Two phrases that have come into common usage to discuss stages of asset development are:
∙ Greenfield projects: These are projects that involve the construction or development of new infrastructure assets.
∙ Brownfield projects: These are projects that involve the operation of an existing infrastructure asset with a recognizable revenue stream.
A more meaningful description of the stage of development of an asset could reflect the risks inherent in the proposition, for example:
∙ New and innovative: An asset or project is described as new and innovative infrastructure if it uses untested technology or construction/operation methods. An example of a new and innovative project is a carbon capture infrastructure project.
∙ New and tested: New and tested infrastructure uses tried and tested technology and construction methods in a new facility or project.
∙ Existing and established: Infrastructure where the asset already exists and there is a track record of its performance and usage is described as existing and established.
As with all of these definitions, there can be variations on a theme. For example, existing projects may involve a certain amount of asset renovation or extension, but the key is to identify the predominant characteristic.