RENEW 805
Hydrogen Investment Analysis
his course will provide attendees with a solid grounding in preparing and presenting an investment case for hydrogen taking account of the key technology, business, and organisational issues.
Hydrogen Investment Analysis
COURSE SCHEDULE
| Code | Date | Location | price (€)* |
|---|---|---|---|
| RENEW 805 | 24 - 25 Jul 2024 | Online | 850 |
| RENEW 805 | 21 - 22 Aug 2024 | Oslo | 1990 |
* Prices are subject to VAT and local terms. Ph.D. students, groups (≥ 3 persons) and early bird registrants (8 weeks in advance) are entitled to a DISCOUNT!
COURSE OVERVIEW
You will leave with a clearly explained, business-focused perspective on clean hydrogen investment opportunities. Over three information-packed sessions, this course will provide attendees with a solid grounding in preparing and presenting an investment case for hydrogen taking account of the key technology, business, and organisational issues. The fundamentals of investment analysis will be explained and will be illustrated using practical stories and a basic economic evaluation model. The market opportunities and differing approaches and challenges to delivering hydrogen projects will be discussed with reference to project examples and hands on examination using a basic investment model.
COURSE OUTLINE
2 days
Day 1
Investment case shaping (technical, business, political and organisational context)
Technical context
o Technology risk in clean hydrogen processes
o Comparing the ‘deliverability’ of competing clean hydrogen solutions, in particular ‘green’ vs. ‘blue
o Operating requirements for green and blue clean hydrogen
o Efficiency, equipment life and other factors: from key metrics to business impacts
Commercial context
o Competition and Collaboration – Stakeholders – from Partners to Investors
o Co-ordination – Supply chain – End-to-end value chain considerations, including options for transporting hydrogen
o Consumers – Marketing – Competitive and market entry considerations
o Continuity – Scale-up and Sustainability – Options to enhance revenue and share costs – scaling and multiple business streams
Political context
o Government policy and regulatory provisions
o Market Creation – Price certainty – contract for differences (CfD) ; temporary adjustment payment (TAP)
o Access to cheaper finance – Regulated Asset Base – Grants
o Carbon Credits
o Planning applications – permits
Organisational context
o Strategic alignment
o Project governance process and front end planning
o Project delivery capability
o Project development considerations; including location, access to land, grid connectivity, and supply chain complexity
Fundamentals of Investment Analysis – (Choosing the right Investment Case)
Understanding economic analysis
o Introduction to the key economic indicators NPV, IRR, Payback and Capital Efficiency
o How they are calculated and their use in investment case approval
Day 2
Fundamentals of Investment Analysis – (Choosing the right Investment Case)
Focusing on the assumptions
o Using a ‘score’ model for assumptions – an approach based on the presenters subject matter expertise of preparing and presenting investment cases
o Sanctioning the project – The final investment decision point
Capex – The estimated capital costs of the project
Operating Start-up – The plans for making the project operational
o Revenue – The expected net income stream for the project
o Endurance – The anticipated life-time of the project
Other considerations
o Assessing less tangible and intangible benefits
o Sensitivity and scenario analysis, and identifying the competitive advantage
o Life Cycle – Residual Value and Decommissioning
o Financing options- corporate, investment partners or banks
o Government and regulatory factors – grants, revenue support and investment vehicles
Practical Examples- (preparing and presenting the Investment Case)
Creating an investment model
o Step by step creation of a basic investment model for a clean hydrogen project
o Develop on a simple excel template a worked example
o Adapting the model for specific technical, business and organisational contexts
Preparing the investment analysis
o Adaption of the basic investment model for a variety of purposes; to cover financing alternatives; to cover regulatory requirements – tax incentives and grants
o Test competitiveness by assessing the competitive advantage versus the alternatives and competitors
o Scenario and sensitivity analysis as part of assessing options and risk.
Presenting the investment case
o Presenting the investment case for executive approval as part of the organisations project and investment governance process.
o Assuring the quality of the investment case – what does a good funding request look like?
INSTRUCTOR
Tim Podesta
Tim Podesta is an independent consultant and active as a subject matter expert and advisor in project management and in particular investment analysis, front end planning and benchmarking/assurance; he has deep experience of the oil, gas, petrochemical and energy industries. Tim has extensive experience of developing and delivering impactful training and facilitation during a 35 year career at BP.
Tim has a strong track record of delivering cross cultural programmes in strategy, change management and process improvement and is passionate about professional development; learning and sharing learning with a focus on the netzero agenda and the potential for a hydrogen economy alongside clean electricity
FAQ
DESIGNED FOR
This course is intended for those seeking a time-effective, wide-ranging and independent perspective on the investment case for opportunities within the rapidly growing market for clean hydrogen.
COURSE LEVEL
Intermediate
LEARNING OBJECTIVES
After completing this course, participants will learn:
o Gain a clearer value based understanding of clean hydrogen market opportunities
o Clear explanations of economic value, metrics and investment analysis (in language accessible to technical and business people)
o Discover the key project shaping and assessment issues for hydrogen projects
o Understand the key variables and assumptions that impact the investment case for hydrogen (illustrated using a basic investment model in Excel)
o Takeaway a raised understanding of your investment case with the capability of developing further for your specific context.
REGISTER
Registration is now OPEN!
* Prices are subject to VAT and local terms. Ph.D. students, groups (≥ 3 persons) and early bird registrants (8 weeks in advance) are entitled to a DISCOUNT!
For more details and registration please send email to: register@petro-teach.com
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