Illustration of the split of roles and responsibilities in the project.

The MMMCZCS Feasibility Methodology is divided into six steps across two phases: the Scoping Phase (three steps) and the Study Phase (three steps). Each phase has a set of well-defined activities that will comprehensively scope the project, and evaluate its overall feasibility, as well as outlining the funding need.

Overall division of Feasibility Methodology into Scoping Phase and Study Phase

In Feasibility, the methodology assesses if the specific project is feasible and can obtain funding. If funding is made available, the project will move in the direction of execution

The aim of this step is to form a consortium which includes members from the entire value chain who jointly agree to the goal of the project. Each main area of the assessment requires a workstream lead. At this stage, project members also acknowledge the amount of work they are expected to complete during the Feasibility assessment. The time requirement is strongly dependent on the complexity and novelty of the project, as well as what the company has already done of similar activities (see "Workscope Definition" in step 2).

Hence, each of the project members will have to make sure that they can devote 200 to 1,000 manhours (depending on their responsibilities) during the 12-16 months it takes to conduct the Feasibility Study.

Another element of this step is to ensure that the project specificity and scope are well-described. This is an important element because it allows the right allocation of resources and ensures that the outcomes will fit with the vision.

The MMMCZCS Feasibility Methodology is constructed to accommodate virtually all project setups. However, all the tasks in these steps are not needed for all projects: in cases where the feasibility is already proven for certain parts of the project such as vessel design (e.g. methanol-fuelled feeder vessel) or bunkering of new fuel (e.g. bunkering in Ulsan), the work needed might be significantly reduced.

Illustration of the development of the Work Scope Definition for the actual project.

In some project configurations, the consortium may have to create models of fuel consumption, vessel numbers, incremental cost of cargo, etc, before they can decide on a clear Work Scope Definition.

This step is crucial as this is where the project members can customize the methodology to meet the specific requirements of the project. The project members can deselect some steps and, when needed, add new parameters that are unique to the project. This makes the approach a bespoke and efficient one.

By the time the scoping reaches this step, the project consortium will be in place, they would be aligned on the definition and scope of work for the individual value chain elements. In this last step of the scoping, there are two important elements, running in parallel: a Baseline Document, and a Project Commitment Letter (PCL).

The project members create a Baseline Document which includes all the findings and results from the Feasibility Scoping Phase. This document will form the initiation for the project work that will take place in the Feasibility Study phase and will act as an onboarding document for potential new consortium members. This document is not publicly available and does not require a thorough review; however, it is an important document as it will be the common reference point for the entire consortium.

The Project Commitment Letter is, as the name suggests, a formal declaration of commitment by the workstream leads of the consortium in the green corridor project. In this letter, the workstream leads jointly commit to carry out the necessary work as defined in the Work Scope Definition or oversee the execution of the work (if a 3rd party is conducting the work) at the level of quality outlined in the work scope definition and to put in the necessary manhours.

It is at this stage that the consortium also signs a non-disclosure agreement (NDA). Until now, in the Scoping Phase, the project members worked without an NDA and hence could not share sensitive commercial data. Where the PCL is signed by the workstream leads, who commit to delivering the needed work, the NDA is signed by all parties in the consortium. The NDA is designed by the workstream leads. At the end of the Scoping Phase, all relevant parties sign an NDA to allow for data sharing as long as the data does not involve business critical elements or does not compromise competition.

This step is undoubtedly the most time-consuming step in the entire Feasibility Phase. This is where the technical and regulatory feasibility is being assessed and costs (CapEx and OpEx) for each value chain element in the project are estimated. The Workstream Leads will also evaluate the impact of the green corridor from a just and equitable perspective within their part of the value chain. Step 4 is crucial as it gives the consortium the needed insight to consolidate the feasibility statement and the cost model in Step 5.

In this step, the project lead consolidates all the findings. This consolidation covers two main areas:

1. A feasibility statement; is the green corridor project scope feasible with respect to technical and regulatory parameters.

2. An assessment of the residual cost gap.

This step is important because it helps determine if the project is likely to receive sufficient funding to move towards execution. It creates the base for the consortium members to identify options to close the residual cost gap through public and private sources of funding.

Based on the technical and regulatory assessments in Step 4 and the consolidation in Step 5, the project team develops an integrated roadmap for the way forward. The roadmap communicates what is required to close the cost gap with possible funding/financing options. It is important to have a roadmap as it precisely describes the way forward for the future implementation of the corridor with all practical key information, including costs and project milestones.

Based on the assessments and findings in the previous steps, two key activities are needed in Step 6:

1. A Strategic Investment Brief

2. A Roadmap/Advocacy Plan for the following period

The strategic investment brief (SIB) includes the techno-regula-economic assessment, but add larger regulatory, strategic and political elements. It positions the feasibility study into a larger picture, whereby discussions on potential public funding are more prudent. The SIB includes assessments on job creation from the corridor, as well as other relevant externalities. The SIB serves as a strategic communication document that investors will need to decide whether they should go forward in the maturation The SIB also assists ministries and governmental bodies in the initial planning as to how a funding mechanism can be established.

The Roadmap/Advocacy Plan describes in a simple way how the SIB can be activated. How can funding be achieved? How can better financing be secured? How can the cargo owners, consumers, customers be informed about their needed contribution to close the cost gap?