IUT's bio–methanisation plant was an ambitious undertaking. Budgeted at $60 million, it generated 10 megawatts and the plant was designed to process 800 tonnes of food waste.
Investors were confident that with their state of the art process technology and customers that are ready, a continuous income flow would be generated by the plant once it was set up and working.
After three years of losses, and to fulfill its production goals, in 2011, IUT entered liquidation, and with it the Singapore's first large scale food waste-to-energy facility was closed.
The case explores these issues: first mover pitfalls in a sustainable energy enterprise; evaluation of new enterprise business plans; execution challenges for startups; premise testing/sensitivity analysis in costing of new enterprises.
Publication Date: 08/24/2015
This is just an excerpt. This case is about Accounting
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