Due Diligence on Renewable Energy Generation and Green Hydrogen to Ammonia Production Plant

Client: Australian Energy Company

Overview

The production of green energy is a key element of the global transition path to Net Zero.  Only a few large scale green hydrogen projects have commenced construction or production in recent years.  The performance of these projects is being keenly observed by the industry leaders, investors and stakeholders.

Scope

BE&R was engaged to review the engineering performance for the design, fabrication and construction of a green hydrogen project during the detailed design and early construction phase.  We reviewed the engineering management systems, deliverables planned vs complete, and the capability vs actual performance of the lead design engineer and sub-contracted engineering firms for package design and construction.

Results

A succinct timely report was made to the Operator client, quantifying and qualifying the gaps in engineering performance.  Key issues for the project concerned:

• Project organisation and procedures and which teams were across or not across these.
• Frequency and quality of project communications and reporting
• Experience of resources and their time on the project.

Insights were gained into the specific difficulties in designing and delivering new energy projects. These challenges include:

• Developing new supply lines into the country
• Technology development
• Lack of experienced resources in country, organisations and individuals
• Low margins adding to higher cost pressures
• Working with stakeholders with differing objectives