HYDROGEN PURCHASE AGREEMENT1

A Hydrogen Purchase Agreement (HPA) is a legal contract between two parties involving the sale and purchase
of hydrogen gas. Hydrogen is a versatile energy carrier that can be used as a clean fuel in various applications,
such as powering vehicles, generating electricity, and supporting industrial processes. HPAs are typically used
when a company or entity wishes to procure a consistent supply of hydrogen for their operations.

Here are some key points that might be included in a Hydrogen Purchase Agreement:

1. Parties Involved: The agreement will identify the buyer (purchaser) and the seller of the hydrogen.
These parties could be companies, governments, or other entities.

2. Quantity and Specifications: The agreement will specify the quantity of hydrogen to be purchased
over a certain period, often expressed in terms of volume (e.g., cubic meters or gallons) or mass (e.g.,
kilograms or pounds). The specifications of the hydrogen, such as its purity level, quality standards,
and any special requirements, will also be outlined.

3. Delivery Terms: The agreement will detail how and where the hydrogen will be delivered. This could
include information about transportation methods (pipeline, truck, ship, etc.), delivery points, delivery
frequency, and any associated delivery costs or responsibilities.

4. Price and Payment Terms: The pricing structure for the hydrogen will be outlined, including the unit
price per volume or mass of hydrogen. The agreement may also detail the payment terms, such as the
frequency of payments, currency, and any penalties for late payments.

5. Term and Termination: The duration of the agreement will be specified, including the start and end
dates. Additionally, the conditions under which either party can terminate the agreement (due to breach,
force majeure, etc.) will be outlined.

6. Warranties and Representations: Both parties may provide certain assurances regarding their ability
to fulfill their obligations under the agreement. This could include warranties related to the quality of
the hydrogen, compliance with regulations, and other relevant matters.

7. Liabilities and Indemnities: The agreement will allocate responsibilities for any potential losses,
damages, or liabilities that might arise from the purchase and sale of hydrogen. Indemnification clauses
may also be included to protect one party from certain legal claims.

8. Governing Law and Dispute Resolution: The agreement will specify the jurisdiction's laws that will
govern the contract and how any disputes will be resolved (e.g., through arbitration or litigation).

9. Confidentiality: If applicable, the agreement might include provisions related to the confidentiality of
proprietary information shared between the parties.

10. Force Majeure: This section outlines circumstances beyond the control of either party that may affect
their ability to fulfill their obligations, such as natural disasters, strikes, or regulatory changes.

It's important to note that the specifics of a Hydrogen Purchase Agreement can vary widely based on the parties
involved, the location, the scale of the transaction, and the intended use of the hydrogen.

HYDROGEN SALE AGREEMENT2

1
https://estudiolegalhernandez.com/hydrogen-purchase-agreement-hpa/

2
https://www.bmwk.de/Redaktion/DE/Downloads/h2global/draft-term-sheet-hpa-market-consultation-h2global.pdf?
A hydrogen sale agreement is a legal contract between two parties, typically a hydrogen producer and a
hydrogen consumer, outlining the terms and conditions under which hydrogen will be supplied and purchased.
Hydrogen is a versatile and clean energy carrier that can be used in various industries, including transportation,
power generation, and industrial processes. As the world moves towards decarbonization and sustainable energy
solutions, hydrogen has gai ned attention as a potential alternative to traditional fossil fuels.

A hydrogen sale agreement typically includes the following key elements:

1. Parties Involved: The agreement should clearly identify the hydrogen producer (seller) and the
hydrogen consumer (buyer). This could be companies, governments, or other entities involved in the
production, distribution, or consumption of hydrogen.

2. Quality and Specifications: The agreement should define the quality and specifications of the
hydrogen to be supplied. Hydrogen can be produced through various methods (e.g., electrolysis, natural
gas reforming) and may have different levels of purity, moisture content, and impurities. The agreement
should outline the required quality standards to be met by the hydrogen producer.

3. Quantity and Delivery: The agreement should specify the quantity of hydrogen to be supplied, along
with the delivery schedule and location. This could include details about the frequency of deliveries,
volume per delivery, and any special requirements for transportation and storage.

4. Pricing: The pricing terms for hydrogen supply should be clearly outlined in the agreement. This could
include the pricing structure (e.g., fixed price, indexed to a certain market benchmark), payment terms,
and any penalties for non-compliance with the agreed-upon terms.

5. Term of Agreement: The agreement should specify the duration of the contract, including the start and
end dates. It could also include provisions for renewals or extensions if both parties are interested in
continuing the arrangement.

6. Force Majeure and Termination: Force majeure clauses outline circumstances under which one or
both parties are relieved of their obligations due to events beyond their control (e.g., natural disasters,
regulatory changes). The agreement should also detail conditions under which either party can
terminate the contract, including potential penalties or notice periods.

7. Liabilities and Indemnification: The agreement should outline the responsibilities of each party,
including liability for damages, losses, or accidents related to the hydrogen supply and consumption.
Indemnification clauses may also be included to protect both parties from potential legal actions.

8. Regulatory Compliance: As hydrogen production and distribution may be subject to regulatory

requirements and permits, the agreement should address how both parties will ensure compliance with
relevant laws and regulations.

9. Confidentiality and Intellectual Property: If applicable, the agreement may include provisions
regarding the protection of sensitive information, trade secrets, and intellectual property related to the
hydrogen production process.

10. Dispute Resolution: Procedures for resolving disputes between the parties, such as through
negotiation, mediation, or arbitration, should be included in the agreement.

11. Governing Law: The agreement should specify the jurisdiction whose laws will govern the
interpretation and enforcement of the contract.

It's important for both parties to carefully review and negotiate the terms of a hydrogen sale agreement to ensure
that their interests are protected and that there is a clear understanding of the rights and obligations of each
party.

HYDROGEN POWER PURCHASE AGREEMENT

A Hydrogen Power Purchase Agreement (PPA) is a contractual agreement between a hydrogen producer and a
consumer, typically an energy company or an industrial entity, where the consumer agrees to purchase a
specified quantity of hydrogen at an agreed-upon price over a defined period of time. PPAs are commonly used
in the energy industry to facilitate the purchase and sale of electricity generated from renewable sources, such as
solar, wind, and hydro power. However, the concept can be extended to hydrogen as well.

Hydrogen is considered a clean and potentially renewable energy carrier when produced using sustainable
methods, such as electrolysis powered by renewable electricity or through other low-carbon methods. A
Hydrogen PPA can play a crucial role in enabling the growth of the hydrogen economy by providing a
predictable revenue stream for hydrogen producers and offering a stable supply for consumers seeking to
integrate hydrogen into their energy mix or industrial processes.

Key components of a Hydrogen PPA might include:

1. Quantity and Quality: The agreement will specify the quantity of hydrogen to be supplied over the
contract term, as well as the quality standards the hydrogen must meet.

2. Price and Payment Terms: The price structure of hydrogen can be fixed or variable, depending on
market conditions and the preferences of the parties involved. Payment terms, such as the frequency of
payments, invoicing procedures, and penalties for non-compliance, will also be outlined.

3. Contract Duration: The duration of the agreement will be defined, which could range from a few
years to several decades. Longer contract terms provide stability for both the producer and consumer.

4. Delivery Terms: The PPA will outline the terms of hydrogen delivery, including transportation
logistics, storage arrangements, and responsibility for delivery costs.

5. Force Majeure and Termination Clauses: These clauses address unexpected events that could affect
the ability to fulfill the agreement, such as natural disasters or regulatory changes. Termination clauses
will detail the conditions under which either party can terminate the agreement before its scheduled
expiration.

6. Environmental and Regulatory Compliance: The PPA might include clauses that require the
hydrogen producer to meet certain environmental and regulatory standards, ensuring the sustainability
and legality of the hydrogen production process.

7. Risk Allocation: The agreement will specify how risks associated with supply interruptions, price
fluctuations, and other potential challenges will be allocated between the parties.

8. Dispute Resolution: The PPA should outline procedures for resolving disputes that may arise during
the course of the agreement.

9. Renewal and Extension Options: Depending on the success of the arrangement, the PPA might
include options for extending or renewing the agreement.

As the hydrogen economy continues to develop, Hydrogen PPAs can play a pivotal role in driving investment in
hydrogen production infrastructure and facilitating the transition to cleaner energy sources. Keep in mind that
the specifics of a Hydrogen PPA can vary based on regional regulations, market conditions, and the preferences
of the parties involved.