Fuel Supply Agreement - Revision history

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			[[Category:Economics]]
	A [[Fuel Supply Agreement]] or [[FSA]] is the name generally given to the contract to supply an [[Energy from Waste]] facility with [[feedstock]].		A [[Fuel Supply Agreement]] or [[FSA]] is the name generally given to the contract to supply an [[Energy from Waste]] facility with [[feedstock]].

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Context

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	The nature of the [[Fuel Supply Agreement]] will be related to the design approach towards the [[Energy from Waste]] facility in the following key areas:		The nature of the [[Fuel Supply Agreement]] will be related to the design approach towards the [[Energy from Waste]] facility in the following key areas:
	# The '''Technology''' of the facility's Kiln/Furnace/Reactor and Boiler. As an example a [[Fluidised Bed]] would require a smaller and more uniform particle size than a [[Grate]], and fuel with more Chlorine would require a more robust metallurgy to protect against corrosion by acidic gases. Additionally, the nature of the technology may directly relate to the waste fuel in question i.e [[RDF]] vs [[Wood Waste]].		# The '''Technology''' of the facility's Kiln/Furnace/Reactor and Boiler. As an example a [[Fluidised Bed]] would require a smaller and more uniform particle size than a [[Grate]], and fuel with more Chlorine would require a more robust metallurgy to protect against corrosion by acidic gases. Additionally, the nature of the technology may directly relate to the waste fuel in question i.e [[RDF]] vs [[Wood Waste]].
	# The approach taken towards the management of '''Emissions'''. As an example compliance with the [[Industrial Emissions Directive]] could ~~be by having~~ a tighter specification fuel with a lower [[Gate Fee\|gate fee]] income but requiring less controls, or a wider specification fuel may have a higher [[Gate Fee\|gate fee]] income but require more robust controls at greater cost.		# The approach taken towards the management of '''Emissions'''. As an example compliance with the [[Industrial Emissions Directive]] could require a tighter specification fuel with a lower [[Gate Fee\|gate fee]] income but requiring less controls, or a wider specification fuel may have a higher [[Gate Fee\|gate fee]] income but require more robust controls at greater cost.
	# The '''Operating Cost''' of the plant. As an example a fuel with high ash content and/or non-combustible element would result in more [[IBA]] to be managed. A fuel with more chlorine and heavy metals content would require more consumables and cost to manage emissions.		# The '''Operating Cost''' of the plant. As an example a fuel with high ash content and/or non-combustible element would result in more [[IBA]] to be managed. A fuel with more chlorine and heavy metals content would require more consumables and cost to manage emissions.
	# The '''Energy Content''' of the fuel. The technology will be designed for a [[Calorific Value]] ([[CV]]) range. Outside the range and the facility will not perform, but the lower the [[CV]] in the range the more fuel that can be received and the higher the [[CV]] the less fuel that can be received. Hence more [[Gate Fee\|gate fee]] income that may be realised for a low [[CV]] fuel than a higher [[CV]] fuel.		# The '''Energy Content''' of the fuel. The technology will be designed for a [[Calorific Value]] ([[CV]]) range. Outside the range and the facility will not perform, but the lower the [[CV]] in the range the more fuel that can be received and the higher the [[CV]] the less fuel that can be received. Hence more [[Gate Fee\|gate fee]] income that may be realised for a low [[CV]] fuel than a higher [[CV]] fuel.

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	# The '''Operating Cost''' of the plant. As an example a fuel with high ash content and/or non-combustible element would result in more [[IBA]] to be managed. A fuel with more chlorine and heavy metals content would require more consumables and cost to manage emissions.		# The '''Operating Cost''' of the plant. As an example a fuel with high ash content and/or non-combustible element would result in more [[IBA]] to be managed. A fuel with more chlorine and heavy metals content would require more consumables and cost to manage emissions.
	# The '''Energy Content''' of the fuel. The technology will be designed for a [[Calorific Value]] ([[CV]]) range. Outside the range and the facility will not perform, but the lower the [[CV]] in the range the more fuel that can be received and the higher the [[CV]] the less fuel that can be received. Hence more [[Gate Fee\|gate fee]] income that may be realised for a low [[CV]] fuel than a higher [[CV]] fuel.		# The '''Energy Content''' of the fuel. The technology will be designed for a [[Calorific Value]] ([[CV]]) range. Outside the range and the facility will not perform, but the lower the [[CV]] in the range the more fuel that can be received and the higher the [[CV]] the less fuel that can be received. Hence more [[Gate Fee\|gate fee]] income that may be realised for a low [[CV]] fuel than a higher [[CV]] fuel.

	IN the case where The nature of the to be supplied and the specification of the fuel required by the facility. In the case of a [[residual waste]] facility the specification can vary considerably dcould be quite through to a more refined specification of [[Waste Derived Fuel]] such as [[RDF]], or a very tight specification of an [[SRF]]. In the case of a [[Biomass Waste EFW]] it will also be aligned with the feedstock type - for example [[Wood Waste\|wood waste]].

	==Contractual Terms==		==Contractual Terms==

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New page

A [[Fuel Supply Agreement]] or [[FSA]] is the name generally given to the contract to supply an [[Energy from Waste]] facility with [[feedstock]].

==Context==
The nature of the [[Fuel Supply Agreement]] will be related to the design approach towards the [[Energy from Waste]] facility in the following key areas:
# The '''Technology''' of the facility's Kiln/Furnace/Reactor and Boiler. As an example a [[Fluidised Bed]] would require a smaller and more uniform particle size than a [[Grate]], and fuel with more Chlorine would require a more robust metallurgy to protect against corrosion by acidic gases. Additionally, the nature of the technology may directly relate to the waste fuel in question i.e [[RDF]] vs [[Wood Waste]].
# The approach taken towards the management of '''Emissions'''. As an example compliance with the [[Industrial Emissions Directive]] could be by having a tighter specification fuel with a lower [[Gate Fee|gate fee]] income but requiring less controls, or a wider specification fuel may have a higher [[Gate Fee|gate fee]] income but require more robust controls at greater cost.
# The '''Operating Cost''' of the plant. As an example a fuel with high ash content and/or non-combustible element would result in more [[IBA]] to be managed. A fuel with more chlorine and heavy metals content would require more consumables and cost to manage emissions.
# The '''Energy Content''' of the fuel. The technology will be designed for a [[Calorific Value]] ([[CV]]) range. Outside the range and the facility will not perform, but the lower the [[CV]] in the range the more fuel that can be received and the higher the [[CV]] the less fuel that can be received. Hence more [[Gate Fee|gate fee]] income that may be realised for a low [[CV]] fuel than a higher [[CV]] fuel.

IN the case where The nature of the to be supplied and the specification of the fuel required by the facility. In the case of a [[residual waste]] facility the specification can vary considerably dcould be quite through to a more refined specification of [[Waste Derived Fuel]] such as [[RDF]], or a very tight specification of an [[SRF]]. In the case of a [[Biomass Waste EFW]] it will also be aligned with the feedstock type - for example [[Wood Waste|wood waste]].

==Contractual Terms==
Contract terms broadly follow typical contractual arrangements for supply agreements, but there are several that are more specific to waste-related fuels:
* The '''duration''' of the contract, which could be as long as 15 years or more.
* The '''specification of the fuel''' (and the related testing to demonstrate compliance and actions to deal with non-compliant fuel). The key elements being:
** [[Calorific Value]] ([[CV]]) and associated [[Moisture Content]]
** Particle Size and Bulk Density
** Ash Content/Metals and Non-Combustible content
** Heavy Metal Content
** Chlorine and Sulphur content
** [[Biomass]] content (if the facility is relying upon some form of [[subsidy]])
* The guarantee of '''minimum tonnage''' (and the consequence for both parties of not delivering or receiving that tonnage, often on a 'take or pay' basis)
* The '''warranties and guarantees''' associated with the minimum tonnage guarantees and performance of both parties
* Increasing, the requirement for a '''market review''' at intervals to review the nature of the market in terms of the availability of tonnage and the associated gate fee