Industrial engineering and consulting services encompass a vast range of multidisciplinary expertise. Specialist expertise in different industrial sectors, such as the chemical industry or energy production, is often based on an in-depth understanding of production processes and equipment.
The range of expertise required expands significantly when an industrial-scale investment is taken forward. In addition to the production process, it is necessary to understand the requirements related to utilities, automation, electrification, structures, construction, infrastructure and, in particular, safety. Engineering in the different disciplines must be developed to a sufficient level of detail in line with the target accuracy of the investment cost estimate. Assessing profitability also requires an understanding of the market, at least in terms of raw materials, utilities and products.
The most significant milestone in an investment project is the investment decision. Below, we present the services provided by Sitowise and our partners during the stages preceding the investment decision in industrial investment projects.
Studies
Research and innovation are prerequisites for industrial development. The operating environment is constantly changing, and there is always room to do things better. As technology develops or global circumstances change, unexpected shifts may occur in the market, and companies need to be prepared for them. With nearly two thousand experts and designers, Sitowise can provide technology and market reviews for almost every industrial sector.
Mass and energy balance calculations for industrial processes, as well as estimates of investment costs and operating and maintenance costs, are core competencies of industrial consulting specialists. In our assignments, we engage with equipment suppliers and prepare technical procurement documentation. Techno-economic analyses provide a reliable basis for taking an investment project forward.
If a techno-economic analysis identifies an attractive investment option that is to be taken forward, it is essential to refine, among other things, the investment cost estimates, site plan and permitting plan before the investment decision.
In the process industry and capital-intensive projects, a planning model for the stages preceding the investment decision has gradually evolved, shaped by several companies and research organisations. This model is known as Front-End Loading (FEL). It consists of three stages, the first of which (FEL1) typically corresponds in its level of detail to a techno-economic analysis or pre-feasibility study. Depending on the industrial sector, the resulting investment cost estimate typically has an accuracy of -20%/+50% for established technologies or -50%/+100% for new technologies.
Engineering
In the second stage of the FEL model (FEL2), the selected technical concept is developed further so that binding quotations can be obtained for the main equipment. This stage is often referred to as either pre-engineering or a Feasibility Study. By this stage at the latest, all engineering disciplines should be involved in the project, at minimum to prepare a rough outline of the technical concept within their respective areas of responsibility, which can then be used as the basis for a preliminary cost estimate.
The target accuracy for the overall investment cost estimate is -25%/+25%. At this stage, several main equipment technology alternatives may still be under consideration, but by the end of the stage, the P&I diagrams and layout should be complete so that they can serve as input data for the other engineering disciplines. The project delivery model is also determined at this stage, and the project plan is prepared.
In the third stage (FEL3), the target accuracy for the investment cost estimate is -10%/+10%. This stage is often referred to as basic engineering, during which the documentation required to apply for a building permit is also prepared. The amount of engineering documentation produced increases significantly compared with the previous stages. At the end of this stage, the project has been engineered and permitted, and procurement of the critical elements has progressed far enough for implementation to begin if a positive investment decision is made.
Projects always undergo changes. Before making a positive investment decision and beginning implementation, it is therefore often worth considering whether the basic engineering should be updated once more before work begins. The earlier the engineering stage (FEL1–3), the less expensive it is to redo the work based on updated input data. FEL1 in particular is often carried out several times, for example for several different locations, before moving on to FEL2. FEL2 should be repeated if changes are made to the process or main equipment. Repeating an earlier engineering stage reduces the need for changes in subsequent stages.
Sitowise’s role as an engineering partner for industrial investments
Our clients are typically the leading experts when it comes to the details of their own production processes. At Sitowise, we can bring that process to an industrial scale and adapt it to the operating environment. We understand what the process requires around it. Decades of experience in major infrastructure projects have strengthened our capabilities in successfully delivering large investment projects.
In addition, among our nearly two thousand experts, designers and project management professionals, we also have specialists in industrial processes. My own technical background, for example, is in conventional energy production and industrial-scale circular economy plants.
