Low Carbon Hydrogen Agreement: Front End Agreement (Hydrogen Allocation Round 1 - December 2024) (accessible webpage)
Updated 12 February 2025
Dated
[X]
(as the PRODUCER)
and
[LOW CARBON CONTRACTS COMPANY LTD]
(as the LCHA COUNTERPARTY)
LCHA AGREEMENT
RELATING TO [name of Project]
-
THIS AGREEMENT is dated [X] (the “Agreement Date”) and made between:
- (1) [X], a company incorporated under the laws of [X] whose registered office is [X] and whose company number is [X] (the “Producer”); and
- (2) [LOW CARBON CONTRACTS COMPANY LTD, a company incorporated under the laws of England and Wales whose registered office is 10 South Colonnade, London, England, E14 4PU and whose company number is 08818711 (the “LCHA Counterparty”).
BACKGROUND
-
(A) This Agreement is entered into following the applicable contract allocation or negotiation process established under or by virtue of the [EA 2023].
-
(B) The Producer has satisfied the Eligibility Criteria.
-
(C) The LCHA Counterparty is a company wholly owned by the UK Government and is entering into this Agreement solely for the purpose of implementing the provisions of the EA 2023.
-
(D) This Agreement, together with the terms and conditions set out in [version [1] of the document entitled “LCHA Standard Terms and Conditions”] as at [insert date], constitute a “LCHA”.
IT IS AGREED as follows:
1. DEFINITIONS AND INTERPRETATION
1.1 Except as expressly specified in this Agreement, words and expressions defined in the Conditions shall have the same meanings when used in this Agreement. Where a term is defined in both this Agreement and in the Conditions, the definition in this Agreement shall apply instead of the definition in the Conditions.
1.2 In this Agreement and its recitals:
[“Capture Plant” means the part of the Facility described in Annex 1 (Description of the Facility), which:
-
(A) is designed, developed, constructed, commissioned, operated and maintained for the specific purpose of capturing, conditioning, monitoring, metering and exporting CO2 produced by the Facility (including all necessary interfaces and any other facilities or equipment required to export CO2 to the CO2 T&S Network up to the CO2 T&S Network Delivery Point(s)) which complies with the Delivery CO2 Quality Standards; and
-
(B) includes all associated infrastructure required to integrate such assets within the Project;][footnote 1]
[“CCUS-Enabled Gas Reformation Technology” means technology which is installed or implemented pursuant to the UKLCH Programme and which produces hydrogen via gas reformation and utilises CO2 Capture Technology;]
[“CO2 Capture Technology” means technology which is installed or implemented pursuant to the UKLCH Programme and which:
-
(A) captures some or all of the CO2 or any substance consisting primarily of CO2; and
-
(B) temporarily stores, processes and exports CO2 (or any substance consisting primarily of CO2) for permanent storage and disposal [and/or utilisation]; or
-
(C) carries out any other process which is preparatory or ancillary to limbs (A) and (B) of this definition;][footnote 2]
[“CO2 T&S Network Delivery Point(s)” means the point(s) of connection of the Capture Plant to the CO2 T&S Network pursuant to the CO2 T&S Connection Agreement described in Annex 1 (Description of the Facility);][footnote 3]
“Conditions” means the terms and conditions set out in [version [1] of the document entitled “LCHA Standard Terms and Conditions”] as at [insert date] (as amended, modified, supplemented or replaced by this Agreement and as may be amended, modified, supplemented or replaced from time to time in accordance with the Conditions);
[“Electrolytic Technology” means technology which is installed or implemented pursuant to the UKLCH Programme and which produces hydrogen via water electrolysis, where water is split into hydrogen and oxygen using electricity;][footnote 4]
“Eligibility Criteria” means the eligibility criteria for hydrogen production projects set out in [the Cluster Sequencing for CCUS Deployment: Phase 2 (Background and Guidance for Submissions) (November 2021)] / [the Hydrogen Business Model and Net Zero Hydrogen Fund: Electrolytic Allocation Round (Application Guidance Document) (July 2022)];[footnote 5]
“Facility” means the Hydrogen Production Plant, [the Capture Plant][footnote 6], [the Hydrogen Transport Infrastructure][footnote 7], [the Hydrogen Storage Infrastructure][footnote 8] and all ancillary facilities and equipment described in Annex 1 (Description of the Facility), for the safe, efficient, timely and economical operation of the Hydrogen Production Plant, [the Capture Plant], [the Hydrogen Transport Infrastructure] and [the Hydrogen Storage Infrastructure] in a manner to satisfy fully the requirements under the LCHA;
[“HoldCo” means [X];]
“Hydrogen Production Plant” means the hydrogen production plant described in Annex 1 (Description of the Facility), which is used (or intended to be used) to produce Hydrogen and which:
-
(A) was taken into account by the Producer in determining the Initial Installed Capacity Estimate;
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(B) is (except as otherwise agreed in writing by the LCHA Counterparty) situated within the area shaded on the map provided pursuant to paragraph 3(A)(ii) of Part A (Initial Conditions Precedent) of Annex 1 (Conditions Precedent) to the Conditions and which has the geographical coordinates specified in Annex 1 (Description of the Facility); and
-
(C) is described pursuant to paragraph 3(A)(i) of Part A (Initial Conditions Precedent) of Annex 1 (Conditions Precedent) to the Conditions,
adjusted where the context requires to take due account of any changes to the composition of such equipment arising as a result of, or giving rise to:
-
(i) any adjustment to the Installed Capacity Estimate pursuant to Condition 5 (Adjustment to Installed Capacity Estimate: Relevant Construction Event) or Condition 6 (Adjustment to Installed Capacity Estimate: Permitted Reduction); and
-
(ii) the agreement or determination of the Final Installed Capacity pursuant to Condition 7 (Final Installed Capacity);
[“Hydrogen Storage Infrastructure” means the hydrogen storage infrastructure described in Annex 1 (Description of the Facility), which is used (or intended to be used) to (i) process Hydrogen produced by the Hydrogen Production Plant into a form that can be stored, (ii) store such Hydrogen, and (iii) process such Hydrogen into a form that can be transported;]
[“Hydrogen Transport Infrastructure” means the hydrogen transport infrastructure described in Annex 1 (Description of the Facility), which is used (or intended to be used) to transport Hydrogen produced by the Hydrogen Production Plant (directly or indirectly) to an Offtaker’s transport and/or storage network pursuant to the relevant Offtake Agreement;]
“Off-site” means any land which is not On-site;
“Off-site Hydrogen Storage Infrastructure” means the Hydrogen Storage Infrastructure which is located Off-site;
“Off-site Fixed Hydrogen Transport Infrastructure” means the Hydrogen Transport Infrastructure which is fixed and located Off-site;
“On-site” means on the land which falls within the Site;
“On-site Hydrogen Storage Infrastructure” means the Hydrogen Storage Infrastructure which is located On-site;
“Service Agent” has the meaning given to it in clause 9 (but only if Condition 90 (Agent for service of process) is expressed to apply to the LCHA in this Agreement);
“Site” means the land described in Annex 2 (Description of the Site); and
[“UKLCH Electricity Storage System” means an Electricity Storage System described in Annex 1 (Description of the Facility)][footnote 9].
2. AGREEMENT
The Producer
2.1 The Producer shall, as from the Agreement Date, comply with this Agreement (including the Conditions) as the “Producer” and agrees that the Conditions are hereby incorporated into this Agreement as if they were clauses of this Agreement.
The LCHA Counterparty
2.2 The LCHA Counterparty shall, as from the Agreement Date, comply with this Agreement (including the Conditions) as the “LCHA Counterparty” and agrees that the Conditions are hereby incorporated into this Agreement as if they were clauses of this Agreement.
Specific terms
2.3 [The Parties have agreed to amend the Conditions as set out in Annex 3 (Modification Agreement).][footnote 10]
2.4 The Parties agree that, for the purposes of this LCHA, the Conditions shall be amended, modified, supplemented or replaced in accordance with the terms of this Agreement.
3. TECHNOLOGY TYPE
Facility Hydrogen Production Technology
3.1 The Facility Hydrogen Production Technology is the hydrogen production technology deployed by the Facility, as detailed in Annex 1 (Description of the Facility).
3.2 The Facility Hydrogen Production Technology is [[CCUS-Enabled Gas Reformation Technology] / [Electrolytic Technology]].[footnote 11]
Facility Feedstock
3.3 The “Facility Feedstock” applicable to this LCHA shall be:
-
(A) [Natural Gas;] and/or
-
(B) [Refinery Off-Gas.][footnote 12]
4. CONDITIONS PRECEDENT AND MILESTONE
Interpretation
4.1 The “Initial Target Commissioning Window” applicable to this LCHA shall be twelve (12) months, such period commencing on [X][footnote 13].
4.2 The “Target Commissioning Date” applicable to this LCHA shall be [X][footnote 14].
4.3 The “Longstop Period” applicable to this LCHA shall be twelve (12) months following the final day of the Target Commissioning Window or such longer period that results from an extension in accordance with the definition of “Longstop Date”.
Initial Conditions Precedent
4.4 The “Applicable Connection Documents” for the purposes of this LCHA are:[footnote 15]
-
(A) [a water connection [offer]/[agreement] signed by the Producer and the Water Licensed Operator;]
-
(B) [a Private Water Network use agreement signed by the Producer and the owner or operator of the private water network, granting the Producer and Facility access to and use of the relevant network [as described in [insert relevant document]];]
-
(C) [a private water extraction licence signed by the Producer and the Environment Agency;]
-
(D) [an electricity grid connection [offer]/[agreement] signed by the Producer and the Electricity Transmission System Operator;]
-
(E) [an electricity connection [offer]/[agreement] signed by the Producer and the Licensed Electricity Distributor;]
-
(F) [a Private Electricity Network use agreement signed by the Producer and the owner or operator of the private electricity network, granting the Producer and Facility access to and use of the relevant network [as described in [insert relevant document]];]
-
(G) [a natural gas connection [offer]/[agreement] signed by the Producer and the Gas Licensed Transporter;]
-
(H) [a Private Natural Gas Network or Private Refinery Off-Gas Network use agreement signed by the Producer and the owner or operator of the relevant network, granting the Producer and Facility access to and use of the relevant network [as described in [insert relevant document]];]
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(I) [an oxygen supply agreement signed by the Producer and the relevant oxygen supplier;]
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(J) [a CO2 T&S Connection Agreement signed by the Producer and the relevant CO2 T&S Operator;]
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(K) [a CO2 T&S Construction Agreement signed by the Producer and the relevant CO2 T&S Operator; and]
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(L) [a CO2 T&S Code Agreement signed by the Producer and the relevant CO2 T&S Operator,] as such documents are more fully described in Annex 7 (Key Project Documents).
4.5 [The following shall be added as an additional Initial Condition Precedent applicable to this LCHA after paragraph 6 of Part A (Initial Conditions Precedent) of Annex 1 (Conditions Precedent) to the Conditions:
[X].]
Operational Conditions Precedent
4.6 [An “Approved Scheme of Funding” for the purposes of this LCHA means: [X].][footnote 16]
4.7 The “LCHS Agreed Version” applicable to this LCHA is [X].
4.8 [The following shall be added as an additional Operational Condition Precedent applicable to this LCHA after paragraph 9 of Part B (Operational Conditions Precedent) of Annex 1 (Conditions Precedent) to the Conditions:
[X].]
Milestone
4.9 The “Initial Milestone Delivery Date” applicable to this LCHA shall be [eighteen (18) months]/[twelve (12) months] after the Agreement Date.[footnote 17]
4.10 The “Total Project Pre-Commissioning Costs” applicable to this LCHA shall be £[X][footnote 18] per MW (HHV) of the Installed Capacity Estimate.
4.11 The “Project Commitments” applicable to this LCHA shall be the requirements provided for in:
-
(A) Part A (General Project Commitments) of Annex 4 (Project Commitments); and
-
(B) the section of Part B (Technology Specific Project Commitments) of Annex 4 (Project Commitments) which is expressed to apply to the Facility Hydrogen Production Technology.
5. INSTALLED CAPACITY ESTIMATE, REQUIRED INSTALLED CAPACITY AND INITIAL LCHA SALES CAP
5.1 The “Initial Installed Capacity Estimate” applicable to this LCHA is [X][footnote 19] (expressed in MW (HHV)).
5.2 The “Initial LCHA Sales Cap” applicable to this LCHA is [X] (expressed in MWh (HHV)).[footnote 20]
6. CHANGES IN LAW
6.1 The “Post-Tax Real Discount Rate” applicable to this LCHA is [X][footnote 21].
7. PAYMENT CALCULATIONS
7.1 [The “Annual Carbon Cost Protection Cap” applicable to this LCHA is [X] tCO2.][footnote 22]
7.2 The “Base Year” applicable to this LCHA is 2022.
7.3 [The “Capture Rate” applicable to this LCHA is [X].][footnote 23]
7.4 [The “Eligible Emissions Factor” applicable to this LCHA is [X].][footnote 24]
7.5 The “Initial Capital Return Component” applicable to this LCHA is £[X]/MWh (HHV).[footnote 25]
7.6 [The “Initial CCUS-Enabled Non-Variable Costs Strike Price” applicable to this LCHA is £[X]/MWh (HHV).]
7.7 [The “Initial Electrolytic Strike Price” applicable to this LCHA is £[X]/MWh (HHV).][footnote 26]
7.8 [The “Initial Non-Gas Strike Price” applicable to this LCHA is £[X]/MWh (HHV)).][footnote 27]
7.9 [The “Natural Gas Cost Multiplier” applicable to this LCHA is [].][footnote 28]
7.10 The “Strike Price Inclusions” applicable to this LCHA are set out in column 2 of the table in Annex 5 (Strike Price Inclusions).
7.11 The “Total Capex Payment” applicable to this LCHA is £[X].
8. NOTICES
8.1 The address and email address of each Party for any notice to be given under this LCHA, and the department or officer (if any) for whose attention the notice is to be made, is:
(A) in the case of the Producer:
Address:
Email address:
For the attention of:
(B) in the case of the LCHA Counterparty:
Address:
Email address:
For the attention of:
9. AGENT FOR SERVICE OF PROCESS
[Condition 90 (Agent for service of process) shall not apply to this LCHA and there shall be no Service Agent.]/[Condition 90 (Agent for service of process) shall apply to this LCHA and the “Service Agent” shall be [X] of [X].][footnote 29]
Annex 1 (Description of the Facility)
Part A: Overview
The Facility is the [NAME OF PROJECT], comprising of the following:
Hydrogen Production Plant
The Hydrogen Production Plant falls within the area delineated by the following grid references:
Corner Point ID | Latitude | Longitude |
---|---|---|
Northerly corner | [X] | [X] |
Easterly corner | [X] | [X] |
Southerly corner | [X] | [X] |
Westerly corner | [X] | [X] |
[Drafting note: Description of the Hydrogen Production Plant to be populated using information provided in the Producer’s application for a LCHA and to include the unique geographical coordinates of the Hydrogen Production Plant.]
[Hydrogen Transport Infrastructure][footnote 30]
The Hydrogen Transport Infrastructure falls within the area delineated by the following grid references:
Corner Point ID | Latitude | Longitude |
---|---|---|
Northerly corner | [X] | [X] |
Easterly corner | [X] | [X] |
Southerly corner | [X] | [X] |
Westerly corner | [X] | [X] |
AND/OR
The Hydrogen Transport Infrastructure has the following [unique identifiers/serial numbers/equipment identification numbers (as applicable)]:
[X]
[Drafting note: Description of the Hydrogen Transport Infrastructure to be populated using information provided in the Producer’s application for a LCHA and to include the unique geographical coordinates of the Hydrogen Transport Infrastructure and/or the [unique identifiers/serial numbers/equipment identification numbers] of the Hydrogen Transport Infrastructure.]
[Hydrogen Storage Infrastructure][footnote 31]
The Hydrogen Storage Infrastructure falls within the area delineated by the following grid references:
Corner Point ID | Latitude | Longitude |
---|---|---|
Northerly corner | [X] | [X] |
Easterly corner | [X] | [X] |
Southerly corner | [X] | [X] |
Westerly corner | [X] | [X] |
[Drafting note: Description of the Hydrogen Storage Infrastructure to be populated using information provided in the Producer’s application for a LCHA and to include the unique geographical coordinates of the Hydrogen Storage Infrastructure.]
[Capture Plant][footnote 32]
The Capture Plant falls within the area delineated by the following grid references:
Corner Point ID | Latitude | Longitude |
---|---|---|
Northerly corner | [X] | [X] |
Easterly corner | [X] | [X] |
Southerly corner | [X] | [X] |
Westerly corner | [X] | [X] |
[Drafting note: Description of the Capture Plant to be populated using information provided in the Producer’s application for a LCHA and to include the unique geographical coordinates of the Capture Plant, the CO2 T&S Network Delivery Point(s).]
[UKLCH Electricity Storage System][footnote 33]
The UKLCH Electricity Storage System falls within the area delineated by the following grid references:
Corner Point ID | Latitude | Longitude |
---|---|---|
Northerly corner | [X] | [X] |
Easterly corner | [X] | [X] |
Southerly corner | [X] | [X] |
Westerly corner | [X] | [X] |
[Drafting note: Description of the UKLCH Electricity Storage System to be populated using information provided in the Producer’s application for a LCHA and to include the unique geographical coordinates of the UKLCH Electricity Storage System.]
Part B: Facility Hydrogen Production Technology
[Drafting note: Description of the Facility Hydrogen Production Technology to be populated using information provided in the Producer’s application for a LCHA.][footnote 34]
Annex 2 (Description of the Site)
The Site is the land falling within the area delineated by the following grid references:
Corner Point ID | Latitude | Longitude |
---|---|---|
Northerly corner | [X] | [X] |
Easterly corner | [X] | [X] |
Southerly corner | [X] | [X] |
Westerly corner | [X] | [X] |
[Drafting note: Description of the Site to be populated using information provided in the Producer’s application for a LCHA and, unless otherwise included below, to include the unique geographical coordinates of any On-site infrastructure that is not subsidised via the LCHA (if applicable).]
(Description of On-site non-UKLCH Storage)
The On-site non-UKLCH Storage falls within the area delineated by the following grid references:
Corner Point ID | Latitude | Longitude |
---|---|---|
Northerly corner | [X] | [X] |
Easterly corner | [X] | [X] |
Southerly corner | [X] | [X] |
Westerly corner | [X] | [X] |
[Drafting note: Description of the On-site non-UKLCH Storage to be populated using information provided in the Producer’s application for a LCHA and to include the unique geographical coordinates of any On-site non-UKLCH Storage.]
(Description of Off-site non-UKLCH Storage)
The Off-site non-UKLCH Storage falls within the area delineated by the following grid references:
Corner Point ID | Latitude | Longitude |
---|---|---|
Northerly corner | [X] | [X] |
Easterly corner | [X] | [X] |
Southerly corner | [X] | [X] |
Westerly corner | [X] | [X] |
[Drafting note: Description of the Off-site non-UKLCH Storage to be populated using information provided in the Producer’s application for a LCHA and to include the unique geographical coordinates of any Off-site non-UKLCH Storage.]
Annex 3 (Modification Agreement)
Annex 4 (Project Commitments)
Part A: General Project Commitments
Delivery to the LCHA Counterparty of the following:
(A) a copy of a resolution of the Producer’s board of directors (or an equivalent management committee or body) to:
- (i) undertake the Project;
- (ii) approve the total financial commitments required to commission the Project (the “Total Project Spend”); and
- (iii) approve a timetable for undertaking the Project which demonstrates that the Facility can reasonably be expected to be Commissioned no later than the Longstop Date;
(B) a Directors’ Certificate certifying that:
- (i) the Producer has, or will have, sufficient financial resources to meet the Total Project Spend;
- (ii)any contract entered into and provided as Supporting Information pursuant to the Milestone Requirement Notice, in the reasonable opinion of the Producer by reference to the facts and circumstances then existing, is:
- (a) legal, valid and binding; and
- (b) entered into with one or more counterparties who are each able to perform their obligations under such contract;
- (a) legal, valid and binding; and
- (iii) the Producer has a leasehold or freehold interest in the Site and, if applicable, the site on which any Off-site Hydrogen Storage Infrastructure is located, or in each case a contract to obtain the same;
- (iv) the Producer has either: * (a) a leasehold or freehold interest in the land on which the Off-site Fixed Hydrogen Transport Infrastructure is located; or * (b) an easement over such land as is necessary to develop, construct, test, complete, commission, operate and maintain the Off-site Fixed Hydrogen Transport Infrastructure,
or in each case a contract to obtain the same;
-
(v) the (i) Site; and, if applicable, (ii) the site on which the Off-site Hydrogen Storage Infrastructure is located; and/or (ii) the site on which the Off-site Fixed Hydrogen Transport Infrastructure is located, is not subject to any covenants, restrictions, agreements, planning obligations, estate contracts, options, rights of way or other encumbrances which materially inhibit the use of such site(s) for the purposes of the Project;
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(vi) there are available to the Site and, if applicable, the site on which the Off-site Hydrogen Storage Infrastructure is located, such rights, easements and services as are necessary to undertake the Project and operate the Facility;
-
(vii) the Producer has identified all necessary consents to undertake the Project (the “Necessary Consents”); and
-
(viii) there is a credible strategy in place to obtain the Necessary Consents and the Necessary Consents are not subject to any condition for which there does not exist a plan to satisfy that condition, such that the Producer is not aware of any necessary consents which cannot be obtained or complied with,
((iii) to (vii), together the “Facility Requirements”); and
(C) Supporting Information evidencing (i) that the Producer has, or will have, sufficient financial resources to meet the Total Project Spend and (ii) the Facility Requirements.
Part B: Technology Specific Project Commitments
1. ELECTROLYTIC TECHNOLOGY
Delivery to the LCHA Counterparty of Supporting Information evidencing any one of the following:
-
(A) entry by the Producer into an engineering, procurement and construction contract for the Facility, providing for the supply and installation of the Material Equipment;
-
(B) entry by the Producer into an agreement for the supply of the Material Equipment;
-
(C) entry by the Producer into: (i) a framework agreement for the supply of the Material Equipment; and (ii) a binding purchase order for the Material Equipment.
For the purpose of this Part B, the following definition shall apply to this LCHA:
“Material Equipment” means such equipment in respect of the Project which, acting in accordance with a Reasonable and Prudent Standard, the Producer could reasonably be expected to have ordered and/or concluded a supply agreement in respect of, to enable the Facility to be Commissioned at the start of the Target Commissioning Window, and in any event, such equipment shall include:
(i) Electrolyser(s), which in turn shall include;
- (a) an electrolyser stack;
- (b) a dryer;
- (c) a deoxidiser;
- (d) a gas separator;
- (e) a water purifier; and
- (f) a purge gas system;
(ii) an electrical transformer; and
(iii) a hydrogen compressor (if applicable).
2. CCUS-ENABLED GAS REFORMATION TECHNOLOGY
Delivery to the LCHA Counterparty of Supporting Information evidencing any one of the following:
-
(A) entry by the Producer into an engineering, procurement and construction contract for the Facility, providing for the supply and installation of the Material Equipment;
-
(B) entry by the Producer into an agreement for the supply of the Material Equipment;
-
(C) entry by the Producer into: (i) a framework agreement for the supply of the Material Equipment; and (ii) a binding purchase order for the Material Equipment.
For the purpose of this Part B, the following definition shall apply to this LCHA:
“Material Equipment” means such equipment in respect of the Project which, acting in accordance with a Reasonable and Prudent Standard, the Producer could reasonably be expected to have ordered and/or concluded a supply agreement in respect of, to enable the Facility to be Commissioned at the start of the Target Commissioning Window, and in any event, such equipment shall include:
- (i) a reformer;
- (ii) a feed gas purification/treatment;
- (iii) a pressure swing adsorber;
- (iv) a water gas shift reactor;
- (v) an air separation unit (if applicable);
- (vi) an absorber column;
- (vii) a stripper column;
- (viii) CO2 compressors; and
- (ix) a hydrogen compressor (if applicable).
Annex 5 (Strike Price Inclusions)
No. | Category of cost |
---|---|
1. | [X] |
2. | [X] |
3. | [X] |
4. | [X] |
Annex 6 (Redacted Terms)
- [The following information from [the LCHA] shall have the underlined words redacted:
1.1 [X]] [footnote 35]
-
The Initial Capital Return Component set out in clause 7.5 (Payment Calculations) shall be redacted in its entirety.
-
The Total Capex Payment set out in clause 7.11 (Payment Calculations) shall be redacted in its entirety.
-
The Total Project Pre-Commissioning Costs set out in clause 4.10 (Milestone) shall be redacted in its entirety.
-
Annex 5 (Strike Price Inclusions) shall be redacted in its entirety.
-
This Annex 6 shall be redacted in its entirety.
Annex 7 (Key Project Documents)
No. | Document description | Date | Document reference number |
---|---|---|---|
Applicable Connection Documents | |||
1. | [X] | [X] | [X] |
2. | [X] | [X] | [X] |
3. | [X] | [X] | [X] |
4. | [X] | [X] | [X] |
Applicable Planning Consents | |||
5. | [X] | [X] | [X] |
6. | [X] | [X] | [X] |
7. | [X] | [X] | [X] |
8. | [X] | [X] | [X] |
EXECUTION PAGE
The PRODUCER
SIGNED BY:
Print Name for and on behalf of [name of the Producer]
(Signature of named signatory)
The LCHA Counterparty
SIGNED BY:
Print Name for and on behalf of [LOW CARBON CONTRACTS COMPANY LTD]
(Signature of named signatory)
-
Note to Reader: Delete as applicable. This definition will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA. ↩
-
Note to Reader: Delete as applicable. This definition will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA. ↩
-
Note to Reader: Delete as applicable. This definition will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA. ↩
-
Note to Reader: Delete as applicable. This will only be relevant for Electrolytic Facilities that are awarded a LCHA. ↩
-
Note to Reader: Delete as applicable. ↩
-
Note to Reader: Delete as applicable. This will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA. ↩
-
Note to Reader: Delete if no hydrogen transport infrastructure for the Project is subsidised via the LCHA (i.e. there is no Hydrogen Transport Infrastructure). ↩
-
Note to Reader: Delete if no hydrogen storage infrastructure for the Project is subsidised via the LCHA (i.e. there is no Hydrogen Storage Infrastructure). ↩
-
Note to Reader: This shall be any Electricity Storage System which will be subsidised via the LCHA as agreed between DESNZ and the Producer. ↩
-
Note to Reader: Clause to be retained only if specific amendments to the LCHA are agreed to be made. ↩
-
Note to Reader: Relevant Facility Hydrogen Production Technology to be selected. ↩
-
Note to Reader: Delete as applicable. ↩
-
Note to Reader: This date shall be set on a project-by-project basis and agreed during negotiations. ↩
-
Note to Reader: This shall be the date agreed during negotiations as the Producer’s “Target Commissioning Date” and will be a date falling within the Initial Target Commissioning Window. ↩
-
Note to Reader: Delete as applicable. ↩
-
Note to Reader: If applicable, this shall be notified to, and verified by, DESNZ on a project-by-project basis and shall refer to any funding provided to the Producer and/or its Affiliates from the Industrial Strategy Challenge Fund, Low Carbon Hydrogen Supply Competition, Hydrogen Business Research & Innovation for Decarbonisation (HyBRID) and Industrial Decarbonisation Challenge for development/pre-development expenditure incurred in respect of the Project prior to the Agreement Date. DESNZ is considering whether to refer to any other scheme(s) of funding. ↩
-
Note to Reader: Delete as applicable. The Initial Milestone Delivery Date will be: (i) for CCUS-Enabled Facilities, eighteen (18) months; and (ii) for Electrolytic Facilities, twelve (12) months, after the Agreement Date. ↩
-
Note to Reader: This shall be set on a project-by-project basis, agreed during negotiations and shall include development costs (e.g. pre-FEED and FEED costs and costs of obtaining a planning permission/environmental permit). ↩
-
Note to Reader: This shall be set on a project-by-project basis and agreed during negotiations. ↩
-
Note to Reader: This will represent the Facility’s forecast total hydrogen production volumes during the Term (i.e. forecast total Qualifying Volumes, Non-Qualifying Volumes and RTFO Volumes). ↩
-
Note to Reader: This shall be equal to the Post-Tax Real Discount Rate which shall be notified to, and agreed by, DESNZ on a project-by-project basis. ↩
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Note to Reader: Delete as applicable. This will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA. The Annual Carbon Cost Protection Cap will be agreed with DESNZ. It will be expressed in tCO2 and it will represent the estimated daily uncaptured carbon emissions (which will be calculated using the relevant capacity, the Assumed Load Factor and an emissions factor) multiplied by thirty (30). ↩
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Note to Reader: Delete as applicable. This will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA. ↩
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Note to Reader: Delete as applicable. This will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA. DESNZ proposes that the Eligible Emission Factor will be determined as part of the allocation of LCHAs to CCUS-Enabled Producers. The Eligible Emission Factor is intended to be equal to the CO2 each CCUS-enabled Producer is expected to generate and inject into the CO2 T&S Network for each MWh of hydrogen produced. ↩
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Note to Reader: This shall be a fixed £/MWh number, reflecting the portion of the Strike Price dedicated to the weighted average cost of capital. ↩
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Note to Reader: Delete as applicable. This will only be relevant for Electrolytic Facilities that are awarded a LCHA. ↩
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Note to Reader: Delete as applicable. This will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA. If applicable, this component of the Strike Price will be equal to the full Strike Price minus the Natural Gas Strike Price, being the cost of natural gas for each MWh (HHV) of hydrogen produced by the Facility which is included in the Strike Price. ↩
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Note to Reader: Delete as applicable. This will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA. This will be an agreed proportion of up to 1.15 MWh (HHV) of natural gas per 1 MWh (HHV) of Hydrogen, which shall be set on a project-by-project basis and agreed during negotiations. ↩
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Note to Reader: Delete as applicable. This shall be the agent notified to DESNZ in the Producer’s application for a LCHA as the Producer’s agent for service of process, where the Producer is not based in England/Wales. ↩
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Note to Reader: If no hydrogen transport infrastructure for the Project is subsidised via the LCHA, this should be deleted. ↩
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Note to Reader: If no hydrogen storage infrastructure for the Project is subsidised via the LCHA, this should be deleted. ↩
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Note to Reader: Applicable to CCUS-Enabled Facilities only. ↩
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Note to Reader: If no electricity storage system for the Project is subsidised via the LCHA, this should be deleted. ↩
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Note to Reader: Further detail on method of hydrogen production to be provided, beyond the distinction between Electrolytic and CCUS-Enabled. ↩
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Note to Reader: Redacted Terms are to be agreed on a project-by-project basis and the examples given are illustrative only. ↩