Objective

The objective of this activity is to:

• Negotiate and finalise all fuel supply contracts appropriate for the power plant (coal / gas / distillate fuel / biomass) in preparation for for execution
• Negotiate all power/utility/consumables contracts appropriate for the capture plant in preparation for for execution

Major Deliverables

• Fuel supply contract(s)
• Power/utility supply contract(s) 

Tasks

Specific tasks include the following:

• Undertake any fuel testing identified during Evaluate stage
• Undertake any Front End Engineering Design (FEED) design work relating to fuel supply
• Agree on the basis of contracts for supply of fuel to power plant, flue gas or reformer gas to capture plan, power, heat and/or other utilities to capture plant, e.g. arms length contract, pass-through contract
• Negotiate and finalise power/utility supply contract(s), ready for execution, ensuring that issues identified in previous stages are taken into consideration
• Negotiate and finalise fuel supply contracts, ready for execution.  This may include consideration of:
  • Quality of fuel and penalties for deviation from specification
  • Rejection limits.
  • Contract start date, term and pricing review options (5 year / 10 year)
  • Delivery schedule and damages for late delivery of fuel (coal stockpiling options)
  • Custody transfer point.
  • Take-or-pay arrangements for gas contracts
• Produce signable contracts for the execution stage

Examples

• Strategic Analysis of the Global Status of Carbon Capture and Storage
• How well placed is the Brown coal sector to meet the Carbon capture and storage challenge
• Swan Hills In-Situ Coal Gasification project
• Cost and Performance Baseline for Fossil Energy Plants, Volume 1: Bituminous Coal and Natural Gas to Electricity, 2010 Edition

Key Personnel

• Project Manager and staff (Project Controller and Document Controller)
• Engineering work-stream lead
• Process work-stream lead
• Project Engineers
• Power Plant operator
• Process provider
• Capture plant operator
• Financier(s)
• Key Engineering sub-consultants
• HAZOP team