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Hydrogen Purchase Agreement Template for England and Wales

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Key Requirements PROMPT example:

Hydrogen Purchase Agreement

"I need a Hydrogen Purchase Agreement for a green hydrogen supplier in Manchester who will provide 1,000kg per day to our manufacturing facility, with delivery starting March 2025 and running for 5 years with an option to extend."

Document background
The Hydrogen Purchase Agreement is a specialized commercial contract used when establishing a formal relationship for the supply and purchase of hydrogen. This agreement, governed by English and Welsh law, is particularly relevant as the UK transitions toward a hydrogen economy. It covers essential elements including supply obligations, specifications, pricing mechanisms, delivery terms, and quality requirements. The agreement is crucial for businesses involved in hydrogen production, distribution, or consumption, and must comply with strict UK safety and environmental regulations. The document typically includes detailed technical specifications and may incorporate provisions for green hydrogen certification where applicable.
Suggested Sections

1. Parties: Identification and details of the contracting parties, including registered addresses and company details

2. Background: Context of the agreement, including purpose and high-level commercial intentions

3. Definitions: Defined terms used throughout the agreement, including technical specifications and industry terminology

4. Supply Obligations: Core obligations regarding hydrogen supply, including quantities, delivery schedule, and supply guarantees

5. Price and Payment: Pricing structure, payment terms, invoicing procedures, and price adjustment mechanisms

6. Quality and Specifications: Detailed hydrogen specifications, quality requirements, and compliance with industry standards

7. Delivery: Delivery terms, locations, transfer of title and risk, and transportation responsibilities

8. Safety and Compliance: Safety requirements, regulatory compliance obligations, and incident reporting procedures

9. Force Majeure: Events constituting force majeure and consequences thereof

10. Term and Termination: Duration of agreement, renewal provisions, and termination rights

11. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

12. Insurance: Required insurance coverage and minimum policy requirements

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

Optional Sections

1. Take-or-Pay Provisions: Minimum purchase obligations and compensation mechanisms for shortfall quantities

2. Carbon Credits: Allocation of environmental attributes and carbon credits from green hydrogen production

3. Technology License: Terms for use of proprietary technology and intellectual property rights

4. Export Controls: Compliance with export control regulations for international transactions

5. Storage: Terms relating to hydrogen storage facilities and responsibilities

Suggested Schedules

1. Technical Specifications: Detailed hydrogen specifications, quality parameters, and testing methods

2. Pricing Schedule: Detailed pricing mechanisms, calculations, and adjustment formulas

3. Delivery Points: Specification of delivery locations, facilities, and technical requirements

4. Testing Procedures: Quality testing protocols, sampling procedures, and certification requirements

5. Safety Procedures: Detailed safety protocols for handling, transfer, and emergency response

6. Form of Performance Security: Template for performance bonds, parent company guarantees, or other security instruments

7. Compliance Requirements: List of applicable regulations, permits, and compliance obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Dangerous Substances and Explosive Atmospheres Regulations 2002 (DSEAR): Key safety regulation governing the handling of dangerous substances including hydrogen, focusing on risk assessment and safety measures in the workplace

Control of Major Accident Hazards Regulations 2015 (COMAH): Regulations aimed at preventing and mitigating major accidents involving dangerous substances at industrial facilities

Pressure Systems Safety Regulations 2000: Regulations governing the safe design, manufacture, installation, operation, and maintenance of pressure systems, crucial for hydrogen storage and transport

Health and Safety at Work etc. Act 1974: Primary piece of legislation covering occupational health and safety in Great Britain

Environmental Protection Act 1990: Framework for environmental protection including waste management and control of emissions

Environmental Permitting Regulations 2016: Regulations governing environmental permits for industrial activities in England and Wales

Climate Change Act 2008: Principal legislation establishing framework for reducing greenhouse gas emissions, including amendments for net zero targets

UK Net Zero Strategy: Government strategy document outlining pathways to achieve net zero emissions by 2050, including hydrogen development

Carriage of Dangerous Goods Regulations 2009: Regulations governing the transportation of dangerous goods including hydrogen

Pipeline Safety Regulations 1996: Legislation governing the safe design, construction, operation, and maintenance of pipelines

Gas Act 1986: Primary legislation governing the gas industry, with potential application to hydrogen infrastructure

Energy Act 2013: Key legislation establishing framework for UK energy policy

UK Hydrogen Strategy 2021: Government strategy document setting out approach to developing a low carbon hydrogen sector

Sale of Goods Act 1979: Core legislation governing contracts for the sale of goods in England and Wales

Supply of Goods and Services Act 1982: Legislation governing contracts for the supply of goods and services

Unfair Contract Terms Act 1977: Legislation regulating unfair terms in contracts and limiting the extent to which liability can be excluded

ISO/TC 197: International standards for hydrogen technologies including production, storage, transport, measurement and safety

Competition Act 1998: Primary UK competition law prohibiting anti-competitive agreements and abuse of dominant market position

Enterprise Act 2002: Legislation governing market regulation and enterprise law in the UK

Weights and Measures Act 1985: Legislation governing measurement standards and trading requirements

Patents Act 1977: Primary legislation governing patent protection in the UK, relevant for hydrogen technology protection

UK GDPR: Post-Brexit data protection regulation implementing personal data protection requirements in the UK

Data Protection Act 2018: UK's implementation of data protection standards, working alongside UK GDPR

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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