction Management
– Construction
– Commissioning
• Operate
– Operations
– Maintenance
• Own/Transfer

7. Typical Project Timeline
Project Development
Master Planning
Waste Supply & Digestate
Offtake Agreements
Preliminary Siteing
Interconnect Verification Independent rate
Preliminary Engineering limiting step
Permitting
PPA
Finance Due Diligence
Detail Engineering
Project Kickoff
*
Construction Management Delivery method
Commissioning defines overlap
Operation and Maint.

8. Project Delivery Approaches
Higher Lower
Design-Bid-Build
Owner’s Const. Manage EPC Project
Risk Cost
EPC w/ Wrap
Design/Build
Lower Higher
BOT
Slower Faster
Completion Rate*

9. Tools and Terminology
• “Statement of Requirements”
– Prepared by Developer and/or Owner
– Captures key project information and goals
• “Project Execution Plan”
– Prepared by Engineering Firm
– Captures project execution strategy and milestones
• “Basis of Design” (BOD) - Preliminary Engineering
– Prepared by Engineering Firm
– 30% design with +/- 25% Cost accuracy
– Crucial preliminary engineering required for;
• Permitting
• Siteing
• Project Finance

10. Preliminary Engineering
• Preliminary Engineering Typically Includes:
– Project Execution Plan
– Process Flow Diagram
– General Arrangement Drawings with Equipment Layouts
– Site Plans
– Preliminary Equipment List with Sizes
– Heat and Mass Balance/P&ID’s
– Electrical Single Line
– Motor List and Electrical Loads
– Interconnect plan
– Process controls outline
– PHA – Process Hazard Analysis
– O&M Plan with estimated costs
– Project Cost Estimate

11. Preliminary Engineering
• Requires Multiple Disciplines
– Civil Engineering
– Mechanical/Process Engineering
– Electrical/Controls Engineering
– Project/Construction Management
– Procurement/Estimating
– Environmental Engineering/Permit Specialists

12. Project Delivery Organization Chart

13. Typical Project Timeline
Statement of
Project Development
Requirements
Master Planning
Waste Supply & Digestate Project
Offtake Agreements
Execution Plan
Preliminary Siteing
Interconnect Verification Preliminary
Preliminary Engineering
Engineering
Permitting
PPA
Finance Due Diligence
Detail Engineering
Project Kickoff
*
Construction Management
Commissioning
Operation and Maint.

14. Contract Structure
Warranty – Guarantees
• Project “Wrap”
• Performance Guarantee(s)
– Construction (Time and Cost) Guarantee
– Process Guarantee
Typical Contract Payment Terms
• Fixed Price
– Milestone payments
• Fixed Price with Escalator(s)
– Raw materials
– Currency
• Cost Plus – Open Book
• Shared Savings/Shared Overruns
• Schedule Reward

15. Which approach is right for you?
Project Delivery Approach Drivers
• Risk
– Strength of Developer/Owner Group
– Complexity of Scope
– Investor/Finance Tolerance
• Speed
– Integration of roles
– Rate limiting steps
• Cost
– Cash Flow
– Overall Project Cost Control
• Strategies to manage cost risks

17. Thank You
Adam Halsband
Business Development Manager
EISENMANN Corporation
815-482-4335
adam.halsband@eisenmann.com