GPAs/BPAs

RES developed several concepts for the off-take and supply of biomethane. Gas Purchasing Agreements (GPAs) or Biomethane Purchase Agreements (BPAs) are gaining more and more attention since the beginning of 2022. For producers (and especially for new projects / projects under development), GPAs/BPAs ensure bankability and stable revenues. For consumers, GPAs/BPAs ensure stable costs.

The view of RES for what GPAs/BPAs entail is in short that these…

…are for minimally 5 years, but commonly starting at 10 years.

…are an upfront contractual agreement between a buyer and a seller for the exchange of an amount of biomethane from a renewable asset for an agreed price per MWh or a predefined price formula (in which RES can supply and/or aggregate for the buyer).

…enhance third-party funding sources, such as a bank in case of new projects.

…are a form of security and assures in case of a lacking governmental subsidy assurance to lenders.

…are an evidenced sourcing method that can lead to additionality and can be claimed as extra benefit by end consumer.

There is no one size sits all in the world of GPAs/BPAs. Because of this RES takes a full structured and tailored approach. Get in touch with RES to start the dialogue about GPAs/BPAs.