The main objective of the Phase 1 project was to analyze the process economics in order to have a detailed view on the CAPEX and OPEX for a pilot scaled-up plant of 10,000 tonnes/year.
This analysis encompasses the feedstock price, the polyol production cost as well as the expected price customers are willing to pay, including considerations on possible premium price strategy for such “eco” alternative.
In particular, the main activities carried out relate to:
Technical Feasibility
Plan of the scale up production and analysis of the process economics, including analysis of CAPEX (collected by suppliers) and OPEX (calculated based on projections from the current pilot plant).
Streamline of the production operations, analysing the in-bound and out-bound logistics, the selection of the suppliers of raw materials (including rPET), and the analysis of the sensibility of the process economics with respect to the price of raw materials.
Business Feasibility
Size the reachable customers and a reliable market share: verification of EU/global market size, evaluating the number of customers to be reached each year after market launch in order to estimate robust financial projections; update competitor analysis.
Establish a sound Go-to-market Strategy: revenue model, pricing and promotion strategies will be reviewed; a commercialisation plan will be drafted; strategic partnerships facilitating sales and clients outreach will be searched and identified. According to the company’s growth strategy and plan, alternative business models will be explored to propose different sale scenarios. Revenues and profit can increase thanks to license offerings.
5-years financial projections: profit&loss account, cash flow, break-even analysis, ROI calculation. An investment plan will be prepared with a cost breakdown of all activities necessary to conduct a successful product development and market launch.
Risk assessment & Contingency Plan: The main potential risks for the product implementation and commercialisation (management, finance, technical challenges or setbacks, change of partners in the supply chain, changes in market trends) will be identified, described and mitigation actions planned.
To achieve such goals, we have performed the following tasks:
1. Analysis of the process economics
2. Extensive polyurethane market analysis.
3. Technology Assessment and Contingency Plan.
4. Definition and refinement of the business model.
5. Improvement of the existing business plan.
The outcomes of this Phase 1 allowed us to:
• Confirm the viability of the technology at industrial scale
• Have an understanding on how to design and commission the first demo plant
• Engage stakeholders and suppliers to be involved in the design and construction of the plant
• Engage with potential customers interested to test the polyols produced by the demo plant
Moreover, according to the results obtained during the Phase 1 feasibility study, we have evaluated and defined the technological and economical needs for the development of the Phase 2 project aimed at producing a ready-to-market solution.
