Economic advisory for Cauldron QLD's Precision Fermentation CMO project
Economic advisory for Cauldron QLD's Precision Fermentation CMO project
Client: Aurecon Australasia PTY LTD (Aurecon)
Project name: Cauldron QLD Precision Fermentation CMO
Project description
BDO was engaged by Aurecon Australasia PTY LTD (Aurecon) to assist in prefeasibility services for Cauldron’s Precision Fermentation CMO Project to support funding from the Queensland Government.
Through this project, Cauldron and their joint venture partners were looking to develop a fermentation facility with an initial capacity for five 100,000 litre production lines using continuous fermentation technology. The facility is to be a scaled up continuous version of Cauldron’s batch precision fermentation process.
BDO's role
BDO was engaged to undertake a prefeasibility study to support Cauldron’s engagement with the local state government, the Queensland Government, including an application for grant funding. BDO conducted the following prefeasibility requirements to deliver the Project outcomes:
- A broad market assessment providing a high-level summary of the market characteristics in relation to the products produced through precision fermentation.
- An economic analysis for the proposed facility which included an economic impact assessment of the impact of construction and operations on employment and output. Additionally, a cost benefit analysis was conducted which identified and quantified the economic costs and benefits attributable to the project.
- A financial and affordability analysis to assess the feasibility of the precision fermentation facility and procurement strategy. Additionally, the assessment reviewed the economic impact on the regional centre and the capacity and resources available to deliver the Project. The impact of the establishment of the LNG industry in Gladstone was used in a benchmarking exercise.
- A detailed review of Cauldron’s financial model using spreadsheet checking software to identify unique formulas and confirm consistency of formulas across all time periods. In the review process BDO also considered unique formulas to determine whether the calculations are, in all material respects, logical, mathematically correct and internally consistent across all time periods.
- Funding documents for submission on behalf of Cauldron.