It’s all about the right balance
Over the last twenty years, in our global interaction with financiers and corporates on the one side and farmers, ‘green entrepreneurs’ and academics on the other, we often heard the term ‘paradigm shift’; A request to change the thinking or practices in the cleantech investment space, but “It is not that simple”! Essentially rooted in agriculture, the financing of biobased energy or bio-renewable chemicals project need a different and more comprehensive approach (understanding) that is inclusive of all elements along the value chain: biomass harvesting, supply and storage – conversion – product marketing & sale.
To support conventional investment risk assessments, our team has developed The-Right-Balance™ methodology, which typically assesses the following ‘balances’:
Cost of biomass supply (transport cost) vs. Manpower/automation costs.
Amount of biomass removed from the fields vs. Soil (and plant) health.
Bagasse/Fibre handling characteristics vs. Equipment sizes/costs.
High yields vs. Best/optimal mass and energy balance (= operating costs).
Carbon Footprint vs. Most economical equipment/process choices.
Innovative solutions vs. Investment (risks).
Economy of Scale vs. Economy of Numbers.
Profit vs. Poverty alleviation
Etc. vs. etc.