NAES: Biofuels Digest’s 2014 5-Minute Guide

NAES is a multi-national services company providing independent, third-party operations and maintenance (O&M), engineering and technical, maintenance and construction, and business advisory services for a broad range of customers in the power, refining, process, and renewable energy markets (including fuels and chemicals).  Headquartered in Seattle, Washington, NAES was founded in 1980 and today exceeds 2,700 employees in more than a dozen U.S. and international offices.  NAES is a wholly-owned subsidiary of ITOCHU Corporation, a Fortune Global 500 company.

Business Model:

NAES employs a transparent business model.  Acting on behalf of the plant owner, NAES operates under commercial agreements characterized by the following:

• • Cost plus fee pricing
• • Owner-approved operating plans and budgets
• • Contract terms ranging from 3-20 years
• • Employment of all plant personnel
• • Administration and implementation of customer agreements for feedstock, off-take, etc.

Competitive Edge(s):

Experience base…NAES has operated 230 plants in 37 U.S. states and 12 countries.  Also includes 56 greenfield projects where NAES recruited and hired over 1,100 staff.

Technology breadth…NAES has operated first-of-kind and first-commercial plants.  Additionally, NAES-operated plants include 18 unique technologies and 30 sources of feedstock.

Bottom-Line Results…NAES delivers bottom-line results greater than multiples of its fees through staffing efficiencies, revenue enhancements, and cost avoidance.  Group pricing discounts for purchases of products and services, leveraging fleet scale for insurances and benefits, and effective utilization of extensive home office infrastructure combine to optimize plant performance and create an environment of safety and environmental compliance.

Financeability…NAES is a “check-the-box” strategic partner for equity, debt, and funds.

3 Top Milestones for 2010–13:  

NAES continued or commenced plant operations for first-commercial plants in power and biosolids.  In each instance, NAES recruited, hired, and trained employees, developed and implemented programs and procedures, and supported startup and commissioning in advance of commercial operations.

NAES secured O&M awards for approximately 12 “next generation” fuels and chemicals plants, including thermo-chemical, gas-to-liquids, biomass-to-liquids, fermentation, and integrated waste technologies.

3 Major Milestone Goals for 2014–16:  

Supporting its clients to achieve financial close and validate first-commercial plants.

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