Demystifying Engineering Projects Part 2: Feasibility and Pre-FEED

In the second of this four-part series, Steven King highlights the importance of the stages, what is involved in the delivery and how they set the bedrock for a successful project

THE SUCCESS of any engineering capital project relies on efficient and methodical execution. As detailed in Part 1,¹ a crucial component is the implementation of project phasing. Project phasing serves as a structured roadmap for engineering projects, facilitating effective management of resources, timelines, and risks. It breaks the project into distinct stages, each with specific objectives, deliverables, and safety considerations.

Feasibility and Pre-Front End Engineering Design (Pre-FEED) are two of the most crucial stages in an engineering project. They set the foundation for all subsequent phases, ensuring a project is viable and well-planned. Skipping or rushing through these stages can lead to significant cost overruns, delays, and safety issues.
It is understood that different industries will have different sanctioning authorities and different objectives/definitions for a given project phase. However, in this article we will focus, at a high-level, on process engineering.

Feasibility studies

A feasibility study is an assessment of project viability, both technically and financially. This stage involves investigating various engineering options to arrive at the best available solution. It should provide key stakeholders with the tools to decide whether the project should proceed to the next stage.

This stage should provide preliminary cost estimates and evaluation of market conditions to allow informed decision-making and minimise the risk of project failure. A thorough feasibility study also ensures that the project aligns with regulatory and environmental standards, reducing the likelihood of costly rework or delays later in the project life cycle, ultimately safeguarding both time and investment.

Different companies and industry sectors may have different terminology for this stage of a project, and it is sometimes referred to as Front End Loading Stage 1 (FEL-1).

BETA (Business, engineering & technology assessment) studies

Good practice is to not start engineering anything until the best process technology is decided, it is confirmed that it will deliver the required business benefit, and that engineering it is feasible.

One technique to help decision-making in the early stages, for example FEL-1, is a BETA study. It should complement the overall feasibility study by providing an evaluation of the project’s key aspects, at this stage:

• Business assessment: Evaluates the commercial potential, including market conditions, financial forecasts, and ROI
• Engineering assessment: Focuses on identifying technical options, process configurations, and preliminary design concepts
• Technology assessment: Reviews available technologies to determine suitability, maturity, and innovation potential
  A great example of a BETA study in practice is the design of a liquid hydrogen (LH2) storage terminal. At FEL-1, the study assesses business viability, engineering feasibility, and available technologies.

The business assessment evaluates market demand, supply chains, and financial returns, considering regulatory incentives.

The engineering assessment help to identify the most appropriate engineering configurations. This is particularly important in this case when dealing with cryogenic conditions (-253°C). Factors like boil-off gas management, material selection, and safety constraints must be addressed early to avoid costly redesign in future engineering stages.

The technology assessment reviews LH2 storage and transfer solutions, ensuring they are mature and suitable. Due to hydrogen’s low density and high diffusivity, innovative approaches such as advanced insulation and vent recovery may be required.

By conducting a structured BETA study, stakeholders can identify risks, help to select the most appropriate technologies, and ensure a viable project before more comprehensive engineering begins.