Course 15 of 20 · Biofuels and SAF Desk Academy

SAF Offtake & Airline Procurement

Stage D, Fuel margin and customer claims. Level 7 of 10.

Offtake contracting with aviation buyers: volume and premium structures, blend limit handling, delivery points and buyer procurement process.

121 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 08, Course 12, Course 14

Enrol or enquire See the 121 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 121 chapters

Open any module for its full chapter list, in teaching order.

M0 What an Aviation Offtake Really Is Ch 1-10
  1. A Fuel Sale and an Attribute Sale in One Document
  2. Why an Aviation Buyer Pays Above the Jet Price
  3. Whose Seat Is This Clause Written From
  4. Who Is Actually Selling: Producer, Blender or Reseller
  5. Who Is Actually Buying: Carrier, Group or Corporate
  6. What the Agreement Must Settle Before Anything Else
  7. A Supply Commitment Signed Before the Plant Runs
  8. What Is Assumed Already and Not Repeated
  9. Where the Claim Leaves This Agreement
  10. The Mandate Landscape in Outline, Not in Detail
M1 The Aviation Buyer's Procurement Machinery Ch 11-21
  1. Inside an Airline Fuel Department
  2. The Sustainability Team and the Fuel Team Want Different Things
  3. The Annual Jet Fuel Tender and Where SAF Sits In It
  4. Reading a Request for Proposal From the Seller's Seat
  5. Prequalification: What a Carrier Checks Before Price
  6. How a Bid Is Scored When Price Is Not the Only Axis
  7. The Internal Approval Route for a Premium Commitment
  8. The Airport Fuel Consortium as a Third Party to Every Deal
  9. The Into-Plane Supplier Who Need Not Be a Party
  10. Selling Through a Fuel Supply Intermediary
  11. Joint Procurement by an Alliance or Group
M2 From Expression of Interest to Binding Offtake Ch 22-31
  1. The Memorandum of Understanding and What It Does Not Bind
  2. A Letter of Intent With Teeth
  3. The Term Sheet for an Aviation Offtake
  4. Exclusivity: Who Grants It and What It Costs
  5. Conditioning the Deal on a Final Investment Decision
  6. The Offtake the Lender Will Accept
  7. Confidentiality When Both Sides Want a Press Release
  8. Negotiating Order: What to Settle First
  9. Walking Away After the Announcement
  10. One Deal From First Contact to Signature
M3 Defining the Volume Ch 32-42
  1. Neat Litres, Blended Litres and Energy
  2. Volume, Mass and the Temperature It Is Measured At
  3. The Annual Contract Quantity and Its Schedule
  4. Take-or-Pay From the Carrier's Side
  5. Supply-or-Pay and the Mirror Obligation
  6. The Tolerance Band Around a Nominated Quantity
  7. An Option to Take More, Held by the Buyer
  8. A Right to Reduce, Held by the Producer
  9. Carrying Undelivered Volume Into the Next Year
  10. Nomination, Forecast and the Notice Calendar
  11. A Quantity Schedule Read Back for Direction
M4 Blend Limits and the Specification Chain Ch 43-53
  1. Two Specifications, One Fuel in the Wing
  2. The Blend Ceiling Lives in an Annex, Not in Your Contract
  3. Why Each Pathway Has Its Own Limit
  4. Qualifying a Pathway That Is Not Yet Listed
  5. Operating on Unblended Fuel as a Live Question
  6. Who Does the Blending, and Where
  7. Recertification After Blending, and Who Pays
  8. The Warranty the Producer Gives on Specification
  9. Jointly Operated System Requirements as a Contract Constraint
  10. A Blend Ratio the Airport Cannot Take
  11. Drafting the Blend Clause Without Fixing a Number
M5 Delivery Points and the Path Into the Wing Ch 54-65
  1. Every Delivery Point Is a Different Deal
  2. Sale at the Production Gate
  3. Truck, Rail and Barge Movements to a Blending Point
  4. Delivery Into a Multi-Product Pipeline
  5. Delivery Into the Airport Fuel Farm
  6. Delivery Into the Wing
  7. Segregated Delivery and What It Buys
  8. Contracting Volume to One Airport and Delivering at Another
  9. Title, Risk and the Point They Separate
  10. Measured Quantity Against Invoiced Quantity
  11. Who Holds the Storage and Throughput Rights
  12. Choosing the Delivery Point for the Position You Hold
M6 Price: The Index Leg and the Premium Leg Ch 66-77
  1. Two Legs, Priced Separately
  2. Choosing the Jet Fuel Reference
  3. The Pricing Window and the Days It Covers
  4. A Fixed Premium Per Unit
  5. A Premium That Escalates Against a Cost Index
  6. A Premium Expressed Per Tonne of Carbon Abated
  7. A Floor the Buyer Grants and a Ceiling the Seller Grants
  8. Linking the Premium to the Production Margin
  9. Pricing the Blend Against Pricing the Component
  10. The Premium Review Clause and Its Trigger
  11. What the Premium Does Not Cover
  12. One Premium Negotiated From Both Seats
M7 Attributes, Mandates and Who Gets the Benefit Ch 78-88
  1. The Attribute as a Separately Owned Thing
  2. Who the Obligated Party Actually Is
  3. ReFuelEU Aviation as a Contracting Backdrop
  4. The United Kingdom SAF Mandate and Its Buy-Out
  5. CORSIA Eligible Fuel as a Contract Deliverable
  6. Low Carbon Fuel Standard Opt-In for Jet Fuel
  7. United States Production Credits and Who Captures Them
  8. Stacking, Exclusivity and the Single Attribute Rule
  9. Drafting the Attribute Transfer Clause
  10. A Mandate Introduced Mid-Term
  11. Public Support Mechanisms and the Price They Set
M8 Term, Credit and the Conditions on Both Sides Ch 89-99
  1. How Long a Carrier Will Commit For
  2. Airline Credit Through an Industry Cycle
  3. Security the Carrier Gives and the Cost of Giving It
  4. Security the Producer Gives for Non-Delivery
  5. Conditions the Buyer Insists On Before Delivery Starts
  6. Conditions the Producer Insists On
  7. Commissioning Late and the Long-Stop
  8. Force Majeure on a Production Site and at an Airport
  9. Feedstock Failure That Is Nobody's Breach
  10. Assignment, Novation and a Carrier That Merges
  11. Ending It: Grounds, Direction and the Payment
M9 Running the Agreement After Signature Ch 100-110
  1. The Obligation Calendar Nobody Reads Until Year Two
  2. Monthly Scheduling Between Plant and Airport
  3. The Documents That Travel With a Parcel
  4. Invoicing a Two-Leg Price
  5. Reconciling Contracted, Delivered and Claimed Volume
  6. A Shortfall Notice and the Conversation After It
  7. Quality Rejected at the Receiving Point
  8. Reporting the Carrier Needs for Its Own Audience
  9. Audit and Inspection Rights, and Their Limits
  10. Amending a Live Offtake Without Reopening It
  11. Handing the Agreement to the People Who Will Run It
M10 Two Worked Offtakes and What They Cannot Do Ch 111-121
  1. The First Brief: A Producer Selling Into an Airline Group
  2. Choosing the Quantity Basis for This Plant, Part One
  3. Choosing the Quantity Basis for This Plant, Part Two
  4. Settling the Blend Point and the Delivery Location
  5. Pricing This Deal and Allocating the Attribute
  6. Years One to Three as They Actually Ran
  7. The Second Brief: A Carrier Running a Tender
  8. Scoring Four Offers That Are Not Comparable
  9. The Award, and the Clause the Carrier Should Not Have Conceded
  10. Reading a Signed Agreement Back for Inverted Direction
  11. What Offtake Contracting Cannot Do

The brochure gives each of these 121 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 15 of twenty

It stands alone, and it is also the entry point to the Biofuels and SAF Desk Academy pathway.

Enrol or enquire See the whole pathway