Keywords: Fertiliser Project, Feasibility, Financing, Risk, Engineering.
This paper describes the various planning steps that are required for a project from the conceptual stage through to the initial plant start-up. Although every project is different, and thus not every detail raised in this paper is always applicable, the key issues are all covered.
The main steps of any project are normally:
– Conceptual Study.
– Feasibility Study.
– The Bidding Process.
– Project Execution.
The depth of study becomes more detailed through this sequence, thus allowing an increasingly informed decision to be made at each step. However, the greater degree of detail also incurs a higher cost. To minimise expenditure, it is important that potential projects are reviewed logically and dispassionately at each step of the process, so that if they do not meet pre-set criteria, they can be stopped (or put on hold until the market conditions improve).
The studies can be performed either by the Project Sponsor with assistance from in-house specialists, or by employing a Consultant who has experience in the particular industry.
The level of work required is extensive in order to reach a sound investment decision. The fact that many projects are stopped during one of the review stages shows that what at first appears to be a potential prospect, will often not have the necessary credentials to justify actual implementation.
John A Hallsworth and Christopher R Fawcett, Kvaerner Process Technology
36 pages, 1 tables, 3 figures, 7 plates, 2 refs.