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Project development process
Based on its experiences and global network the company identifies areas for new CHP-facilities. EcoEnergy initiates discussions with corporations, institutions and authorities, leading to agreements to develop a new CHP-facility.
Today the company develops CHP-facility projects in Ukraine and in China.
EcoEnergy performs a feasibility study and develops a commercial structure, including off-take agreements, EPC turnkey contract, Operation and Maintenance (O&M) contracts. After preliminary agreements have been reached EcoEnergy starts a process to design the new CHP-facility. The Development process usually consists of two phases; Development and Financing, both interdependent of each other for the success of the project.
The purpose of the development is to set up the SPV with all long term agreements and permits required.
An initial evaluation of the terms and conditions for debt funding is conducted early in the development phase in order to confirm the financial feasibility of the project. Once completed, the development team will proceed with the negotiation of the term sheets. With the signed term sheets and satisfactory progress and confirmation that permits will be achieved, an arranger for the financing is procured.
After the design process EcoEnergy procures the Turnkey EPC contractor which subsequently will build the CHP-facility.
With the process in motion, the parties to the project; the development team, all parties will negotiate the project documents. Once all conditions are satisfied, financing is achieved and the EPC turnkey supplier is given notice to proceed.