Managing Risk

Peregrine Energy drew on its expertise and experience to develop a risk mitigation plan that first set out to identify the project objectives, the project scope, schedule, estimated budget, etc. Peregrine Energy's risk management plan considers the probability of a certain risk, assessment of the impact, a plan for mitigating the various consequences, and how the risk is shared among the various team members. Peregrine assesses its risk for developing biomass-fired generating facilities as follows:

  •  Technology risk is low using proven technologies
  • Construction risk is mitigated through proper contractual structure
  • Operational risk is low considering our experience and team member's experience as well as the conservative plant design
  • Revenue risk is low with a long-term power purchase agreement with an investment-grade utility (and possibly a steam host)
  • Fuel availability risk is low with proper site selection
  • Fuel cost risk is mitigated with proper power purchase structuring
  • Catastrophic plant failure is properly insured
  • Downside protection through take-or-pay off-takes
  • Upside potential with opportunity fuels and beneficial use for ash disposal