As a general rule, enterprise agreements are negotiated after a feasibility study has been completed and before the construction of mines; they help assure producers that there is a market for the equipment they want to produce. This is an advantage for a number of reasons – it clearly means that the mining company does not have to worry about being able to sell its metal. The project includes the developer`s investments in existing district heating and water systems in the city of Klagenfurt (Austria) from 2014 to 2018. In the district heating component, the investments are linked to the remediation of the district heating system, the extension to new customers and a significant change in the heat supply. The latter includes the following key measures and is expected to result in a significant increase in the use of renewable energy (mainly on cogeneration): – the transformation of a large heavy-fired cogeneration plant in the city centre, i.e. at the end of its technical life, into a 120 MWth natural gas plant and a state-of-the-art boiler; The installation of a new high-load oil or gas or gas reserve (probably about 30 MWth) west of the city, including the connection to the grid; and – the installation of a network connection to a new biomass cogeneration plant (approximately 50 MWth) in the east of the city, which will in future become the basic heat supplier of the system (the biomass-cogeneration plant itself does not enter the scope of this operation, since it is implemented by a third party on the basis of a long-term agreement on the use of heat with the project proponent). Water-related investments, including the replacement of distribution pipes, will ensure the efficiency of the distribution system. New investments in the water treatment system will ensure compliance with European drinking water standards. The proponent also intends to carry out a cross-border project to reduce water loss in transportation systems.
While taketake agreements have many benefits for both producers and buyers, it is important to note that there are also risks associated with them. Offtake agreements are essential for many mining companies, especially those that focus on critical and industrial metals. Here`s why. We call the party that buys the product or service, the buyer. By offtake Agreement (engl. offtake – abnahme; engl. agreement – convention), experts designate a contract to purchase the particular art. Thus, in the case of a contract of taking or payment, the customer is required to pay, even if he has not received or has not yet received the contractually agreed delivery. In addition, an acquisition agreement facilitates the financing of producers to pass a project through the construction of mines. A lender or investor is more willing to finance a project if it is certain that companies are already lining up to buy the tons of metal it will produce. A taketake agreement is an agreement that a manufacturer hands over with a buyer. You agree to sell or buy a certain amount of future production.
An acquisition agreement is usually reached prior to the construction of a production facility. For the builder, the acquisition agreement is a guarantee of the economic future of the project.