Utilities & Energy

W|EPC: Energia Costa Azul (ECA) Phase 1 – Project Update Q422

Hydrogen Roadmap – Fuel Comparisons: Emissions, Feedstock, & CI Scores – Future Of Transportation (Part 3)

W|EPC: Future Of Transportation – Ranking & Evaluating Alternative Fuels – H2 ∙ BEV ∙ Methanol ∙ CNG Hybrid ∙ Ethanol ∙ Ammonia ∙ Diesel ∙ Biofuels 1) Alternative Fuel Analysis…Will History Repeat Itself?   In 1992 & 2005, the Department of Energy (DOE) created & amended the Energy Policy Act (EPA) that addressed fuel research and tax benefits for vehicle manufacturing. Battery Electric Vehicles (BEV), Hydrogen (H2), Hybrids, Biofuels, Ethanol and Methanol were analyzed in 2005, but vehicle manufacturers supported gasoline hybrid vehicles due to technology and production constraints. Since then, fuel cell technology and global, federal, & state emission guidelines have accelerated innovation and the market is now actively deciding transportation alternatives. 2) Small Vehicle Applications:    BEV have taken a leading role in the small vehicle category with minimal competition from Hydrogen. Hydrogen’s price, lack of infrastructure, and safety concerns highlight the risk associated with new fuel applications; however, Methanol may have an opportunity to fill this role.

W|EPC: Analyzing Energy Project Contract Terms – Risks, Strategies & CompsKey Takeaways:1) Analyzing EPC Risk Avoidance: Comps & Techniques For Investors, Owners, & Contractors    W|EPC analyzed ~$20B of publicly available EPC lump sum turn-key (LSTK) contracts, focusing on sensitive or contentious terms used to allocate risk, manage performance expectations, & establish a framework for third-party indemnification and liquidated damages, etc. (Pages 3, 5-7, & 9-17).  Specific points of emphasis:Investors: Leveraging a project’s future expansion plans to protect ROE and/ maximize options (ROFR) options. (Pages 5, 9-11)Owners: Finding & justifying onerous contract terms as market or on-the-run. Contractors: Avoiding those onerous contract terms.2) Analyzing Notable Risks:    Liability & Indemnity: Existing Facilities can be problematic for Contractors & expose stakeholders. (Pages 5, 9-11)• Performance Guarantees & Damages: Numerous performance guarantees were publicly disclosed (likely inadvertently) that illustrates risks & production, emissions, and/or power consumption liabilities. (Pages 6, 12-14)• Technical Risk Allocation: One project’s subsurface provisions are tighter and limit change orders provisions for differences in soils data. (Pages 7, 15-17)