Thames Water tenders £70m biogas, biomethane contract

Thames Water tenders £70m biogas, biomethane contract

UK-based Thames Water has gone out to tender with several Lots worth £70 million (€78 million), covering biogas and biomethane.

Thames Water has 25 sites using anaerobic digestion processes, all of which produce more than 800 GWh of biogas. The firm said each site is unique and may require alternative solutions depending on their location, biogas composition, and energy usage.

In April 2019, the organisation pledged to achieve net-zero carbon emissions by 2030, underlining its commitment to mitigate climate change. It also set a target of reducing its AMP7 Embodied Carbon Emissions by 25%, compared to AMP6.

The company’s sourcing project covers the funding, supply, installation, operation, and maintenance of upgrading and compressing plants to produce biomethane, which is capable of being transported or injected into the grid. According to the firm, projects delivered under this framework need to not only help Thames Water towards its carbon target, but also ensure that its health and safety record is not compromised.

The contract has been divided into Lots and tenders may be submitted for all Lots. The maximum number of Lots that may be awarded to one bidder is four.

For Lot 1a, Thames Water is seeking suppliers to help it utilise biogas in an “optimum manner”, to improve its environmental performance and maximise the value of the biogas. The company said that depending on the site solution, it may need a combination of upgrading and compressing plants to enable it to transport the biomethane and inject it into the gas grid. Lot 1a covers all requirements, including ancillary equipment, such as grid entry units and basic fuel output.

Biogas produced from its AD plant contains siloxanes, carbon dioxide, hydrogen sulphide and methane. Thames Water said it needs an upgrading plant that can handle its biogas composition and its variants and produce biomethane that meets grid specifications.

The firm added that as a main contractor, the supplier will be expected to undertake principal design and principal contractor roles under CDM, and that the purchaser may be Thames Water Utilities Limited or another firm within the Kemble Holding Group, a parent of Thames Water. Lot 1a will be funded by the purchaser.

This lot is primarily aimed at EPC contractors or OEM entities that may be required to undertake the following works:

  • Design plant to maximise efficiency and achieve excellent value for money
  • Source plant from reputable suppliers
  • Undertake works on Thames Water operational sites to allow the existing AD plant to be integrated with the upgrading plant
  • Install upgrading and potentially compressor plant in line with TW process standards and relevant industry standards
  • Conduct commissioning
  • Operate and maintain the system after final handover/commissioning has ended
  • Guarantee a level of availability of the plant and conversion rate for the gas

The agreement value of £17.5 million (€19.5 million) provided in the tender document is a quarter of the estimated value of installing a plant on all 25 sites. Thames Water said it is currently unknown how this value will be split between Lot 1A, 1B and 3, as the funding operation and risk profile will be decided on a project by project basis.

Lot 1B will be funded by a third party. In addition to the scope of works outlined in Lot 1A, the bidder will also be responsible for the funding of the plants and ownership for 10-20 years through a contract and lease for the plant, which will process and enable the off-take of gas to the required specification, with ownership of the gas remaining with Thames Water.

At the end of the contract, the installation ownership would transfer to Thames Water or the installation would be removed. Suppliers would be expected to operate and maintain the facilities for the duration of the contract.

Lot 2 covers the sale of biomethane and requires suppliers to work closely with biogas plant and grid injection to generate and share value achieved. If the supplier is collecting biomethane from the site, it should consider whether storage is required.

Thames Water said the tender process will enable it to award an initial contract under the framework agreement for a specific site, with the opportunity to enter ‘mini competitions’ for other sites during the term of the agreement. It also said it reserves the right to invite Lot 1 and Lot 2 suppliers and/or Lot 3 suppliers to participate in mini competitions, depending on the specific business requirements for each project.

Lot no 3 allows bidders to apply to offer complete solutions for the sites, combining lots 1b and 2, giving bidder responsibility from the digester plant outlet to revenue generation from the sale of biomethane. Thames Water said it is looking to enter into a framework agreement with multiple providers.

The time limit for receipt of tenders or requests to participate is 22 June at midday. For more information, visit: https://www.thameswater.co.uk/about-us/our-suppliers/procurement

To speak with Powersystems, please contact us by...

Phone

01454 318000

Email

enquiries@powersystemsuk.com

Talk

Request a call back

Powersystems UK Delivering Greener Power Solutions

Planning Inspectorate approves Cory Riverside Energy second London energy from waste (EfW) plant

Planning Inspectorate approves Cory Riverside Energy second London energy from waste (EfW) plant

The Planning Inspectorate has approved Cory Riverside Energy’s plans for an energy from waste (EfW) plant Cory Riverside Energy’, with the capacity to process more than 800,000 tonnes per year based in Belvedere, south east London.

The plant will mean the construction of a second large EfW facility on the south bank of the river Thames for Cory. It will be developed alongside its existing facility which has a capacity of 750,000 tonnes of residual waste per year.

The proposal will be built next to Cory Riverside Energy’s existing plant Alongside the EfW plant, an anaerobic digestion facility with an annual waste throughput of up to 40,000 tonnes per annum of green and food waste is also to be constructed,  “enabling infrastructure for combined heat and power”.

This is thought to be significant as  Greater London Authority specifically mentioned the lack of offtake of heat from the plant in its response to the consultation on the proposed facility. “For the avoidance of doubt, an EfW facility that generates electricity only is not acceptable; it must also capture heat,” the GLA said.

Approved

In a letter today (09 April) approving the proposals, seen by letsrecycle.com, the Planning Inspectorate said: “The secretary of state as the decision maker under s103 and s104 of the Planning Act 2008 has decided that development consent should be granted and therefore has made an order”.

“Given the national need for the development, the secretary of state does not believe that this is outweighed by the development’s potential adverse impacts”

Planning Inspectorate

In a separate notice detailing its reasons, the Inspectorate added: “The secretary of state considers that there is a compelling case for granting development consent. Given the national need for the development… the secretary of state does not believe that this is outweighed by the development’s potential adverse impacts”.

Opposition

The plant was singled out for criticism by London mayor Sadiq Khan last year, who urged the government to reject the proposal as he said London doesn’t need another “archaic toxic polluting waste incinerator”.

This was criticised by the Environmental Services Association, which said the mayor was “ill-informed” Mayor Khan’s concerns had echoed a previous London Mayor’s views, those of Ken Livingstone, who was strongly opposed to the first plant, which was officially opened by the Princess Royal in 2o12

UK largest

It is thought that the plant, which had an initial 2024 operational aim, would be the second largest in the UK after the Viridor-owned Runcorn plant, which recently extended its capacity to more than one million tonnes.  However, combined, the two plants will have the capacity to process around 1.5 million tonnes of residual waste a year, larger than the Runcorn plant and even more than the huge AEB plant in Amsterdam. The decision comes two years after Cory Riverside Energy was sold to a consortium of investors

To speak with Powersystems, please contact us by...

Phone

01454 318000

Email

enquiries@powersystemsuk.com

Talk

Request a call back

Powersystems UK Delivering Greener Power Solutions

Fund launched to attract UK students in AD and energy-from-waste sectors

Fund launched to attract UK students in AD and energy-from-waste sectors

New fund launched to attract UK students in AD and energy-from-waste sectors

A new £2,500 (€2,800) prize fund aimed at attracting new talent in the anaerobic digestion (AD) and energy-from-waste (EfW) industries has been launched at the RWM exhibition in Birmingham, UK.

The Energy from Waste Innovation Fund is open to undergraduate and postgraduate university students in the UK completing a dissertation related to EfW or renewable energy technology and engineering.

The winner will receive a prize-fund of £1,000 (€1,120), with the two runners up receiving £750 (€840) each upon completion of their research, as well as 12 months of mentoring with the award founder, Privilege Finance.

Chris Winward, Privilege’s commercial director, said: “We’re keen to support new talent in the renewables and EfW sectors. With a growing focus on developing the UK’s circular economy, new and existing technologies that use waste materials to generate a sustainable source of energy, will become ever more important.

“To make sure the UK is at the forefront of this technology, we need to encourage, attract and retain fresh talent.”

To speak with Powersystems, please contact us by...

Phone

01454 318000

Email

enquiries@powersystemsuk.com

Talk

Request a call back

Powersystems UK Delivering Greener Power Solutions

GAP Organics and Keenan Recycling in AD partnership

GAP Organics and Keenan Recycling in AD partnership

GAP Organics and Keenan Recycling in AD partnership

GAP Organics and Keenan Recycling have partnered to turn food waste into usable gas in the North East of England.

The move is in response to the rising volume of food waste collected in the region and the gas will be used to supply power networks in the North East.

The food waste will be treated at Wardley Biogas, a new anaerobic digestion (AD) plant near Gateshead which is expected to open later this year. Wardley is a joint venture between GAP, renewable energy funding provider Privilege Finance and renewable energy developer EOS DevCo.

Food waste will also be supplied to an existing AD plant at High Hedley in County Durham.

GAP Organics

Keenan Recycling – which expanded into the North East last year – will be working alongside GAP Organics to collect food waste from its commercial clients in the region.

Paul Palmer, managing director of GAP Organics, said: “In these changing times and with businesses taking the time and trouble to offer food for recycling, we have to make sure we put that waste to good use.

“The government’s recent commitment to separate domestic food waste collections in England and Wales is already having an impact as businesses understand this will also become a legal requirement for them too.”

Mr Palmer added that he was keen to work with Keenan Recycling as food waste was at the core of their business. Keenan are Scotland’s largest food waste collection company.

Grant Keenan, managing director at Keenan Recycling, said: “When we launched our food waste collection service in 2010 it was our aim to ensure that people across the UK understood the importance of recycling food waste.

“We want to be able to advise business on how to reduce food waste as well as recycling it correctly and we’re really looking forward to seeing the greener future we can create in the North East with GAP Group.”

To speak with Powersystems, please contact us by...

Phone

01454 318000

Email

enquiries@powersystemsuk.com

Talk

Request a call back

Powersystems UK Delivering Greener Power Solutions

Foresight acquires anaerobic digestion plant portfolio

Foresight acquires anaerobic digestion plant portfolio

Foresight acquires anaerobic digestion plant portfolio

Foresight Group LLP has announced the acquisition of two large scale anaerobic digestion plants (‘AD’) as part of the sale of Strutt & Parker (Farms) Limited.

The Euston and Bay Farm plants are located in Thetford and Newmarket, UK. In combination, the plants will produce around 95 000 MWh of power per annum, which is the energy equivalent of powering 30 000 homes in the UK. Both plants are fully operational with remaining operating lives of 17 and 18 years respectively. On an annual basis, the portfolio will offset approximately 10 700 t of CO2 compared electricity generated from coal. Further investment in the sites will capture all of the CO2 which will be suitable for use in drinks manufacture.

Foresight has established a market leading position in AD having previously invested into 35 greenfield and operational AD plants across the UK and Europe. The transaction is a demonstration of Foresight’s ongoing appetite to aggregate operational AD assets. This acquisition consolidates Foresight’s strong market position in the UK and enables it to continue to export the team’s deep sector experience to Europe, Australia, North America and beyond.

The transaction is a continuation of the partnership between Foresight and Material Change Ltd and its parent company Heathpatch Ltd. As part of the deal, Material Change has entered into long term feedstock supply, digestate offtake, and management and maintenance services contracts, while Heathpatch are equity investors in the projects. Material Change now provides services to 7 AD sites and sources over 250 000 t of waste and grown crop feedstock to the plants and returns 300 000 t of organic matter to land from its composting and AD businesses.

To speak with Powersystems, please contact us by...

Phone

01454 318000

Email

enquiries@powersystemsuk.com

Talk

Request a call back

Powersystems UK Delivering Greener Power Solutions

Pin It on Pinterest