Executive summary
Verify each assumption behind the recommended option independently — site suitability, technology maturity, market demand, resource availability and financial viability — and consolidate findings into a single feasibility report with a clear recommendation. That report, and the option it confirms, is the mandate technical planning uses to begin defining requirements.
This stage inherits a single recommended option, not a menu; its job is to confirm or disprove that option's assumptions, not to reopen the option comparison already made.
A feasibility study that only confirms what management wants to hear has failed its purpose; independent verification is the point.
What this stage must resolve
- A recommended option with assumptions not yet independently verified
- Site, permitting or utility constraints not yet confirmed
- Technology or process maturity uncertain for the intended scale
- Market or demand assumptions carrying material investment weight
- Financing viability dependent on assumptions not yet stress-tested
Work performed in this stage
Technical feasibility
Confirms the technology and process can deliver the required output reliably.
Site feasibility
Confirms land, utilities, permitting and logistics support the concept.
Market feasibility
Confirms demand assumptions with independent data, not sponsor optimism.
Financial feasibility
Stress-tests the business case numbers under adverse scenarios.
Regulatory feasibility
Confirms permitting, environmental and safety pathways are achievable in the timeframe.
Comparison table
| Test | Confirms | Failure consequence if skipped |
|---|---|---|
| Technical | Process can meet output and quality targets | Underperforming asset post-commissioning |
| Site | Land, utilities and permits support the plan | Delay or relocation mid-project |
| Market | Demand justifies the capacity added | Idle capacity and poor return |
| Financial | Returns hold under adverse scenarios | Distress under normal market volatility |
| Regulatory | Permitting pathway is achievable in time | Stalled project awaiting approval |
What each feasibility test resolves
Risks and governance considerations
- Independence matters: the team testing feasibility should not be the same team that authored the business case
- A negative feasibility finding is a successful outcome if it prevents a larger later loss
- Feasibility findings should be dated — market and regulatory conditions move
- Cost of the feasibility study itself should be proportionate to the capital at risk
What to prepare
- Confirmed recommended option from the business case
- Independent technical and site assessment
- Market data supporting demand assumptions
- Stress-tested financial model
- Regulatory and permitting pathway assessment
What to measure
Frequently asked questions
How long should a feasibility study take?
Proportionate to project size — weeks for a modest line addition, several months for a greenfield facility.
Should the same team write the business case and the feasibility study?
Preferably not; independent verification is the value the feasibility stage adds.
What happens if feasibility is negative?
The project returns to business case development for re-scoping, or is closed before design costs are incurred.
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Global B2B Group does not sell equipment and does not represent lenders, export credit agencies or development banks. This material is published to help industrial organisations plan, structure and prepare capital projects. It is general information for decision-making, not financial, legal or tax advice.