The key parts of an EPC or engineering procurement and construction contract are turnkey terms where you say to the contractor, you need to develop this facility and then give us the keys when it's pretty much ready to go. There will be key deadlines in the contract, key quality requirements, prices and penalties if it's late or the design isn't to requirements. This all helps shift the construction risk from the special purpose vehicle to the contractor. The purchasing agreement. These with the raw material suppliers, they'll stipulate not just the price, but also the quality and quantity, and it's often on a put or pay basis. So you either give us the supply, or if you can't do that, you need to pay a penalty.

And this supply is unconditionally guaranteeing input or paying damages. Again, this structure helps shift the risk of supply problems away from the SPV and onto other stakeholders. In this case, suppliers.

The selling contract. Now the selling contract is most important where there are a few, or maybe even one key people that are gonna buy the output. And this is sometimes known in the oil industry, for example, as the offtaker. And this will be structured quite often as a take or pay, and this is where they must take the output or pay compensation. The contract will stipulate the prices or range of prices and the length of the purchase agreement. So again, this helps shift the risk to a third party and it reduces the risk to the SPV. Finally, operational maintenance contracts. These are the contracts with the entity that will provide ongoing maintenance. There will be a service level agreement, and this will involve penalties for non-service. This helps transfer operational risk problems away from the special purpose vehicle and again onto a third party.