Economics of Pilot and Development Units for De-Risking of Commercial Processes

Pilot and demonstration plants are often required to de-risk technology prior to justifying expenditure on a commercial investment. They must however be justified on the basis of the amount of de-risking delivered, relative to cost, scope, and timing required. Net present value (NPV) calculations including the cost of pilot and demonstration units on commercial value, together with a risk matrix and technology development roadmap, can be used to differentiate between process concepts, and to set scope and scale of pre-commercial units. Methodologies for conducting this analysis will be presented, along with some generic examples where process simplification and unit operations redesign led to reduced cost and timing for piloting and development phases.