The term “Brownfield vs Greenfield” is frequently heard while project execution. This is a very meaningful term for the oil & gas industry. But, the term greenfield vs brownfield is not only related to oil & gas industries but is widely used in many industries like IT, Construction, Manufacturing, Building Services, etc. Overall, both these terms are related to any kind of project. In this article, we will find out more about Brownfield and Greenfield and their differences.
What is a Brownfield Project?
Brownfield projects are projects where some work has already been made. Site is already partly developed with required infrastructure. From that point onwards new development will be started. Considering Oil & Gas, new expansion projects, revamp projects, yield improvement projects, etc. comes under brownfield projects.
What is a Greenfield Project?
Greenfield project starts from scratch. The site is not developed and required infrastructure for the project is normally not present. So a greenfield project starts afresh from scratch. For oil and gas, completely new projects on undeveloped places, like a new refinery construction, setting up of a chemical or petrochemical plant, etc. falls under greenfield project.
Examples of Brownfield and Greenfield Project Concept
The above concept can be clearly understood from the following examples:
- For the Software industry, updating an existing application to add some new capabilities can be considered as brownfield. But creating a completely new application is considered as greenfield.
- For the Real estate sector, constructing a new tower in an already developed society complex is considered as brownfield whereas constructing a completely new society complex is a greenfield project.
- For a chemical plant, modification of the plant to increase productivity is considered as brownfield whereas constructing a new chemical plant is a greenfield project.
From the above definitions and examples, it is clear that both brownfield and greenfield is a completely different concept. The major differences subject to few basic parameters are listed below:
Brownfield vs Greenfield: Economic Consideration
From the economic point of view, as brownfield projects are normally small-sized, total money involvement is comparatively smaller.
On the other hand, greenfield projects being large projects, and as starts from scratch, the project cost is larger than brownfield projects even though property cost is substantially lower than brownfield projects.
Brownfield vs Greenfield: Space Constraint
Considering refinery projects, in brownfield projects space is limited so each element, piping, equipment, structure need to be minutely checked and placed. Also, because of limited space pipe routing becomes critical as the designer has to use the available space only considering all construction activities as larger construction equipment may not be accessible. Also, there is limited storage space, parking space for project requirements.
On the other hand for new projects, there is much flexibility in design as the initial complete area is empty. So locating equipment and pipe routing becomes much easier. Also, better planning and optimization is possible in greenfield projects.
Brownfield vs Greenfield: Infrastructure Requirement
As brownfield projects are normally expansion or improvement of existing projects, the required infrastructure is available. It’s easy to arrange labors in already developed places. Places are easily accessible for deliveries. Earlier design data, soil reports, etc are easily available.
Greenfield projects being new projects and most of the time in undeveloped places, required infrastructure needs to be created during the project run which will impact the project schedule and deliveries.
Greenfield vs Brownfield: Other differences
Other major differences between brownfield and greenfield are tabulated below:
|Brownfield Project||Greenfield Project|
|Limited space, difficulty in further future development. Even finding required plot size could be difficult.||Ample Space, Future Expansion Possible|
|Easy Accommodation for crew members||Accommodation could be difficult so, must be built beforehand.|
|Easy access to local suppliers||Limited local suppliers in undeveloped locations.|
|Demolition requirement can increase project cost.||Completely new, so no demolition|
|Normally no governmental restrictions||There could be governmental restrictions if deforestation or similar environmental issue arises.|
|Local interfering can delay projects||No chances of local interference|
|Brownfield development localizes communities in a limited congested region.||Developing greenfield sites reduce traffic and congestion with more pleasant environment.|