This is the second Lessons Learnt report and discusses the financial impacts on the project due to the COVID-19 pandemic.
Report extract
Renergi Pty Ltd has developed a patented, award-winning pyrolysis technology, which is termed as “grinding pyrolysis” technology. The technical feasibility of this patented technology has previously been demonstrated with a 100 kg/hr demonstration plant funded by the ARENA and the WA state government.
The ultimate aim of this project is to design, build, commission and operate a pre-commercial demonstration plant in Collie, WA, to convert municipal solid wastes, other wastes and forestry/agricultural residue into three main commercial products – bio-oil, biochar and wood vinegar.
This project is carried out at the time of prolonged COVID-19 pandemic. Herein we report our lessons learnt so far that the COVID-19 pandemic is causing price increases of key supplies such as steel required by the project. The Consumer Price Index (CPI) is not necessarily an accurate measure of the increases in the price of such raw materials as steel. The COVID-19 pandemic has also caused major problems in global logistics.
The combined impacts of raw material price increases and worsening logistics can threaten the financial feasibility of what has been a well-budgeted project. The COVID-19 pandemic has much more impacts than just the delay in local project activities.
