Template to support due diligence of Anaerobic Digestion

projects by financial organisations

[AGF001-001]
Template to support due diligence of anaerobic digestion projects by financial organisations

What this template is for

This template is designed to make it easier for you, the project developer, to provide the relevant information on your AD project to a bank or
other potential investor.

Investors require this information in order that they can undertake due diligence of your project, this is the process by which they assess the
risks and benefits of each project. Some investors may not be as familiar with AD projects as other renewable energy technologies (like wind
or solar power), so this template is also intended to help them understand what type of information is available.

The template is designed to highlight the type, quality and quantity of information you need to provide on each area of the project. The
template is designed to sit alongside your detailed Business Plan. Each section of the template asks you to say where in your business plan
the full and detailed information can be found.

Your Business Plan

The full business plan for your project is what will help the investors gain a thorough knowledge of your proposal. Investors need a business
plan to help them see if the type of investment fits within their portfolio, to enable them to assess the degree of risk involved and to identify any
ways in which risks may be mitigated. Their assessment of the risk may not only affect the decision as to whether they wish to invest but may
also determine the interest rate on any loan.

The business plan should provide details of how the project will be developed and managed, when certain stages will happen and how the
finances will be managed. You should always subject your forecasts to sensitivity analyses (e.g. if income was 5% higher or lower than
expected, how would this affect income streams?)

The level of detail required in a business plan will vary depending upon the size of the project. This template provides a guide as to the level of
detail that is required, however each potential investor will have different needs and may well ask for more information on more items than are
covered by this template.

Your business plan should also be updated as new information comes to light, including once the project is up and running as this will help in
maintaining good management and may well provide useful information should you wish to pursue another development in the future (for
example, allowing an assessment of whether actual running costs differed from what was expected at the beginning of a project and if so, by
how much).

What happens during due diligence

Investment and credit risk managers typically look at a wide range of potential proposals to include in their investment portfolio and it is their
job to identify investment projects that:

a) fit with their objectives and priorities (including the length of the repayment period);
b) are likely to be of value (does it create a return and/or produce other impacts); and
c) compare well with other potential projects.

In order to do this, they will:

a) Review your proposal and supplementary information to assess viability and risks, including how these will be managed or
mitigated
b) Undertake additional research, ask colleagues and/or experts in field and seek other available information relevant to the project
c) Hold interviews with organisation and management
d) Follow up interviews and research / probe areas of concern
e) Analyse the findings – what are the flagged areas of concern and what risk do they pose to the project,( are there any 'deal
breakers'?) and consider mitigation.
f) Synthesise the information and present for decision making.
Information for developers
‘How to use this template’ tab

The template sets out the information required at each key stage in the lifecycle of the project development process and is intended to help you
gather information in advance of submitting information to an investor.
The template sets out a range of questions that you need to complete. Some of the responses are automatically linked to other parts of the template.

PLEASE ENSURE THAT ANSWERS ARE INPUT INTO THE WHITE BOXES ONLY.

Please also note that many of the questions have drop-down menus from which an answer is to be chosen. There is a prompt where this is the case.

Try and complete the sheets sequentially and provide your best estimates of information. Details of the source of information and an explanation of
how any estimates have been provided should be described in your business plan.

Every project is likely to be different so you are free to vary the level of information as appropriate to your situation. The template is intended to
provide an indication of the typical extent of information that may be required by investors but it is possible that they will require more or less
information to suit their own interests.
The template will not give an indication as to whether a request will be successful nor will it guarantee a particular outcome.

Disclaimers
This template has been developed as a means for potential developers of AD plant to provide the information required for due diligenceand
investment decision processes of potential investors. All the information provided in this template has been supplied by the prospectivedeveloper of
the AD plant.

This template has been produced for guidance purposes only and does not constitute an exhaustive list of the information that any prospective
funder may require in a business plan. Therefore, the user of this template must seek advice from the prospective funder as to the full extent of the
information they may require. This template does not form part of a funder's assessment process nor does it constitute any commitment on the part
of a potential funder to provide financial support for the proposed project. Furthermore, this template does not constitute an assessment of the
financial viability of any proposed project. If the user has any concerns regarding the financial viability of any proposed project independent financial
advice must be sought.

The Anaerobic Digestion and Biogas Association (ADBA), The Waste & Resources Action Programme (WRAP), Entec UK Limited, their employees
and agents, will not be responsible, so far as is lawfully permitted, for any loss howsoever arising, which may result from the use of, reliance on or
the alteration of, this template by the user.
Assessment questions

If any terms are unfamiliar or you are uncertain how to

complete a box, look at the notes tab of the spreadsheet

Question Please answer in white boxes only Location of information in

your business plan (in white
boxes with dashed border)

1. About you - the applicant

1.1 Name of person completing form

1.2 Address for correspondence

1.3 Email address

1.4 Daytime telephone number
1.5 Mobile telephone number

2. Context - the background to the proposal

2.1 Why are you seeking funding (business justification)?

3. Organisation - about your business

3.1 Broadly, what kind of business do you run?

3.2 If other, please specify

3.3 Please provide a general description of your business,

including basic history and nature of current principal
operations.

3.4 Why is AD being considered for your business?

3.5 Would you say that AD is a core element of your business?

Please provide the locations of other AD facilities under your

ownership/operation

3.6 If the answer to 3.5 is no, would you consider a move to AD

provision a natural transition for your business (and if so, why)?

3.7 Do you (or your colleagues) have any experience of

developing and / or running an AD process plant?

3.8 If your answer to 3.7 is yes, please provide a description of BFD

your experience. Where possible please provide the location
of any AD facilities in which you were involved that have been
successfully delivered and your role in these projects.

3.9 If your answer to 3.7 is no, what experience do you have

that you think is useful in the building, running and
management of an AD facility?

3.10 Have you project managed a physical development before

(of any type)?

3.11 If the answer to 3.10 is yes, please describe your

experience (not including any AD experience)

END OF SECTION
4. The Site Please answer in white boxes only

4.1 Location of proposal

Coordinates:
Northing
Easting

Area of site

4.2 Please select a term that best describes the context of the Within larger energy production site
scheme

4.3 Do you own the site? Yes

4.4 Is the site leasehold or freehold? Leasehold

4.5 If leasehold, how much is the rent (annually)?

4.6 What is the term of the lease?

4.7 What is the current use of the site?

4.8 What were the previous uses of the site?

4.9 To your knowledge, is the site contaminated? Yes

4.10 If you answered yes to 4.9, do you know in what way the
site is contaminated?

4.11 Are there any pieces of land in a different ownership which

are needed to:
a) Enable direct construction of the AD plant
b) Gain access to the site when it is running
c) Install utilities being provided to/from the site
d) For any other purpose

4.12 If you answered yes to any of the questions in 4.11, do

you know who owns all relevant areas of land?

4.13 Please provide details of the landowners. If any areas are

of unknown ownership, these should also be clearly identified.

4.14 Have any arrangements been made to secure entry over

the land in question?

4.15 If the answer to 4.14 is yes, please provide details of the

arrangement

4.16 Have you provided written information regarding the

arrangements with your submission to the investor?

4.17 Have you carried out a Geotechnical survey of ground

conditions?
 4.18 If the answer to 4.17 is yes, did it identify the need for
piling or any additional ground works? Please provide details if
so.

4.19 If the project involves exporting energy to the grid, have

you checked that the grid operator has capacity, and what the
cost of connection will be?

5. Regulatory Requirements
Planning
5.1 Is the site located in:
a) Open countryside
b) Greenbelt
c) A conservation area
d) An area subject to any other statutory designation (SSSI,
AONB, etc.)

5.2 Have you gained planning permission for the development?

5.3 Please provide the permission reference number

5.4 Are there any conditions attached to the planning

permission?

Please ensure a copy of the planning permission (and all

conditions) is provided with your submission. Please state
where in your submission this information is provided.
Environmental Permitting

5.5 Are the premises used for agriculture? Yes

If yes complete questions 5.6 to 5.9

5.6 What type of feedstock is to be used?

5.7 What is the net rated thermal input of the biogas burner?

5.8 How long will the feedstock remain in the AD plant?

5.9 How much material (in cubic metres) will be stored or

treated at any one time?

Exempt

5.10 Are the premises NOT used for agriculture? Agriculture

If Agriculture go to question 5.15

5.11 What type of feedstock is to be used?

5.12 What is the net rated thermal input of the biogas burner?

5.13 How long will the feedstock remain in the AD plant?

5.14 How much material (in cubic metres) will be stored or

treated at any one time?

Not Exempt

If the proposed development is not exempt under either of

the above, a permit will be required.

5.15 Have you obtained any Environmental Permits for the site
to date?

5.16 If yes, which permit have you obtained?

5.17 Are there any limitations associated with the permit?

5.18 If yes, please provide a summary of any key constraints /

limitations.

Please ensure a copy of the Environmental Permit (and all

limitations) is provided with your submission. Please state
where in your submission this information is provided.

5.19 Do you consider there to be any particular environmental

risks associated with this development?

5.20 If yes, please provide details

5.21 Have you ever been investigated or prosecuted for

environmental breaches or non-compliance?

5.22 If so, please provide details

5.23 Please provide the costs incurred to date (including
gaining planning permission, environmental permitting,
consultants, etc.). Please state where in your submission
details of these costs may be found.

5.24 Do your operating plans include compliance with any

relevant regulations, for example, ABP, PAS 110? If so, please
state where in your submission further details may be found.

END OF SECTION
Location of information in
your business plan (in white
boxes with dashed border)
6. Project Build / Design Please answer in white boxes only

6.1 Please provide details of the core development team, i.e.

those principally responsible for the delivery of the project.
(Note: it would be expected that CVs be provided within the
business plan document detailing their experience in the field)

6.2 What companies have been involved in the design and

development of the proposal?

6.3 What was their involvement?

6.4 What ongoing support is available from these companies?

6.5 Please provide their details

6.6 Have you any sponsors for the proposal?

6.7 If yes, please provide the nature of their involvement and

their details

6.8 Who are the proposed suppliers of the plant / equipment?

Please also provide their details and which elements they are
to supply.

6.9 Who will undertake the groundworks?

6.10 Have you undertaken any checks of these suppliers?

6.11 Are there warranties / guarantees provided for the plant /

equipment?

6.12 a) Is an overall process guarantee offered by a single No

company (i.e. a turnkey "wrap")?

Multicontract Project
Where a Multicontract approach is adopted, identify how
process risks are mitigated by other guarantees in the
sections below

6.13 Please provide details of the warranties / guarantees and

state where they are located in your submission.

6.14 Have the contracts been signed?

6.15 Have you provided copies of the contracts (even if not

signed) and state where in your submission they are located

6.16 Have you considered the potential contractual/delivery

risks?

6.17 If yes, please state how these have been considered

6.18 Have any other specialists been involved in the

development of the proposal?

6.19 If yes, please state how they've been involved and provide
their details

6.20 Have you provided specifications and drawings in your

submission? Please state where in your submission these are
located. (See notes tab)

6.21 Have you developed a business case for the

development?
This should present the financial overview for the proposal and
clearly identify/justify any assumptions made (eg for electricity
pricing, operating costs, maintenance costs) through the life of
the plant.

6.22 Please state who will manage the building of the AD plant

6.23 If this is not yourself (or "a mixture of the two"), please
provide details of the project manager

6.24 Have you obtained a relevant connection agreement(s)?

6.25 If yes, have you provided a copy of the agreement(s)?

Please state where in your submission it may be located

6.26 If no or N/A, please provide further details as to how this

may addressed (or why its not applicable) and state where in
your submission this information may be found

6.27 Have you obtained quotations for the relevant insurance

required during the project's development? If so, please state
where in your submission copies may be found.
6.28 Do you expect to receive an operating manual from the
plant provider to operate the plant?

END OF SECTION
Location of information in
your business plan (in white
boxes with dashed border)
7. Development Finances
Please answer in white boxes only

Please insert any financial values as numbers only (and in pounds sterling)

7.1 Who has provided / collated the build costs of the proposed
development?

7.2 Please provide their details

7.3 Please provide details of the costs of the development:

Note: These costs should include the costs of any additional infrastructure of
the project, further breakdown of which shall be required under "Project
Outputs".

i. Development Costs
ii. Site Purchase Costs
iii. Planning Costs
iv. Permitting Costs
v. Utility Connections (incl. grid connections)
vi. Project Management Costs
vii. Ground Condition Cost/allowance
viii. Architect Costs
ix. Civil and Structural Costs
x. Mechanical & Electrical Costs
xi. Mobile equipment costs
xii. Commissioning and Spares
xiii. Any legal and / or professional services associated with the development of
the plant

xiv. Any other costs associated with the plant (access roads, etc.)

£ -

7.4 Are any aspects of the plant NOT subject to a fixed price
contract?

7.5 Have you assessed the credit worthiness and organisational

capability of your preferred suppliers to provide the items
required for the development of the plant? If so, please provide
details in your submission and state where these details are
located.

7.6 Are you making any purchases from outside the UK?

7.7 If so, what exchange assumptions have you made? Please

state where in your submission details of these assumptions
may be found.

7.8 What are the anticipated costs of replacement parts once

the warranties / guarantees expire? Please provide details in
your submission on assumptions and state where these details
are located.

7.9 What is the life expectancy of the plant and equipment?

7.10 Please provide details as to what will definitely require

replacement over the project's lifetime in your submission and
state where this information is located.

7.11 Have you included a level of contingency in your

development costs for unforeseen items?

7.12 If so, please provide the level of this contingency and state
where details may be found in your submission.

7.13 Has a sensitivity test been applied to these costs?

7.14 If yes, please state how (what the underlying assumptions

are)
7.15 Please provide a summary of this analysis and where in
your submission this information is located
7.16 What ongoing UK support is available from manufacturers
& installers?

7.17 What do you estimate is the overall value (net present

value) of the development?

7.18 Please state over what project lifetime this value has been
calculated?

7.19 Are feed in tariffs or ROCs expected to form part of the

income stream arising from the plant?

7.20 If so, what proportion of the annual income stream is

expected to come from the feed in tariffs or ROCs?

7.21 Please provide details of the arrangements for the feed in

tariffs or ROCs (are they guaranteed, if so for what terms, are
there any get out/break clauses, etc.). Please state where in
your submission these details are located.

7.22 How much do you need to borrow?

7.23 How much do you expect to repay as interest on the loan

(the total amount)?

7.24 What interest rate did you use to calculate this?

7.25 How long (in years) do you want to repay the loan?

7.26 How do you expect to repay?

7.27 Is the loan to be secured on other assets?

7.28 If so, please provide details and state where in your 0

submission these details are located. 0

7.29 Please identify who will have an equity stake in the project,
and detail the proportion of equity that each partner will take.

7.30 Do you envisage any sinking funds being associated with

the plant?

7.31 If so, how much would be put into the fund annually?

7.32 How often do you expect to draw on the sinking fund?

7.33 What do you expect the annual net income of the proposal
to be (after tax)?

7.34 What do you calculate is the annual level of depreciation

(as an amount, not a percentage)?

7.35 What do you expect the value of other non-cash or

discretionary items to be annually?

7.36 Has a sensitivity analysis been applied to these figures

(7.33 - 7.35)

7.37 If yes, please state how (what the underlying assumptions

are)

7.38 Is this the only source of borrowing for the project?

7.39 If no, please state the other sources of funds i.)

ii.)
 iii.)

7.40 Please provide their details i.)

ii.)
iii.)

7.41 Are you expecting to receive any type of grant or

Government aid (other than ROCs, FITs)?

7.42 If so, how much (and please provide copies of the

agreement(s) and state where in your submission these may be
found.

7.43 Are there any arrangement or other upfront fees required to

secure the loan(s)?

7.44 If so, please provide further details in your submission and

state where in your submission these details may be found.
8. Development risk

The developer should have undertaken a risk assessment, the results of which should be summarised in this section.

8.1 Have you considered what the risks associated with the
developing the AD plant are?

8.2 Please identify what are considered to be the most

significant risks to the project

8.3 Have you thought of means by which these risks can be

minimised?

8.4 Please briefly describe these mitigation measures and

indicate where the risk assessment is located.

8.5 Has anybody provided you with help regarding possible

risks (e.g. a Quantity Surveyor)?

8.6 Please provide their details

8.7 Please state where in your submission further details of risk

mitigation can be found

9. Financial Details

9.1 Have your provided accounts of your business to date in

your submission? Please state where in your submission these
can be found and whether they are audited or not.

9.2 Have you provided forecasts of incomes and expenditure for

the development? Please state where in your submission this
information can be found

9.3 Have you considered the impact of inflation or movements in

price on your construction costs?

9.4 If so, what assumptions have you made (and please state
where further details may be found in your submission)?

9.5 Has a sensitivity analysis been applied to these forecasts?

9.6 If yes, please state how (what the underlying assumptions

are).

9.7 Please state what the results of this analysis are and where
in your submission this information is located

9.8 What is the estimated Project Rate of Return? Please also

state where in your submission details of how the rate of return
has been calculated can be found (see notes)

9.9 What would be your company's normal anticipated rate of

return for a capital investment?
9.10 If there are different equity partners, what are the profit
sharing arrangements?

END OF SECTION
Location of information in
your business plan (in white
boxes with dashed border)
10. Managing the Plant Please answer in white boxes only

10.1 Who will manage the plant?

10.2 How is the management of the plant to be structured?

10.3 Please provide further details of the experience of the

management team in the operation of facilities such as that
proposed.

10.4 If the plant is to be provided / managed by a consortium of

companies, what is the structure of the consortium?

10.5 If the AD plant will not be your sole concern, what will your
other business activities consist of?

10.6 On a weekly basis, in terms of hours, how much time do

you expect to spend running your business (all aspects of it)?

10.7 On a weekly basis, in terms of hours, how much time do

you expect to spend running the AD plant?

11. Running the AD Plant

Feedstocks
11.1 Please confirm that you have detailed the feedstock
materials for the plant in section 5?

11.2 Have you developed a feedstock strategy?

11.3 If yes, provide a brief summary and state where in your

submission this information is located

11.4 Did you obtain specific advice on feedstock and its

compatibility with the technology you've chosen?

11.5 Who will manage the biological assessments for the plant
in the future?

11.6 Have you considered alternative feedstock sources for the

materials referred to in Section 5 (and 11.1) in relation to the
plants ability to process and security of supply?

11.7 Have you considered any additional haulage

arrangements and costs associated with delivery of feedstock?
If yes, please state where in your submissions further details
may be found.

11.8 Have you considered the impact of inflation or movements

in price on feedstock, operating costs, electricity prices and
disposal costs?

11.9 If so, what assumptions have been made?

11.10 Please state where in your submission further details and

evidence relating to questions 11.7 and 11.8 are located
11.11 Please list your key suppliers, the anticipated tonnages
being supplied and the material to be supplied

11.12 Please give details of the security of tenure on their land

of anyone growing feedstock to supply to your plant

11.13 Please provide their details

11. Running the AD Plant (continued)

11.14 Are any other suppliers to be used?

11.15 Please provide their details

11.16 Have you assessed the credit worthiness of the

suppliers?

11.17 Identify the proportion of waste feedstock that has been

secured under heads of terms / contract for a term of 5 years or
more. (more detail on all contracts should be provided and
referenced)

11.18 Have you provided copies of these contracts (or heads of

terms)? Please state where in your submission they are located

11.19 When do you expect these contracts to be signed?

11.20 Have you any warranties with these suppliers in relation

to: - ?
a) feedstock quality

b) feedstock quantity (i.e. guaranteed minimum tonnage / put

or pay arrangements)
Please provide further information within your submission.

Health and Safety

11.21 Do you / the people operating the plant have relevant
training in Health and Safety and other regulatory
requirements? If so, please state where in your submission
further details can be located.

11.22 Have you developed health and safety policies/plans in

association with running the AD facility?

11.23 If yes, please provide copies and state where in your

submission they can be located

11.24 Have you developed an environmental management

strategy?

11.25 If yes, please provide a copy and state where in your

submission it can be located

END OF SECTION
Location of information in
your business plan (in white
boxes with dashed border)
12. Output Materials Please answer in white boxes only

12.1 Have you developed a strategy for the recovery / use of all
output materials?

12.2 If yes, please provide a summary and state where in your

submission the strategy can be located

13. Digestate
13.1 Please state the nature of any equipment that has been
installed for the purpose of addressing any potential physical
contamination of the output products.

13.2 What are your estimates of the costs of using the

digestate in accordance with your plans?

13.3 Please identify the level of security of the disposal to land

route by indicating the proportion of digestate that can be
spread to land under heads of terms / contract for a term of 5
years or more. (more detail on all agreements / contracts
should be provided and referenced)

13.4 Have you obtained the necessary licenses for spreading

to land? If so, please provide copies and state where they are
located in your submission.

13.5 Are you intending to apply for certification under PAS110 /

QP? (please provide details)

13.6 Have you considered any alternatives to disposal to land?

Please ensure that the following sections for alternative uses

are completed

14. Alternative use of Residues / Product Manufacture

No sections required for completion
14.1 What is the end product(s) that are being manufactured?

14.2 If the product already exists, are the residues replacing

an alternative input material to the product? If so, identify what
material and the proportions being replaced.

14.3 Provide a summary of the market that is being targeted

by this product(s), including market size, the anticipated market
share, and how the product is being targeted at the market to
achieve this. Information on relative pricing should also be
included and an overview of marketing strategy (i.e. how the
product will get to market) should be detailed in the business
plan.

14.4 What proportion of digestate produced by the plant are

intended to be absorbed by this route?

14.5 What are the intended annual revenues to the project of

this route

END OF SECTION
Location of information in
your business plan (in white
boxes with dashed border)
15. Gas Utilisation - Combined Heat and Power (CHP) Please answer in white boxes only

15.1 Please summarise the additional plant and equipment

that is required to be installed in order to achieve this output
route

15.2 What is the capital cost that has been included within the
cost breakdown (as provided in Section 7.3) for the CHP
elements of the plant and equipment.

15.3 Please detail the nature of the connection agreements

that are in place for the facility. (also referenced in 6.22)

15.4 Please detail the terms of the relevant Power Purchase

Agreement (PPA) or Energy Supply Agreement (ESA) as
applicable.

15.5 What is the total annual amount of electricity generated at

the site (MWh / annum)?

15.6 How much power is consumed by the site to power

auxiliaries (MWh / annum)?

15.7 What are the assumed annual revenues from energy

sales (excluding any payments under the any subsidy or
incentive scheme such as ROCs or RHI). Note that these
figures should have been included in Part 9.2.

15.8 What assumptions have been made in relation to

additional revenue from subsidy or incentive schemes such as
ROCs or RHI. Note that these figures should have been
included in Part 9.2.

15.9 To what quality requirements / regulation will your plant

operate and has this performance been guaranteed by the
plant supplier?

16. Gas Utilisation - Gas to Grid

16.1 Please summarise the additional plant and equipment

that is required to be installed in order to achieve this output
route

16.2 What is the capital cost that has been included within the
cost breakdown (as provided in Section 7.3) for the purposes of
providing gas to grid capability.

16.3 Please detail the nature of the connection agreements

that are in place for the facility. (also referenced in 6.22)

16.4 Please detail the terms of the relevant Energy Supply

Agreement (ESA) as applicable.

16.5 Assumed annual revenues from gas sales (excluding any

payments under the Renewable Heat Incentive - RHI)

16.6 What assumptions have been made in relation to

additional revenue from payments under the RHI

16.7 To what quality requirements / regulation will your plant

operate and has this performance been guaranteed by the
plant supplier?

17. Gas Utilisation - Vehicle Fuelling

17.1 Please summarise the additional plant and equipment
that is required to be installed in order to achieve this output
route

17.2 What is the capital cost that has been included within the
cost breakdown (as provided in Section 7.3) for the purposes of
providing vehicle fuelling capability.
17.3 To what quality requirements / regulation will your plant
operate and has this performance been guaranteed by the
plant supplier?

17.4 Assumed annual revenues from gas sales (excluding any

payments under the Renewable Heat Incentive - RHI)

17.5 What assumptions have been made in relation to

additional revenue from payments under the RHI
18. Heat Use from Plant

18.1 Please provide details of the principal heat consumers to

be supplied under this scenario (including potential heat
demand, distance from the plant and nature of the business
being supplied)

18.2 Please provide an overview of the typical way in which

heat is used for the consumers identified above.

18.3 Annual heat to be supplied - please indicate the

anticipated annual heat demand in MWh.

18.4 Have medium / long term contracts (i.e. 5 years +) been

agreed with these energy consumers for this amount of heat to
be supplied? Please provide further details.

18.5 Please summarise the additional plant and equipment

that is required to be installed in order to achieve this output
route.

18.6 What is the capital cost that has been included within the
cost breakdown (as provided in Section 7.3) for the purposes of
providing this heat supply to the consumers.

18.7 What contribution to the operating costs are directly

related to the provision of this equipment?

18.8 What unit cost for supply of heat to consumers (excluding

Renewable Heat Incentives - RHI) has been assumed (p/kWh)

18.9 Assumed annual revenues from heat sales (excluding

any payments under the RHI)

18.10 What assumptions have been made in relation to

additional revenue from payments under the RHI

END OF SECTION
Location of information in
your business plan (in white
boxes with dashed border)
Information checklist
Please answer the following questions. This is intended to be a list that can be printed off as a cover note for postal submission of
documents (registered first class post).

The following list indicates documents and evidence required for the due diligence review, note that different documents might be
required depending on the stage and specific nature of the project. Check the box to the left to indicate that you have a copy of
the document in your submission.

Details about you and your business organisation

Status based Ready to Document / evidence

on response attach?
0 Details of organisation and ownership
Available Yes List of owners / board members / directors
Available Yes Name and description of personal
Available Yes Financial reports
Pending No Annual financial statements from end of most recent financial year (audited if available)
Available Yes Auditors letters to management
Pending No Interim balance sheet and income statement
Available Yes Budget for current financial year (with year to date figures)
N/A N/A Current tax forms (* need to check what is required – tax code / company number)

Details about project

Available Yes Location map

Available Yes Design drawings illustrating plant and key grid and infrastructure connections (as appropriate / available)
Pending No List of components
Available Yes Details of funding applications made to other organisations
Available Yes A list of anticipated project funding (committed, secured, pending)
Pending No Planning documents
Available Yes Current business plan (if available)
Available Yes Organisation chart illustrating roles and responsibilities
Available Yes Details / CVs of key staff
N/A N/A Any marketing or promotional documents prepared or available

Summary sheet
Spreadsheet last updated: 3/29/2019

Business Justification
0

Financial data
Amount sought 0 Working capital 0

L/V #DIV/0!

DSC #DIV/0!

Key risks
0
Notes

Notes on questions in assessment questionnaire

3.3 This includes when the business started, the primary activity of the business, etc.

4.2 The context relates to the land and area surrounding the proposed plant; for example, is it / will it be housing or farmland?

4.4 Leasehold is a form of property tenure where one party buys the right to occupy land or a building for a given length of time.
A leasehold thus differs from a freehold where the ownership of a property is purchased outright and thereafter held for an
indeterminate length of time.

4.9 What constitutes contamination is at least partly dependent upon the intended end use of a site, however in this instance,
this may be any substance on or in the site that will require being dealt with in some way (e.g. removal) prior to
development or that may pose a risk to another receptor (person, land, land use, etc.) during the operation of the AD plant
and that has arisen as a result of another land use or through natural processes (e.g. radon).

5.1 Please note that Green Belt land is a specific allocation within an adopted planning development plan (available from your
local planning authority) and does not mean general open countryside. SSSI = Site of Special Scientific Interest. AONB =
Area of Outstanding Natural Beauty. All these designations and any others should be shown in the local planning authority's
development plan for the area (the development plan will include local plans, unitary development plans and local
development frameworks.

5.9 1 cubic foot = 0.0283168 cubic metres

5.10 For more information as to environmental permitting, please go to:

http://www.environment-agency.gov.uk/static/documents/Leisure/AD_of_Agr_MS_v2_-_Final.pdf

6.4 This would include anyone providing in-kind support (advice, etc. free of charge) as well as financial support.

6.18 Drawings should include layouts, elevations, process flow diagrams and mass/energy balances. Specifications of the plant
as tendered should also be included; as a minimum this should detail the scope of works, basis of design and levels of
expected and guaranteed performance. the conditions of contract to be used should also be noted.

7.13 Sensitivity testing involves making assumptions regarding the inputs into the finances, e.g. what if the cost of a piece of
equipment increases by 5%, then what would be the overall impact on the total costs and therefore the expected income
stream gained from the plant? In any such testing, the assumptions that have been made should be explicitly stated.

7.19 For information regarding feed in tariffs, see:

http://www.fitariffs.co.uk/FITs/
For information regarding ROCs, see:
http://www.ofgem.gov.uk/Sustainability/Environment/RenewablObl/Pages/RenewablObl.aspx

7.30 Sinking funds are separate funds (usually deposited in a bank account) whereby some of the income earned from a
development is put into the fund to cover expected future maintenance costs.

7.34 The gradual decline in the financial value of property used to produce income due to its increasing age and eventual
obsolescence, which is measured by a formula that takes into account these factors in addition to the cost of the property
and its estimated useful life. There are a number of methods of calculating depreciation however a commonly used method
(by way of example only) is the straight line method. This is:
(Cost of Asset - Residual Value)/Expected useful life of Asset (in years)
E.g. if a piece of equipment costs £20,000 and is expected to last for 10 years after which it will have a scrap value of
£2,000 then the annual depreciation may be calculated as (£20,000 - £2,000)/10 = £1,800. If there would be no scrap
value, then the annual depreciation would be £20,000/10 = £2,000.

9.8 The Rate of Return is the amount of income arising from an investment minus the amount invested expressed as a
percentage of the amount invested. There are a number of ways in which the rate of return can be calculated (at least
partly depending upon whether the rate of return is calculated over a single time period (e.g. one year) or a number of time
periods. The simplest way to calculate a rate of return is take the value of the initial investment away from the final value of
the investment and divide this by the value of the initial investment;
Rate of Return = (Final value of AD Plant - Initial investment)/Initial investment
It should be noted that this is the arithmetic rate of return and is used to calculate a rate of return over one time period.

12.4 If your project assumes an income from the digestate this should be explained in the business plan.
User Comments
This free form sheet is intended for the user to make any notes through the completion of their data.
For example, a Revisions table may be useful to track versions of the sheet.