The parties to a fuel supply agreement are usually the: ensuring a reliable supply of fuel is essential to the success of any biomass project. A clear and detailed fuel supply agreement can contribute to the continuous and cost-effective operation of the developer`s facility and to the SL fuel. No.Type of PlantCapacity inMW1Mettur Thermal Expansion6002North Chennai Stage – II12003Vallur Joint Venture (2 units) 700 TOTAL2500 is properly paid. To be economically viable, the developer of a biomass plant as the main source of fuel would need to have one or more reliable agreements regarding the supply of biomass fuel. With a fuel supply contract, a buyer agrees to purchase fuel from a supplier for final use and the supplier agrees to deliver the fuel in accordance with the terms of the agreement. When both parties sign the fuel supply agreement, they find that the purchaser relies on the supplier to provide the required amount of fuel at competitive prices. Other names for this document: the GKEL fuel supply contract has signed a fuel supply contract (FSA) for a fixed 500 MW link and a rejuvenation of connections for 200 MW with MCL and receives coal deliveries accordingly. Biomass is a generic term for organic materials obtained from plants or plant materials for the production of heat, electricity or transportation fuel. Biomass as a fuel for energy or heat projects includes the use of biological materials, for example. B: If you receive or need to provide a significant amount of fuel, you can use a fuel supply agreement. Whether you`re a farmer, an equipment rental company, fuel supplying and signing a new customer, a fuel supply contract can help trace the terms of the relationship – when, where, how and how much.
The fuel supply agreement is one of the main contracts a developer will enter into as part of its project acquisition process. Depending on the project, a fuel supply contract can last up to ten years. Suppliers are unlikely to offer longer than 10 years and, in practice, supply contracts are more likely to have a shorter delivery time than this. It is therefore important for the contracting parties to think carefully about how it should work.