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Biomethane Purchase Agreement

Biomethane Purchase Agreement Template for England and Wales

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Key Requirements PROMPT example:

Biomethane Purchase Agreement

"I need a Biomethane Purchase Agreement for a 5-year supply arrangement starting March 2025, where our agricultural facility will supply approximately 500,000 therms annually to a major utility company, with quarterly payment terms and specific quality requirements for grid injection."

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Document background
A Biomethane Purchase Agreement is essential for companies engaged in the production and sale of biomethane in England and Wales. This agreement type has become increasingly important with the growth of renewable gas initiatives and the UK's commitment to reducing carbon emissions. The document establishes the commercial and technical framework for biomethane transactions, ensuring compliance with UK gas regulations and renewable energy incentive schemes. It's particularly relevant for projects involving grid injection and is structured to address both immediate supply obligations and long-term operational requirements.
Suggested Sections

1. Parties: Identification and details of the buyer and seller

2. Background: Context of the agreement and parties' intentions

3. Definitions: Key terms used throughout the agreement including technical and commercial definitions

4. Supply Obligations: Core obligations regarding biomethane supply, delivery commitments, and specifications

5. Price and Payment: Pricing mechanism, payment terms, invoicing procedures and payment security

6. Quality Requirements: Biomethane quality specifications, testing procedures and compliance requirements

7. Delivery Points: Specification of delivery location, transfer of title and risk

8. Term and Termination: Duration of agreement, renewal terms, and termination provisions

9. Force Majeure: Events constituting force majeure and consequences

10. Liability and Indemnities: Allocation of risks, limitations of liability and indemnification obligations

Optional Sections

1. Green Certificates: Provisions for handling environmental certificates, credits and sustainability requirements

2. Development Obligations: Obligations regarding facility development and construction milestones

3. Transportation: Transportation arrangements and responsibilities if seller handles transportation

4. Maintenance: Planned and unplanned maintenance procedures and notifications

Suggested Schedules

1. Technical Specifications: Detailed technical requirements and specifications for biomethane quality

2. Pricing Formula: Detailed pricing calculations, adjustments and indexation mechanisms

3. Measurement Procedures: Details of quantity and quality measurement methodologies

4. Delivery Points: Technical specifications and diagrams of delivery points

5. Form of Performance Security: Template for performance security documentation

6. Testing Procedures: Detailed procedures for testing and verification of biomethane quality

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Gas Act 1986: Primary legislation governing gas supply and transportation, licensing requirements, and regulatory framework in England and Wales

Energy Act 2008: Key legislation providing framework for renewable energy and renewable heat incentives, crucial for biomethane regulation

Climate Change Act 2008: Sets carbon reduction targets and establishes key renewable energy policy framework affecting biomethane production and sales

Renewable Heat Incentive (RHI) Regulations: Regulatory framework covering both Domestic and Non-Domestic RHI schemes, including specific requirements for biomethane injection

Gas Safety (Management) Regulations 1996: Establishes gas quality requirements and safety standards for gas injection into the network

Environmental Permitting Regulations 2016: Covers environmental compliance requirements and waste management aspects of biomethane production and supply

Gas Safety (Installation and Use) Regulations 1998: Sets out safety requirements for gas installations and usage in the UK

Network Entry Agreements: Industry requirements for connecting to and injecting biomethane into the gas network

Grid Code Requirements: Technical and operational requirements for connection to and use of the gas network

Retained EU Renewable Energy Directive: Post-Brexit retained EU legislation setting requirements for renewable energy production and supply

Competition Law: UK competition law principles affecting commercial agreements in the energy sector

Contract Law: English common law principles governing formation and enforcement of commercial contracts

Environmental Protection Legislation: Various environmental laws and regulations affecting biomethane production and supply

Health and Safety Regulations: General health and safety requirements applicable to biomethane production, transportation, and supply

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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