This story is for CEOs and PE firms who:
- Desire an independent, third-party review to evaluate whether a project is on track and to reassure customers and stakeholders
- Lack a step-by-step plan for reaching project goals
- Are unfamiliar with the supply chain and operational decisions needed for a ramp up
The Challenge
In its fourth engagement with SGS Maine Pointe, a major energy company wanted an independent assessment of a company in its portfolio that was working on CO2 capture technology, focusing on the portfolio company’s first retrofit project. What were the levels of technology readiness (TRL) and manufacturing readiness (MRL) in the portfolio company? What were the risks of the retrofit project in its current state and how could they be mitigated?
The energy company wanted to be sure that the new technology would be able to capture 11.5 million tons of CO2 within 8 years. They felt that an unbiased review by proven experts in assessing commercialization readiness, risk management, design for excellence (DfX), supply chain optimization, and chemical manufacturing would not only give the portfolio company a path forward but reassure stakeholders and customers.
Identifying opportunities and challenges before a final investment decision in new technology
SGS Maine Pointe:
- Assessed the portfolio company’s current stages of research, development, and deployment
- Demonstrated need to align technology, manufacturing, and supply chain readiness
- Noted any risks that would prevent or delay full rate production
- Laid out framework for achieving the goal of capturing 11.5 million tons of carbon dioxide in 8 years
- Documented timelines for operational, supply chain, and organizational milestones, including production planning, supplier qualification, and plant location
- Recommended actions to optimize quality and delivery of raw materials, stakeholder management, and launch of the technology
- Refined playbook that can be used by the energy company to evaluate the viability of other carbon capture businesses before a final investment decision is made
Lessons learned for other executives
- Periodic audits and risk assessments are essential for keeping critical projects on track
- Supply chain and operations issues must be addressed with the same urgency as technology issues
The Results
- Evaluated preparedness to successfully deliver on current on-going carbon capture project
- Identified uncertainties affecting a final investment decision by stakeholders
- Provided playbook for successful ramp-up with timeline for critical decisions, for current and future decarbonization projects
- Measured maturity of manufacturing processes based on manufacturing and technology readiness levels (MRL/TRL)
- Described steps to attain operational readiness and optimize the future supply chain
- Identified key risks and steps to mitigate them, including the scarcity of raw materials
Scaling carbon capture: clearing the critical path of innovation from pilot to full production (CS305)
