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Thursday, August 06, 2015 4:48:56 PM
Actually, it was for 25 years, according to a BION press release on March 3, 2014. (see their website)
“The 25-year biomass feedstock supply agreement on the plant input is a complement to the 25-year offtake agreement already in place on the urea output with United Suppliers. This is a significant credit-enhancing step for funding of the plants,” said Bryan Kornegay, Jr., President and CFO of BioNitrogen. - See more at: http://www.bionitrogen.com/news/bionitrogen-signs-25-year-biomass-supply-agreements-with-bioresource-management-for-florida-plant/#sthash.p1KHESHc.dpuf
A couple of things concern me about this statement. One, it was made by BK.
Two, I don't understand how the biomass seller, or the urea buyer, could enforce the contract if BION goes bankrupt.. Remember, this is a company that has never produced a pound of product.
And, how could BION enforce the contract if the biomass seller, or urea buyer, went bankrupt?
The "contracts", whose existence is inferred by BK, seem more aspirational than enforceable.
There is a reason, I think, people don't have 25-year firm contracts with national gasoline producers to provide all their gasoline for the next 25 years. The reason: such a contract would not make any sense.
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