Heating pellets from residual wood

Due Diligence

A regional Swiss power company

≈50 Mio. €

Switzerland

Heating pellets,residual wood, business model, business plan

Project Content

Due Diligence for a plant, which produces heating pellets out of residual wood

Expiration

The main focus of this project was on the assessment of a new business model. It was planned to take the plant back into operation with some technical enhancements Therefore, we firstly sighted important documents such as the business and the financial plan, including all contracts with suppliers. Secondly, an inspection of the modifications within the plant and a thermodynamic evaluation took place.

Results

We found technical errors in the system itself as well as forecast errors in the business model. These shortcomings would have effected costs of up to 40 million € and lead to a total loss of the investment.

Implementation

It was possible to prevent a big financial loss to the investor through the comprehensive previous examination of the plant.

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