By EPC Partners Inc. Engineering Team | Plant Design & Engineering
Site selection is one of the earliest and most consequential decisions in an industrial plant project. The site determines what can be built, how much it costs, how efficiently the plant operates, and how it affects the surrounding community. A good site can make a project viable; a poor site can make it unworkable, no matter how good the design or construction.
At EPC Partners Inc., we have supported plant projects across a wide range of sites, from geothermal fields in the East African Rift Valley to coastal desalination sites in the Arabian Gulf, and from constrained industrial sites in Japan to remote locations in Southeast Asia. Each site has presented different challenges, and each has reinforced the same lesson: site selection deserves careful, disciplined analysis from the very beginning.
This article covers the key practices in plant site selection, drawing on our experience supporting projects across Asia, the Middle East, Africa, and Europe.
What Is Site Selection?
Site selection is the process of identifying, evaluating, and choosing the location for an industrial plant. It includes:
- Site identification: What sites are available?
- Site screening: Which sites meet the minimum requirements?
- Site evaluation: How do the remaining sites compare?
- Site selection: Which site is best?
- Site confirmation: Is the chosen site suitable for the plant once investigated in detail?
Site selection is not just about finding land. It is about finding the right land for the plant, the project, and the community.
Why Site Selection Matters
Site selection directly affects project viability.
| Factor | Impact of Good Site Selection | Impact of Poor Site Selection |
|---|---|---|
| Cost | Lower construction and operating costs | Higher costs, expensive fixes |
| Schedule | Construction proceeds smoothly | Delays from site issues |
| Performance | Plant operates at design conditions | Plant underperforms due to site conditions |
| Compliance | Regulatory requirements met | Permitting problems |
| Community | Community supports the project | Community opposition |
| Sustainability | Site supports long-term operation | Site becomes a liability |
For small to medium-scale industrial plants, where there is less margin for error, site selection can determine whether the project proceeds at all.
Define Requirements First
Before any site is considered, the project needs a clear statement of what the plant requires from its site. This site requirements basis should cover:
- Plant footprint: Area for the plant itself, plus laydown, construction facilities, and future expansion.
- Process needs: Fuel, raw materials, cooling or process water, and product or power export.
- Connections: Grid interconnection, pipelines, product transport, and communications.
- Constraints: Noise, emissions, setback distances, and safety distances from neighbors.
- Project drivers: Target schedule, budget limits, and financing conditions.
Without this basis, sites cannot be screened or compared consistently.
Site Selection Criteria
Site selection considers many criteria.
| Criterion | Description | Examples from Our Experience |
|---|---|---|
| Land | Adequate area, suitable topography, secure land rights | Geothermal sites in Kenya and Indonesia required careful handling of steep, volcanic terrain |
| Access | Roads, rail, ports | Remote sites in Ethiopia and Indonesia required new access roads |
| Utilities | Power, water, gas, communications | Desalination sites in the Gulf required careful utility planning |
| Resources | Fuel, raw materials, water | Geothermal sites depend on resource availability; thermal plants depend on fuel supply |
| Environment | Environmental conditions and constraints | Coastal sites in the Gulf required assessment of marine impacts |
| Regulatory | Zoning, permits, approvals | Projects in Japan and the Middle East required extensive permitting |
| Social | Community impact, social acceptability | Projects in Kenya and Indonesia required community engagement |
| Geotechnical | Soil conditions, seismic risk | Seismic conditions in Iceland and Indonesia required special foundation design |
| Climate | Temperature, humidity, wind, flood risk | Desert sites in Saudi Arabia and Qatar required heat and dust mitigation |
Each criterion should be assessed for each candidate site, and the results compared systematically.
Site Identification
Site identification is the first step in site selection. Common sources include:
- Client-provided sites: Sites already owned or identified by the client.
- Government agencies: Sites identified by government development agencies, such as industrial parks or designated resource areas.
- Site searches: Proactive searches for suitable sites, using maps, satellite imagery, and local advisers.
- Existing facilities: Expansion of existing facilities.
- Brownfield sites: Sites with existing infrastructure.
For projects in regions like East Africa or Southeast Asia, site identification often begins with a broad geographic search before narrowing down to specific sites.
Site Screening
Site screening eliminates sites that do not meet minimum requirements. Typical screening questions are:
- Adequate land area: Is there enough space for the plant and its future expansion?
- Access: Is the site accessible for construction and operation?
- Utilities: Are utilities available, or can they be provided?
- Regulatory: Is the site zoned for industrial use?
- Land rights: Can the land be acquired or leased with clear title?
- Environmental: Are there any environmental constraints that cannot be mitigated?
- Social: Are there any social constraints that cannot be mitigated?
Screening should be objective and consistent across sites. A site that fails a screening criterion is removed, not carried forward on the hope that the problem will be solved later.
Site Evaluation
Site evaluation compares the remaining sites in detail.
| Criterion | Weight | Consideration |
|---|---|---|
| Capital cost | High | Land, site preparation, infrastructure |
| Operating cost | High | Fuel, utilities, logistics |
| Schedule | High | Permitting, construction time |
| Technical suitability | High | Geotechnical, climate, utilities |
| Regulatory | High | Permits, approvals, compliance |
| Social | Medium | Community impact, acceptance |
| Environmental | Medium | Environmental impact, mitigation |
| Future expansion | Medium | Space for future growth |
Evaluation criteria and weights should be defined before evaluation begins, so that the result is not shaped by a preferred site.
Weighted Scoring and Cost Comparison
A weighted scoring matrix is a practical way to compare sites. Each site is scored against each criterion, scores are multiplied by the agreed weights, and the totals are compared. Two cautions apply:
- Do not rely on the score alone. Review the result with cost estimates, and test whether the ranking changes if weights are adjusted (sensitivity check).
- Treat fatal flaws separately. A single issue, such as an unobtainable permit, should disqualify a site regardless of its total score.
Cost comparison should include land, site preparation, access roads, utility connections, foundations, and operating costs over the plant life, not capital cost alone.
Geotechnical Considerations
Geotechnical conditions are a critical factor in site selection. Key considerations are:
- Soil conditions: Bearing capacity, settlement, liquefaction potential.
- Rock conditions: Depth to rock, rock quality.
- Seismic risk: Earthquake hazard, fault proximity.
- Groundwater: Depth, quality, contamination.
- Slope stability: Landslide risk, slope angles.
At our geothermal projects in Kenya (Olkaria I Unit 6, 83 MW) and Indonesia (Muara Laboh, 85.2 MW), the volcanic terrain required careful geotechnical assessment for foundations, access roads, and pipeline routing. In Iceland (Theistareykir, 2×45 MW), seismic conditions required special design considerations.
From the field: At one geothermal site in Indonesia, the volcanic terrain required special foundation design and careful access road planning. At another site in Iceland, seismic conditions influenced the structural design approach. In each case, the unique conditions of the site shaped the engineering approach, and identifying them early meant they could be designed for rather than discovered during construction.
A staged investigation works best: desktop review and geological mapping at screening, then boreholes and testing at the shortlisted sites, and a detailed investigation at the chosen site.
Access and Logistics
Access and logistics affect both construction and operation. Key considerations are:
- Road access: Width, load capacity, gradients, bridges, and turning radii.
- Port access: Proximity, capacity, shipping routes.
- Rail access: Availability, capacity.
- Air access: Proximity to airports for personnel and urgent equipment.
- Construction access: Can large and heavy equipment, such as turbines, generators, and transformers, be delivered to site?
A route survey from the port of entry to the site is worthwhile for any plant with heavy or oversized equipment. For remote sites in Ethiopia (Aluto Langano, 5 MW) and Indonesia, access roads and logistics planning were critical to construction success.
Utilities and Infrastructure
Utilities and infrastructure must be available or provided. Key considerations are:
- Power: Availability, reliability, cost, and grid connection capacity.
- Water: Availability, quality, treatment requirements.
- Gas: Availability, pressure, quality.
- Communications: Availability, reliability.
- Waste disposal: Availability, capacity.
Where a utility must be extended to the site, its cost, schedule, and the approvals involved should be included in the site evaluation. For desalination projects in the Gulf (Taweelah, 909,200 m³/day; Jubail 3A, 600,000 m³/day), power and water infrastructure were central to site selection.
Environmental Considerations
Environmental conditions affect plant design and operation. Key considerations are:
- Climate: Temperature, humidity, wind, rainfall.
- Air quality: Ambient air quality, dispersion conditions.
- Water: Availability, quality, discharge options.
- Ecology: Sensitive habitats, protected species.
- Natural hazards: Flood, earthquake, storm, tsunami, landslide.
For coastal desalination sites in the Gulf, marine environmental impacts were carefully assessed. For geothermal sites in Kenya and Indonesia, land use and ecological impacts were important considerations. Natural hazard exposure, especially flooding, should be checked against the plant design life and not only current conditions.
Regulatory Considerations
Regulatory requirements affect site selection. Key considerations are:
- Zoning: Is the site zoned for industrial use?
- Permits: What permits are required?
- Approvals: What approvals are required?
- Timeline: How long will approvals take?
- Compliance: Can the plant comply with regulations?
For projects in Japan (Asahi Kasei Mizushima, 29.1 MW), Qatar (Al Kharsaah, 800 MW solar), and Saudi Arabia, regulatory requirements and permitting timelines were significant factors.
Land Rights and Acquisition
A site is only usable if the land can be secured. This is often underestimated. Considerations include:
- Ownership and title: Who owns the land, and is title clear?
- Acquisition or lease: Terms, cost, and timeline.
- Existing users: Farmers, residents, or other users who may need to be resettled or compensated.
- Easements and rights of way: For access roads, pipelines, transmission lines, and discharge routes.
- Encumbrances: Mortgages, disputes, or restrictions on use.
Land issues can delay a project for months or years, and lenders typically require secure land rights before financial close.
Social Considerations
Social factors affect site acceptability. Key considerations are:
- Community: Proximity to communities, impact on residents.
- Employment: Local employment opportunities.
- Infrastructure: Impact on local infrastructure.
- Land use: Impact on local land use.
- Cultural: Impact on cultural or heritage sites.
For projects in Kenya, Ethiopia, and Indonesia, community engagement and social impact assessment were important parts of site selection. Engaging the community early, before the site is fixed, is far easier than winning support after the decision has been made.
Site Confirmation and Due Diligence
Once a preferred site is chosen, it should be confirmed before the project commits to it. Confirmation typically includes:
- Detailed geotechnical and topographic surveys.
- Verification of land rights and boundaries.
- Confirmation of utility connection capacity and terms.
- Confirmation of permitting pathway and timeline.
- Review of environmental and social baseline studies.
- Update of the cost estimate and schedule for the chosen site.
If confirmation reveals a serious problem, the next-ranked site should still be available. For that reason, it is wise to keep at least one alternative alive until the preferred site is confirmed.
Site Selection in Small Plants
Small plants face particular challenges with site selection:
- Fewer resources for site evaluation.
- Less data available.
- Less in-house expertise.
- Competing priorities.
Practical approaches include:
- Focus on key criteria: Concentrate on the most important site criteria.
- Use available data: Use government data, maps, and site visits.
- Seek expert advice: Get advice from geotechnical, environmental, and regulatory experts.
- Visit sites: Visit candidate sites to assess conditions firsthand.
- Document decisions: Record the basis for the decision.
- Consider lifecycle: Consider lifecycle costs, not just capital costs.
Site selection does not need to be complex. It needs to be thorough and honest.
Common Mistakes in Site Selection
Even experienced organizations make mistakes. Common ones include:
- Insufficient geotechnical investigation: Discovering site problems after construction begins.
- Ignoring access constraints: Discovering that large equipment cannot be delivered.
- Underestimating utility requirements: Discovering that power or water is inadequate.
- Ignoring environmental constraints: Discovering that permits cannot be obtained.
- Ignoring social constraints: Discovering community opposition too late.
- Overlooking land rights: Discovering title or compensation issues after the site is chosen.
- Rushing site selection: Insufficient time for thorough evaluation.
- No documentation: Not recording the basis for the decision.
These mistakes are costly to correct. They are much cheaper to avoid through disciplined site selection.
How EPC Partners Inc. Approaches Site Selection
At EPC Partners Inc., we bring practical experience from projects across Asia, the Middle East, Africa, and Europe to site selection. Our approach includes:
- Thorough assessment: We assess all key site criteria: geotechnical, access, utilities, environmental, regulatory, land, and social.
- Local knowledge: We work with local experts to understand site conditions and regulatory requirements.
- Practical experience: We have seen how site conditions affect construction and operation on real projects.
- Risk assessment: We identify and assess site-related risks.
- Detailed documentation: We document the site selection process and the basis for decisions.
- Long-term focus: We consider lifecycle costs and long-term operation, not just capital costs.
We have supported projects for clients including Marubeni Corporation, Fuji Electric Co., Ltd., and Toyota Tsusho Corporation, working alongside their teams to assess sites and support project delivery.
Our experience includes supporting geothermal projects in Kenya, Ethiopia, Indonesia, Iceland, and Japan; desalination projects in the UAE, Saudi Arabia, Oman, and Qatar; thermal power projects in Vietnam, Bangladesh, and Japan; and water treatment projects in Vietnam, Kuwait, and Qatar.
For plant owners, this often means site decisions that are sound, well-documented, and support long-term operation.
How to Evaluate Site Selection Readiness
When reviewing site selection, ask:
| Question | Why It Matters |
|---|---|
| Are site requirements and criteria clearly defined? | Defines what the site must provide |
| Have all candidate sites been identified? | Ensures no site is overlooked |
| Are sites evaluated against clear criteria and weights? | Ensures consistent evaluation |
| Has geotechnical investigation been performed? | Identifies site conditions |
| Is access and logistics assessed? | Ensures construction and operation are feasible |
| Are utilities and infrastructure assessed? | Ensures utilities are available |
| Are environmental and regulatory constraints assessed? | Ensures permits can be obtained |
| Are land rights secured or achievable? | Ensures the site can actually be used |
| Are social constraints assessed? | Ensures community acceptance |
| Has the chosen site been confirmed, with an alternative kept in reserve? | Reduces the risk of late surprises |
| Is the decision documented? | Ensures transparency |
A plant that addresses these questions is ready for sound site selection.
Key Takeaways
- Define site requirements before looking at sites.
- Screen objectively, then evaluate shortlisted sites against weights set in advance.
- Invest early in geotechnical, access, utility, and land-rights investigation.
- Engage regulators and communities before the site is fixed.
- Confirm the preferred site and keep an alternative until confirmation is complete.
- Document the basis for the decision.
Conclusion
Site selection is critical to plant success. For small to medium-scale industrial plants, it determines whether the plant can be built, how much it costs, and how well it operates.
By focusing on site requirements, identification, screening, evaluation, geotechnical considerations, access, utilities, environmental, regulatory, land, and social factors, owners and project teams can ensure that the site selected is the best fit for the plant.
If you are planning a plant project and need support with site selection or EPC project delivery, contact us to discuss how we can help.
EPC Partners Inc. is a Japanese EPC support firm with experience supporting power, water, and industrial plant projects across Asia, the Middle East, Africa, and Europe. For more information, visit our project list.
