The technical risks of process commercialization

Developing an innovative manufacturing process generally involves three key stages: lab research, pilot testing and an industrial-scale production. Figure 1 illustrates how project cost estimates evolve with project maturity within an industrial setting.

At the lab stage, the new manufacturing process is still taking shape and requires minimal investment. However, the pilot stage is where the full production chain is tested and confirmed. This stage involves significantly higher investment, since larger and more complex equipment is required. Nevertheless, it helps refine the process for industrial-scale production and reduces risks involved in the final stage.

The technical risks associated with this initial development stage include:

• Technological uncertainties in manufacturing steps
• Variability in raw material sources and other inputs
• Health, safety and environmental (HSE) challenges
• Unclear pathways for scaling up to industrial production

Despite limited resources, the lab manufacturing stage helps identify the technologies, equipment, services and raw materials needed to create the final product while mitigating risks associated with technological choices. During this prototyping phase, manufacturing methods are documented, and by-products are identified and integrated into the business model. A preliminary list of equipment, products and by-products required for the process helps identify HSE risks and determine mitigation measures—these risks are numerous and have already been addressed in a previous article.

By the end of the lab phase, a vision for the industrial plant takes shape, allowing the critical path to be defined. However, developing a new process or product is complex and challenging. Unexpected issues or phenomena will arise during lab work, often slowing progress. To help clients navigate these challenges, BBA provides access to experts with extensive industry networks who can quickly identify solutions.

This stage defines and validates a complete process that meets market expectations while preparing for industrial-scale production. Key risks to address at this stage include:

• Inefficient production
• Variable quality
• HSE challenges
• Lack of a startup and operational strategy

The pilot stage helps reduce risks associated with scaling up production by refining equipment and material choices and selecting efficient material transfer methods between processing stages, from intake to final output. It also improves operational efficiency by developing a preliminary operating philosophy with relevant performance indicators and execution strategies for future key production functions. By the end of this stage, products and quality are sufficiently stable, HSE risks have been identified and resolved and a ramp-up strategy is in place to achieve business plan objectives.

Pilot facilities can differ greatly, depending on a number of factors. In some cases, a small-scale pilot plant in a leased industrial space will suffice, while in others, a full-scale pilot plant in an industrial zone may be necessary. Choosing the right pilot strategy must therefore account for commercial challenges that need to be addressed to achieve the intended objectives. To support this process, BBA offers expertise in process commercialization and operational readiness, helping define production scale-up strategies and other needs at this stage.

Key risks to address at this stage include:

• Cost overruns or project delays
• Startup issues
• Low productivity
• HSE challenges

Industrial-scale production begins with a detailed engineering study to build a high-capacity facility, incorporating lessons learned from the lab and pilot stages. This is the most expensive phase of commercialization, and reducing risks in earlier stages helps strengthen project credibility, reassuring public and private investors.

BBA provides engineering, procurement, construction management and commissioning services for industrial plant projects. With experience in commercialization, construction and process startup, BBA’s multidisciplinary team can deliver highly complex and innovative projects successfully.

Commercializing a process involves both known and unknown risks that must be mitigated. By structuring project development into three stages—lab, pilot and industrial-scale production—you can prioritize risks and optimize investments.

Scaling up from the lab to full industrial production is highly complex. Expert input from engineers and specialists is needed to develop a plan that optimizes quality, costs, efficiency and HSE. For any project involving the commercialization of innovative processes, feel free to contact BBA.