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Oil, Gas & Renewable Energy production
Decommissioning and Restoration Bonds
Decommissioning bonds are often required to cover potential decommissioning costs in the energy industries when an asset comes towards the end of its useable life. Restoration bonds may be needed to secure the cost of returning land to its original state after completion of mining or quarrying activities. Both of these bonds could replace the requirement for a Letter of Credit (LOC) that would usually be issued by a bank and in turn free up the clients working capital.
Who are they for? Oil & Gas production companies, Renewable Energy companies, Mining companies, Quarries
Energy Bonds
The developer of an energy asset may be required to provide a Grid Connection bond in favour of the National Grid which guarantees the returning of the infrastructure to the correct condition post-connection of the asset to the grid. These bonds can also relate to guaranteeing the cost of installing and maintaining the connection of the assets should the Developer default.
Who are they for? Commercial and residential property developers.
Performance Bonds
Performance bonds guarantee that the Bonded Principal will undertake and fulfil their contractual obligations agreed with the Beneficiary. In the event of contractual default (usually via insolvency of the Principal), the Beneficiary will hold security in the form of the bond which will reimburse and pay out losses and damages up to the maximum bond amount.
Who are they for? Main Contractors, Sub-Contractors, Service Providers.
Public Grant
A surety bond for public funding is a guarantee that protects the funding provider (State, Region, etc.) by ensuring that the beneficiary company properly uses the funds or fulfils its contractual obligations, enabling the company to immediately receive an advance on the non-repayable grant. If the company fails to meet its commitments, the institution can enforce the guarantee and recover the funds from the guarantor, who undertakes to reimburse the amount.