At this stage of project development, it is difficult to be definitive – until further design and costing work is done, it is challenging to settle on a final price and to do so would potentially be to the detriment of all project participants. As of April 2022, we are busy working on a final ‘Basis of Design’ document that will confirm the engineered type, preferred location and scale of the plant, as well as cementing key commercial arrangements. In parallel with this activity, we are about to enter into a negotiation period with suppliers who have previously expressed interest through the EOI process that will give us the time to collectively negotiate the terms of any offtake arrangements. At the appropriate time, should the project be deemed viable and with considerable consultation along the way, an final offer price for cereal straw supply will be put to registered suppliers with full transparency and visibility of project costs. It should be remembered that this project is being developed in the region on a true partnership basis – all we can give at this stage prior to the negotiation is a commitment to offering ‘fair value’ for all parties.
In principle, there are two scenarios for straw supply here that will affect the income you might receive, namely where (i) you do the baling yourselves (i.e. you have your own equipment), or; (ii) you use our baling contractor (we will be able to leverage a sharp price based on volume). In both instances, the project entity itself will likely be organising the haulage in partnership with local contractors to achieve ‘economies of scale’ that keep transport costs to a minimum, thereby securing the maximum supplier margin.