¦SUPPLY/OFFTAKE AGREEMENTS
KEY COMPONENTS OF SUCCESSFUL MANURE SUPPLY AGREEMENTS The manure supply agreement is among the most heavily negotiated documents in a renewable natural gas project. BY CHRIS PETERSON
A
lthough each contract related to the development of a renewable natural gas (RNG) project is critical, the terms of the manure supply agreement will make or break the profitability of a project and the risk tolerance of its investors, lenders and other key stakeholders. Additionally, having an
agreement that will pass the scrutiny of the developer’s lender can be a challenge for the unwary. Successful manure supply agreements identify the big issues in the farmer’s supply of the feedstock and clarify each party’s rights and obligations. Some of the critical terms for the parties to agree upon include
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28 BIOMASS MAGAZINE | ISSUE 1, 2022
