Objective

The main objective of this activity is to execute the fuel / consumable contracts which have been negotiated in the ‘Define’ stage. 

Major Deliverables

• Executed fuel supply contract(s) and managed delivery of fuel
• Executed power/utility supply contract(s) and managed delivery of power / utilities

Tasks

Specific tasks include the following:

• Undertake any outstanding detailed design work relating to fuel supply, storage, handling and tieing-in to existing infrastructure (gas pipelines etc)
• Execute contracts for supply of:
• Primary fuel (gas / coal / oil / biomass)
• Auxiliary or supplementary fuels (e.g. gas / biomass)
• Electrical power
• Waste heat
• Raw /Potable / township water
• Chemical dosing for feed-water systems
• Other water treatment chemicals
• Absorbents, catalyts, other capture process chemicals
• Other utilities to power / capture plant
• These contracts typically should cover:
  • Basis of contract e.g. arms length contract, pass-through contract
  • Quality of fuel and penalties for deviation from specification including rejection limits
  • Contract term and pricing review options (5 year / 10 year)
  • Delivery schedule and damages for late delivery of fuel (coal stockpiling options)
  • Take-or-pay arrangements for gas contracts
  • Performance rewards / penalties
  • Fuel / utility supply metering arrangements.  For pipeline supplies and electrical supplies, this typically will involve fiscal metering, for road / rail fuel deliveries typically weighbridges are used.  Arrangements for delivery to site should be considered in negotiation prior to execution (e.g. driver swipe card systems, signage of delivery routes, fuel receipt inspections)
• Arrange contract payment mechanism and execute payments to suppliers

Examples

• Revised Contract for Supply of Business Fuel: Carbon Trust (requires Site Registration)

Key Personnel

• Project Manager and staff (Project Controller and Document Controller)
• Financier(s)
• Procurement Manager
• Power and Capture Plant owners
• Power and Capture Plant operators
• Fuel, power and utility providers