It is larger than a pilot plant, and is the final stage in research, development and demonstration of a new process.
However, demonstration plants are generally larger than pilot plants, and are often constructed following a successful trial in a pilot scale size.
[1] Demonstration plants are used to prove a process works at industrial scale, and is financially viable in its intended industry.
3D modeling, chemical similitude studies, mass and energy balances, risk factors, computational fluid dynamics (CFD), and mathematical modeling are common techniques used to design demonstration modules before actual fabrication occurs.
A demonstration plant must show that enough end-product can be created to offset the costs of the commercial system over a period of time.