An ASX listed company engaged BE&R in March 2022 to model costs for a potential new gas field and renewables development within an African country. The cost modelling needed to be simple, comprehensive and transparent. The study had a short timeline of 6 weeks to target early engagement with the customers and local government. The aim was to develop a model that the Client’s customers could understand and see used in front of them to examine different supply options and so engage them on cost of supply.
Cost modelling of Solar PV and BESS systems were included, and the scope expanded to include a full country business development strategy, incorporating a phased transition to a renewable energy business integrated with other high potential ventures.
The overall cost models developed included the following components: Natural gas trucking model for LNG and CNG options.
Simple understandable analysis is powerful. If the model is not complicated it can be communicated easily, and if it can be easily communicated it is easier to build trust with stakeholders and gain approvals.
Flexibility: Scoping models must be able to accommodate a wide range of ideas. The modelling sophistication lies in quick adaptability, rather than diving deeply into modelling, especially where key inputs remain very uncertain.
Speed of Execution: The most important aspect of the exercise was being able to deliver a model in time for the client to use with their planned engagements with customers.
In conjunction with the client, BE&R explored the wider context of the country development against current local and global policy. A strategy was developed and in now being implemented encompassing: