Background: SK E&C hired Orchid to lead commercial and legal due diligence on the potential acquisition of 100% membership interests in two greenfield combined cycle power plants in ERCOT.
Sample Assignment: Power (SK E&C)
Orchid's Role:
- Investigated the project, development status, and management team track record
- Performed documentary due diligence of project contracts (land, EPC, water, permits/licenses, interconnection/transmission), joint development
- Reviewed tax and corporate records, consents, resolutions, sources and uses of funds, investment documents
- Provided an overview of the US power market and ERCOT zonal and nodal markets, revenue hedging options, financial model
- Provided an overview of the US natural gas market with emphasis on supply for project
- Reviewed the project gas sourcing plan and provided feedback on options to procure gas
- Reviewed the power marketing plan and provided input on hedging and power sales options
Orchid's Deliverables:
- Feasibility report on development company and project, contracts and agreements, investigation of management team, permits/licenses status, site control, environmental/geotechnical, corporate records, use of investment funds
- Analysis of power market and sales, hedging options, interconnects/transmission, energy management
