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Techno
Economics
MODELLING

Techno Economics

This is a fascinatingly powerful sector of analysis that enables:

  • Risk analysis - determining the Probability Distribution of Returns, rather than relying on a single number.
  • Optimisation- solving the combination of inputs within constraints to optimise a desired outcome.

These situations utilise simulation and optimisation, unlocking powerful possibilities far beyond static assumption driven simple sensitivity and scenario analysis. This level of analysis requires a highly robust financial model and a fresh approach to constructing core logic.

“How can I use this?” - well, you don’t need to be a statistician to appreciate your IRR or Profit analysis as a probability distribution with +/- 95% confidence intervals, including a mean and standard deviation is better than a one-off number. This approach can be readily incorporated within a Vector Financial Model; it’s how we analyse our own project investment opportunities.

For some inspiration; our recent assignments include:

  • Maximising return in integrated energy systems.
  • Minimising down-time in Ammonia production.
  • Minimising carbon intensity in an integrated green fuel production chain.
  • Optimal charging of BESS within a rooftop C&I network.
  • Mapping the multi-variate distribution of returns in a critical minerals project.

Let’s start solving your challenges – Contact Us