Due Diligence of New Technologies
What does due diligence entail?
Carbon LCA Certified provides technology evaluation assessments to businesses and individual investors that wish to invest in new renewable energy and materials technologies. Evaluations could also be conducted for technology developers seeking third party validation of their technology. These in-depth professional technology evaluations are an integral part of the due diligence processes taking place prior to investment in new technologies. Technology evaluations typically comprise of three key components:
1. Technology assessments
o The science of the technology, its viability and verification of technology developer claims or otherwise.
o IP position, strength and potential.
o The stage in the technology lifecycle, from an idea to commercialisation.
o Development challenges in reaching commercial stage:
i. Development work plan and timeline
ii. Resources, skills and risks
iii. Cashflow estimates
2. Sustainability and environmental impacts
o Sustainability review.
o Life Cycle Assessment conducted in compliance with the ISO14040 series standards using SimaPro, a leading LCA software.
i. Overall energy and mass balance
ii. Full Life Cycle Inventory of the process
o LCA based environmental impacts assessments including Global Warming Potential, Abiotic Depletion, Human Toxicity, Photochemical Oxidation, Acidification Potential, Eutrophication Potential and Embodied Energy.
3. Assessment of economic viability
The results from the technology and Life Cycle Inventories assessments are then used to develop models that will assess potential economic viability and performance of the new technology. The challenge is dealing with uncertainties associated with inputs and outputs of new technologies. We use Monte Carlo probabilistic mathematical modelling to account for model input uncertainties and predict key economic measures, such as ROI and NPV. These are presented as a range of probable outcomes, not a single point value.
