Background
Energy costs are critical to the operation of the business. The customer understood that Combined Heat and Power offered a good option to reduce expense over the next 20 years.
Problem
Evaluating solutions required technical expertise; knowledge of the investment and commodity markets; understanding of carbon targets and gas spark spread.
Process
Alpheon provided financial and technical expertise to assess risks and multiple offers from both investors and contractors including:
1 Reconstruction of energy demand profile and outlook for 3 sites in question
2 Modelling of energy scenarios using industry, market and in-house data
3 Development of base-case and assessment of offers and impact on operations
4 Appraisal of technical proposals and optimal configuration options
Result
A clearly defined strategy for the CFO, revised optimum CHP capacities and a confident negotiation position with suppliers.