Research and analysis

Low Carbon Hydrogen Agreement: Front End Agreement (August 2023) (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]

[Note: This document is subject to the same 바카라 사이트渄isclaimer바카라 사이트� contained within the draft LCHA Standard Terms and Conditions published in August 2023.]

---

1. THIS AGREEMENT is dated [X] (the 바카라 사이트�Agreement Date바카라 사이트�) and made between:

   1. (1) [X], a company incorporated under the laws of [X] whose registered office is [X] and whose company number is [X] (the 바카라 사이트�Producer바카라 사이트�); and
   2. (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]^{[footnote 1]} (the 바카라 사이트�LCHA Counterparty바카라 사이트�).

BACKGROUND

(A) This Agreement is entered into following the applicable contract allocation or negotiation process established under or by virtue of the [EA 2023]^{[footnote 2]}.

(B) The Producer has satisfied the Eligibility Criteria.

(C) The LCHA Counterparty is [a company wholly owned by the UK 바카라 사이트]^{[footnote 3]} and is entering into this Agreement solely for the purpose of implementing the provisions of the [EA 2023]^{[footnote 4]}.

(D) This Agreement, together with the terms and conditions set out in [version [1] of the document entitled 바카라 사이트�LCHA Standard Terms and Conditions바카라 사이트漖 as at [insert date], constitute a 바카라 사이트�LCHA바카라 사이트�.

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. 1.2 In this Agreement and its recitals:

2. 摆바카라 사이트�Capture Plant바카라 사이트� means the part of the Facility described in Annex 1 (Description of the Facility), which:
   1. (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
   2. (B) includes all associated infrastructure required to integrate such assets within the Project;]^{[footnote 5]}

3. 摆바카라 사이트�CCUS-Enabled Gas Reformation Technology바카라 사이트� means technology which is installed or implemented pursuant to the UKLCH Programme and which produces hydrogen via gas reformation and utilises CO₂ Capture Technology;]

4. 摆바카라 사이트�CO₂ Capture Technology바카라 사이트� means technology which is installed or implemented pursuant to the UKLCH Programme and which:
   1. (A) captures some or all of the CO₂ or any substance consisting primarily of CO₂; and
   2. (B) temporarily stores, processes and exports CO₂ (or any substance consisting primarily of CO₂) for permanent storage and disposal [and/or utilisation]; or
   3. (C) carries out any other process which is preparatory or ancillary to limbs (A) and (B) of this definition;]^{[footnote 6] [footnote 7]}

5. 摆바카라 사이트�CO₂ T&S Network Delivery Point(s)바카라 사이트� means the point(s) of connection of the Capture Plant to the CO₂ T&S Network pursuant to the CO₂ T&S Connection Agreement as identified on the plan in Annex 1 (Description of the Facility);]^{[footnote 8]}

6. 바카라 사이트�Conditions바카라 사이트� means the terms and conditions set out in [version [1] of the document entitled 바카라 사이트�LCHA Standard Terms and Conditions바카라 사이트漖 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);

7. 摆바카라 사이트�Electrolytic Technology바카라 사이트� 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 9]}

8. 바카라 사이트�Eligibility Criteria바카라 사이트� means the eligibility criteria for hydrogen production projects entering the [applicable contract allocation or negotiation process established under or by virtue of [X]];^{[footnote 10] [footnote 11]}

9. 바카라 사이트�Facility바카라 사이트� means the Hydrogen Production Plant, [the Capture Plant]^{[footnote 12]}, [the Hydrogen Transport Infrastructure]^{[footnote 13]}, [the Hydrogen Storage Infrastructure]^{[footnote 14]} 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;

10. 摆바카라 사이트�HoldCo바카라 사이트� means [X];]

11. 바카라 사이트�Hydrogen Production Plant바카라 사이트� 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:
    1. (A) was taken into account by the Producer in determining the Initial Installed Capacity Estimate;
    2. (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
    3. (C) is described pursuant to paragraph [3(A)(i) of Part A (Initial Conditions Precedent) of Annex 1] (Conditions Precedent) to the Conditions,
12. 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:
    1. (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
    2. (ii) the agreement or determination of the Final Installed Capacity pursuant to Condition [7] (Final Installed Capacity);

13. 摆바카라 사이트�Hydrogen Storage Infrastructure바카라 사이트� 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;]

14. 摆바카라 사이트�Hydrogen Transport Infrastructure바카라 사이트� 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 to an Offtaker바카라 사이트檚 transport and/or storage network pursuant to the relevant Offtake Agreement;]

15. 바카라 사이트�Off-site바카라 사이트� means any land which is not On-site;

16. 바카라 사이트�Off-site Hydrogen Storage Infrastructure바카라 사이트� means the Hydrogen Storage Infrastructure which is Off-site;

17. 바카라 사이트�On-site바카라 사이트� means the land which falls within the Site;

18. 바카라 사이트�On-site Hydrogen Storage Infrastructure바카라 사이트� means the Hydrogen Storage Infrastructure which is On-site;

19. 바카라 사이트�*Service Agent바카라 사이트� has the meaning given to it in clause [9] (but only if Condition [89] (Agent for service of process) is expressed to apply to the LCHA in this Agreement); and

20. 바카라 사이트�Site바카라 사이트� means the land described in Annex 2 (Description of the Site).

2. AGREEMENT

The Producer

2.1 The Producer shall, as from the Agreement Date, comply with this Agreement (including the Conditions) as the 바카라 사이트淧roducer바카라 사이트� 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 바카라 사이트�LCHA Counterparty바카라 사이트� 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 2 (Modification Agreement).]^{[footnote 15]}

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 16]}

Facility Fuel

1. 3.3 The 바카라 사이트淔acility Fuel바카라 사이트� applicable to this LCHA shall be:
   1. (A) [Natural Gas;] and/or
   2. (B) [Refinery Off-Gas.]^{[footnote 17]}

4. CONDITIONS PRECEDENT AND MILESTONE

Interpretation

4.1 The 바카라 사이트�Initial Target Commissioning Window바카라 사이트� applicable to this LCHA shall be twelve (12) months, such period commencing on [X]^{[footnote 18]}.

4.2 The 바카라 사이트�Target Commissioning Date바카라 사이트� applicable to this LCHA shall be [X]^{[footnote 19]}.

4.3 The 바카라 사이트�Longstop Period바카라 사이트� 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 바카라 사이트�Longstop Date바카라 사이트�.

Initial Conditions Precedent

1. 4.4 The 바카라 사이트淎pplicable Connection Documents바카라 사이트� for the purposes of this LCHA are:^{[footnote 20]}

   1. (A) [a water connection [offer]/[agreement] signed by the Producer and the Water Licensed Operator;]
   2. (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]];]
   3. (C) [a private water extraction licence signed by the Producer and the Environment Agency;]
   4. (D) [an electricity grid connection [offer]/[agreement] signed by the Producer and the Electricity Transmission System Operator;]
   5. (E) [an electricity connection [offer]/[agreement] signed by the Producer and the Licensed Electricity Distributor;]
   6. (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]];]
   7. (G) [a natural gas connection [offer]/[agreement] signed by the Producer and the Gas Licensed Transporter;]
   8. (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]];]
   9. (I) [a CO₂ T&S Connection Agreement signed by the Producer and the relevant CO₂ T&S Operator;]
   10. (J) [a CO₂ T&S Construction Agreement signed by the Producer and the relevant CO₂ T&S Operator; and]

   11. (K) [a CO₂ T&S Code Agreement signed by the Producer and the relevant CO₂ T&S Operator,]

   12. as such documents are more fully described in Annex 7 (Key Project Documents).

2. 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:

   1. [X].]

Operational Conditions Precedent

4.6 [An 바카라 사이트淎pproved Scheme of Funding바카라 사이트� for the purposes of this LCHA means: [X].]^{[footnote 21]}

4.7 The 바카라 사이트淟CHS Agreed Version바카라 사이트� applicable to this LCHA is [X].

1. 4.8 [The following shall be added as an additional Operational Condition Precedent applicable to this LCHA after paragraph 7 of Part B (Operational Conditions Precedent) of Annex 1 (Conditions Precedent) to the Conditions:
   1. 摆飦琞.闭

Milestone

4.9 The 바카라 사이트淚nitial Milestone Delivery Date바카라 사이트� applicable to this LCHA shall be [eighteen (18) months]/[twelve (12) months] after the Agreement Date.^{[footnote 22]}

4.10 The 바카라 사이트淭otal Project Pre-Commissioning Costs바카라 사이트� applicable to this LCHA shall be 拢[X]^{[footnote 23]} per MW of the Installed Capacity Estimate.

1. 4.11 The 바카라 사이트淧roject Commitments바카라 사이트� applicable to this LCHA shall be the requirements provided for in:
   1. (A) Part A of Annex 4 (Project Commitments); and
   2. (B) the section of Part B 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 바카라 사이트�Initial Installed Capacity Estimate바카라 사이트� applicable to this LCHA is: [X]^{[footnote 24]} (expressed in MW (HHV)).

5.2 The 바카라 사이트�Initial LCHA Sales Cap바카라 사이트� applicable to this LCHA is [X] (expressed in MWh (HHV)).^{[footnote 25]}

6. CHANGES IN LAW

6.1 [The 바카라 사이트�Post-Tax Real Discount Rate바카라 사이트� applicable to this LCHA is [X]^{[footnote 26]}.]

7. PAYMENT CALCULATIONS

7.1 [The 바카라 사이트�Annual Carbon Cost Protection Cap바카라 사이트� applicable to this LCHA is [X] tCO₂.]^{[footnote 27]}

7.2 The 바카라 사이트�Base Year바카라 사이트� applicable to this LCHA is 2022.

7.3 [The 바카라 사이트�Capture Rate바카라 사이트� applicable to this LCHA is [X].]^{[footnote 28]}

7.4 The 바카라 사이트�Eligible Emissions Factor바카라 사이트� applicable to this LCHA is [X].^{[footnote 29]}

7.5 The 바카라 사이트�Initial Capital Return Component바카라 사이트� applicable to this LCHA is 拢[X]/MWh (HHV).^{[footnote 30]}

7.6 [The 바카라 사이트�Initial CCUS-Enabled Non-Variable Costs Strike Price바카라 사이트� applicable to this LCHA is 拢[X]/MWh (HHV).]

7.7 [The 바카라 사이트�Initial Electrolytic Strike Price바카라 사이트� applicable to this LCHA is 拢[X]/MWh (HHV).]^{[footnote 31]}

7.8 [The 바카라 사이트�Initial Non-Gas Strike Price바카라 사이트� applicable to this LCHA is 拢[X]/MWh (HHV)).]^{[footnote 32]}

7.9 [The 바카라 사이트�Natural Gas Cost Multiplier바카라 사이트� applicable to this LCHA is [X].]^{[footnote 33]}

7.10 The 바카라 사이트�Strike Price Inclusions바카라 사이트� applicable to this LCHA are described in Annex 5 (Strike Price Inclusions).

7.11 The 바카라 사이트�Total Capex Payment바카라 사이트� applicable to this LCHA is 拢[X].^{[footnote 34]}

8. NOTICES

1. 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:
   1. (A) in the case of the Producer:
      1. Address:
      2. Email address:
      3. For the attention of:
   2. (B) in the case of the LCHA Counterparty:
      1. Address:
      2. Email address:
      3. For the attention of:

9. AGENT FOR SERVICE OF PROCESS

[Condition [89] (Agent for service of process) shall not apply to this LCHA and there shall be no Service Agent.]/[Condition [89] (Agent for service of process) shall apply to this LCHA and the 바카라 사이트�Service Agent바카라 사이트� shall be [X] of [X].]^{[footnote 35]}

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 Producer바카라 사이트檚 application for a LCHA and to include the unique geographical coordinates of the Hydrogen Production Plant and [X].]

[Hydrogen Transport Infrastructure]^{[footnote 36]}

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 Producer바카라 사이트檚 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 and [X].]

[Hydrogen Storage Infrastructure]^{[footnote 37]}

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 Producer바카라 사이트檚 application for a LCHA and to include the unique geographical coordinates of the Hydrogen Storage Infrastructure and [X].]

[Capture Plant]^{[footnote 38]}

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 Producer바카라 사이트檚 application for a LCHA and to include the unique geographical coordinates of the Capture Plant, the CO2 T&S Network Delivery Point(s) and [X].]

Part B: Facility Hydrogen Production Technology

[Drafting note: Description of the Facility Hydrogen Production Technology to be populated using information provided in the Producer바카라 사이트檚 application for a LCHA.]^{[footnote 39]}

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 Producer바카라 사이트檚 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 Producer바카라 사이트檚 application for a LCHA and to include the unique geographical coordinates of any On-site non-UKLCH Storage and [X].]

(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 Producer바카라 사이트檚 application for a LCHA and to include the unique geographical coordinates of any Off-site non-UKLCH Storage and [X].]

Annex 3 (Modification Agreement)

[Blank]

Annex 4 (Project Commitments)

Part A: General Project Commitments

Delivery to the LCHA Counterparty of the following:

1. (A) a copy of a resolution of the Producer바카라 사이트檚 board of directors (or an equivalent management committee or body) to:
   1. (i) undertake the Project;
   2. (ii) approve the total financial commitments required to commission the Project (the 바카라 사이트�Total Project Spend바카라 사이트�); and
   3. (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;
2. (B) a Directors바카라 사이트� Certificate certifying that:
   1. (i) the Producer has, or will have, sufficient financial resources to meet the Total Project Spend;
   2. (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:
      1. (a) legal, valid and binding; and
      2. (b) entered into with one or more counterparties who are each able to perform their obligations under such contract;
   3. (iii) the Producer has a leasehold or freehold interest in the site where the Facility is based (the 바카라 사이트�Facility Site바카라 사이트�) or a contract to obtain the same;
   4. (iv) the Facility Site 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 the Facility Site for the purposes of the Project;
   5. (v) there are available to the Facility Site such rights, easements and services as are necessary to undertake the Project and operate the Facility;
   6. (vi) the Producer has identified all necessary consents to undertake the Project (the 바카라 사이트�Necessary Consents바카라 사이트�); and
   7. (vii) 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,
   8. ((iii) to (vii), together the 바카라 사이트�Facility Requirements바카라 사이트�); and
3. (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

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:

바카라 사이트�Material Equipment바카라 사이트� 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.

Annex 5 (Strike Price Inclusions)

No.	Description of category of cost	Price (拢/MWh (HHV) or pounds (拢))
1.	[X]	[X]
2.	[X]	[X]
3.	[X]	[X]
4.	[X]	[X]

Annex 6 (Redacted Terms)

1. [The following information from [the LCHA] shall have the underlined words redacted:

1.1 [X]]^{[footnote 40]}

1. Annex 5 (Strike Price Inclusions) shall be redacted in its entirety.

2. This Annex 6 shall be redacted in its entirety.

Annex 7 (Key Project Documents)

No.	Document description	Date	Document reference number
Applicable Connection Documents	听	听	听
1.	[X]	[X]	[X]
2.	[X]	[X]	[X]
3.	[X]	[X]	[X]
4.	[X]	[X]	[X]
Applicable Planning Consents	听	听	听
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)

1. Note to Reader: Counterparty details to be confirmed, as this remains subject to the LCCC being empowered through legislation to act as the counterparty and administer the LCHA.听鈫�

2. Note to Reader: Relevant legislation and method of allocating LCHAs to be confirmed.听鈫�

3. Note to Reader: Counterparty description to be confirmed.听鈫�

4. Note to Reader: Relevant legislation to be confirmed.听鈫�

5. Note to Reader: Delete as applicable. This definition will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA.听鈫�

6. Note to Reader: Delete as applicable. This definition will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA.听鈫�

7. Note to Reader: Definition subject to further review as the CO₂ T&S business model develops听鈫�

8. Note to Reader: Delete as applicable. This definition will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA.听鈫�

9. Note to Reader: Delete as applicable. This will only be relevant for Electrolytic Facilities that are awarded a LCHA.听鈫�

10. Note to Reader: Relevant legislation to be confirmed and to confirm how the Eligibility Criteria will be documented.听鈫�

11. Note to Reader: For CCUS-Enabled Facilities, please refer to the criteria on pages 84-88 of the Cluster Sequencing for CCUS Deployment: Phase 2 (Background and Guidance for Submissions) (November 2021). For Electrolytic Facilities, please refer to the criteria on pages 34-43 of the Hydrogen Business Model and Net Zero Hydrogen Fund: Electrolytic Allocation Round (Application Guidance Document) (July 2022).听鈫�

12. Note to Reader: Delete as applicable. This will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA.听鈫�

13. 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).听鈫�

14. 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).听鈫�

15. Note to Reader: Clause to be retained only if specific amendments to the LCHA are agreed to be made.听鈫�

16. Note to Reader: Relevant Facility Hydrogen Production Technology to be selected.听鈫�

17. Note to Reader: Delete as applicable.听鈫�

18. Note to Reader: This date shall be set on a project-by-project basis and agreed during negotiations.听鈫�

19. Note to Reader: This shall be the date agreed during negotiations as the Producer바카라 사이트檚 바카라 사이트淭arget Commissioning Date바카라 사이트� and will be a date falling within the Initial Target Commissioning Window.听鈫�

20. Note to Reader: Delete as applicable.听鈫�

21. 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.听鈫�

22. 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.听鈫�

23. Note to Reader: This shall be set on a project-by-project basis and agreed during negotiations.听鈫�

24. Note to Reader: This shall be set on a project-by-project basis and agreed during negotiations.听鈫�

25. Note to Reader: This will represent the Facility바카라 사이트檚 forecast total hydrogen production volumes during the Term (i.e. forecast total Qualifying Volumes, Non-Qualifying Volumes and RTFO Volumes).听鈫�

26. 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.听鈫�

27. 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).听鈫�

28. Note to Reader: Delete as applicable. This will only be relevant for CCUS-Enabled Facilities that are awarded a LCHA.听鈫�

29. Note to Reader: 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.听鈫�

30. Note to Reader: This shall be a fixed 拢/MWh number, reflecting the portion of the Strike Price dedicated to the weighted average cost of capital.听鈫�

31. Note to Reader: Delete as applicable. This will only be relevant for Electrolytic Facilities that are awarded a LCHA.听鈫�

32. 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.听鈫�

33. 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.听鈫�

34. Note to Reader: This is the total capital expenditure for the Facility (and associated facilities/equipment) which will be subsidised under the LCHA, as agreed between DESNZ and the Producer. Such capital expenditure may include capital expenditure incurred pre-Agreement Date in relation to long-lead items and will include capital expenditure incurred post-Agreement Date. It will not include development (i.e. pre-FEED and FEED) costs.听鈫�

35. Note to Reader: Delete as applicable. This shall be the agent notified to DESNZ in the Producer바카라 사이트檚 application for a LCHA as the Producer바카라 사이트檚 agent for service of process, where the Producer is not based in England/Wales.听鈫�

36. Note to Reader: If no hydrogen transport infrastructure for the Project is subsidised via the LCHA, this should be deleted.听鈫�

37. Note to Reader: If no hydrogen storage infrastructure for the Project is subsidised via the LCHA, this should be deleted.听鈫�

38. Note to Reader: Applicable to CCUS-Enabled Facilities only.听鈫�

39. Note to Reader: Further detail on method of hydrogen production to be provided, beyond the distinction between Electrolytic and CCUS-Enabled.听鈫�

40. Note to Reader: Redacted Terms are to be agreed on a project-by-project basis and the examples given are illustrative only.听鈫�