bioresources collaboration day - yorkshire water · collaboration day 27 june 2018. do not use...

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Bioresources Collaboration Day

27 June 2018


Opening AddressBen Roche


AgendaTiming Topic Presenter

10:00 - 10:20 Opening Address Ben Roche

10:20 - 10:50 Overview of Lots Sam Evans & Thomas Hall

10:50 - 11:20 Networking Break

11:20 - 11:45 Overview of Lots continued

11:45 - 12:15 Procurement Darrell Griffith & James Carr

12:15 - 12:30 Summary and Reflections Ben Roche

12:30 - 13:30 Lunch

13:30 - 14:30 Open Forum Discussions

14:30 – 14:45 Break

14:45 - 16:00 Open Forum Discussions

Future Bioresources Business

Market Tested

Treatment

Capacity

Innovative

Biogas

Usage

Outcome Centred

Dewatering and

Thickening

Process

Focussed

Maintenance

Approach

Outsourced Northern Sites

Future Bioresources Business

Market Tested

Treatment

Capacity

Innovative

Biogas

Usage

Outcome Centred

Dewatering and

Thickening

Process

Focussed

Maintenance

Approach

Outsourced Northern Sites Use of Biogas

Dewatering &

Thickening

Efficient

Treatment

Capacity


Overview of LotsSam EvansThomas Hall

A - Thickening and Dewatering

Thickening and Dewatering (1 of 3)

Overview • Full outsourcing of thickening and dewatering services across the Yorkshire Water transfer sites

• Provision to be split into 2/3 lots based on geography – optional value for money variant bids considered

Service Requirements

• Provision of thickening and dewatering services for all YW sludges at transfer sites

• Option for service based contracts for minimum 15 years, VFM considered for longer

• Defined site areas within contract will be handed over to the supplier to manage for contract period

• Supplier will design, build, operate and maintain all assets (financing optional), including thickening & dewatering assets, and any buildings

Service Parameters…

• Operating standards will be set and applied, including Legal, Safety and environmental

• Stock movement: there will be SLAs around % full limit of the upstream first sludge reception tank and export tanks

• Transport of sludge to and from site to be organised by YW within pre-agreed parameters


Payment Mechanism

• We are looking for a payment structure that is based around minimum service standards and rewards outperformance

• Suppliers will be paid on a tDs input basis• Benefits of improved service / higher % sludge will be shared between YW and

the supplier• YW will be incentivised not to fail sludge quality / quantity commitments• Likewise the supplier will be incentivised to meet agreed parameters, for

instance providing daily minimum capacity

Sludge Quality • We will provide detail on the range of sludge types to be provided on a site specific basis

• We will require the sludge output to meet minimum % dry solids, dependent on the sludge input we provide

• Suppliers will need to work collaboratively with YW Ops to ensure the WWTW remains in compliance, for instance during incidents

…Service Parameters continued

• Contract will require self-reporting of Safety and Operational performance, including monitoring of the product and throughput

• Handback requirements to be discussed and agreed


Sludge Capacity

Standard Sludge Capacity• We will provide a commitment as to minimum quantities of sludge delivered

across the contract annually• We will provide a site specific window within which sludge levels are expected to

fall as a result of seasonal variation• The supplier will provide a commitment to have available capacity to treat the

site specific window of capacityForecast Sludge Increases• We will provide detail of any forecast sludge volume increases over the contract

including long term population growth projection and shorter term quality requirements

Incidents• We will require an emergency rate (cost/tDs) to be called upon in the event of an

incident, and for the supplier to work collaboratively with us to manage it

Thickening and Dewatering

Indicative Procurement Approach

Bidding thresholds

• It is anticipated that the pre-qualification threshold will be set at a low level during the RFI phase. During the RFP stage bidders shall be required to provide security packages which are commensurate with their technical solutions.

Timeline • First lot targeting late 2018

Thickening and Dewatering

LOTS

Site specific info to be provided including:

• Location,

• Average and forecast sludge thresholds,

• Site opening hours,

• Known site constraints,

• Installation criticality,

• Asset condition.

Total number of sites = 45

B - Provision of efficient sludge treatment capacity

Provision of efficient sludge treatment capacity (1 of 4)

Overview • Provision and management of efficient sludge treatment capacity from WWTW across the Yorkshire region - between 15k and 23k tDs

• To be split into 2 lots based on geography – optional value for money variant bids considered

Provision of efficient sludge treatment capacity

LOT 1

Harry providing map of sites

Provision of sludge treatment services for YW

Northern Sites - treatment capacity of circa

5.5k (by 2030) tDs

Site specific info to be provided

including:


• Known site

constraints.

• Location,

• Average and forecast

sludge thresholds,

Transport optional.


LOT 2

• c

Provision and management of sludge treatment capacity

of circa minimum 10k tDs to serve Yorkshire sites

Capacity can be provided by any method and

at any location and will be assessed on a

£/tDs basis.

Costs of transport should be taken into

consideration and bidders should assume

sludge will originate at Naburn.

Site specific info to be provided including:

• Location,

• Average and forecast sludge thresholds,


• Known site constraints.

As part of the procurement exercise we will

provide an indication of the £/tDs bidders

will need to beat.



• Receipt, treatment and recycling of up to 23k tDs Yorkshire Water sludges• Option for service based contracts for minimum 15 years, VFM considered for

longer• Type of treatment(s) utilised will depend on most economic on £/tDs basis• For solutions proposed on YW sites:

• Defined site areas will be handed over to the supplier to manage for contract period

• Land will be made available where appropriate as part of contract• Supplier will design and build all assets (operations, maintenance and

financing are optional), within defined site areas, including any buildings• For solutions not on YW sites, offers should be DBFOM


Service Parameters

• Operating standards will be set and applied, including Legal, Safety and environmental, e.g. Biosolids Assurance Scheme

• We are interested in efficient solutions that maximise use of resources• Stock movement: where treatment is provided on a YW site there will be

maximum allowed quantities of both raw and treated sludge on site• Import Availability - There will be minimum expectations with respect to opening

hours and import availability on a daily basis• Contract will require self-reporting of Safety and Operational performance,

including monitoring of the product and throughput. • Handback requirements to be discussed and agreed

Payment Mechanism

• We are looking for a payment structure that is based around minimum service standards and rewards outperformance

• Suppliers will be paid on a tDs input basis• Benefits of improved sludge quality will be shared between YW and the supplier

(reduced costs of sludge recycling / biogas opportunity)• YW will be incentivised not to fail sludge quality / quantity commitments• Likewise the supplier will be incentivised to meet agreed parameters, for

instance providing daily minimum capacity


Sludge Quality • We will provide detail on the range of sludge types to be provided on a site specific basis

• We will require the sludge output to meet minimum % dry solids and HACCP compliance

Sludge Capacity

Standard Sludge Capacity• We will provide a commitment as to minimum quantities of sludge delivered

across the contract annually• We will provide a site specific window within which sludge levels are expected to

fall as a result of seasonal variation• The supplier will provide a commitment to have available capacity to treat a site

specific window of capacityForecast Sludge Increases• We will provide detail of any forecast sludge volume increases over the contract


Incidents• We will require an emergency rate (cost/tDs) to be called upon in the event of an

incident, and for the supplier to work collaboratively with us to manage it



Bidding thresholds

• Bidding thresholds for both packages are to be set at a level which is commensurate with the strategic importance of the Lots. This is likely to include minimum turnover thresholds and the requirement for appropriate security.

Timeline • 2019 Procurement

Break

Back at 11:20

Overview of LotsContinued

Sam EvansThomas Hall

C – Use of Biogas

Use of Biogas (1 of 3)

Overview • Outsourcing of biogas management at 3 specified sites• To be split into 3 site-specific lots, in order to tailor the solution to site

requirements and to enable a staggered procurement approach


• Management of all biogas at specified sites in order to generate greatest value from resources

• Comply and operate within statutory legislation and permits• Option for service based contracts for minimum 15 years, VFM considered for

longer• Solution(s) utilised will depend on most economic on £/kWh Biogas basis• For solutions proposed on YW sites:

• Defined site areas will be handed over to the supplier to manage for contract period

• Land will be made available where appropriate as part of contract• Supplier will design, build, operate and maintain all assets (financing

optional), within defined site areas, including any buildings• For gas to grid solutions, supplier will arrange any offtake agreements


Service Parameters

• Operating standards will be set and applied, including Legal, Safety and environmental

• We are interested in the efficient use of biogas such as energy generation, gas to grid, gas to fuel. We encourage the exploration of circular economies and joint ventures

• Contract will require self-reporting of Safety and Operational performance• Handback requirements to be discussed and agreed

Payment Mechanism

• We are looking for a gas offtake agreement where service partners are paid on a £/kWh basis

• YW/downstream supplier will be incentivised not to fail gas quality / quantity commitments

• Likewise the supplier will be incentivised to meet agreed parameters, for instance providing daily minimum capacity


Quality • Parameters to be defined for gas quality• For each technology we will agree a level of output based on the sites capacity

Gas Capacity Standard Gas Capacity• We will provide a commitment as to minimum quantities of gas delivered across

the contract annually• We will provide a site specific window within which sludge levels are expected to

fall as a result of seasonal variation• The supplier will provide a commitment to have available capacity to treat a site

specific window of capacityForecast Gas Increases• We will provide detail of any forecast sludge volume increases over the contract


Use of Biogas

Bidding thresholds

• Minimum thresholds are likely to be set based upon the financial value of the contract with appropriate levels of security.

• PQQ Looking for experience of working with biogas, safety of biogas, interaction with energy/fuel markets/experience working with EA, regulatory bodies, understanding and delivering innovation


Timeline • Sites expected to be tendered separately to give commercial agility - tbc• First lot targeting Autumn 2018

Use of Biogas

LOT 1 - Knostrop

• Management of all biogas at Knostrop in order to generate greatest value from resources;

• Site with brand new STF• Potential for excess gas/kWhs in times

of peak production, plant maintenance, low energy demand

• Opportunities arising – Leeds Council developing compressed gas and hydrogen fuelling stations on adjoining land

• Estimated annual gas volumes produced: 12,100,000 m3

LOT 2 - Hull

• Management of all biogas at Hull in order to generate greatest value from resources;

• STF commissioned in 2007• Excess gas produced during increased

throughput, • Generation can exceed site electrical

demand, no ability to export electricity to get at least until 2023. This results in load curtailment.

• Site to gain extra sludge capacity


Use of Biogas

LOT 3 - BBM

• Management of all / unutilised biogas at Blackburn Meadows in order to generate greatest value from resources;

• Large STF with further capacity to unlock

• Single CHP – No resilience in event of maintenance or failure to beneficially utilise gas

• Large volumes of flared gas• Upcoming gas MCPD requirement on

CHP emissions


D – BAU Procurement

BAU Procurement

Service Contracts End Date

Cake Transport Contract March 2020

Biosolids Recycling Contract October 2019

CHP Maintenance Contract May 2019

Boiler Contract (maintenance and

repair of boiler system)

December 2018

Energy Supply Contract June 2022

Polymer Contract March 2020


ProcurementDarrell Griffith & James Carr

Utilities Contracts Regulations 2016

Principles of Procurement (Chapter 4, Regulation 36)

36.—(1) Utilities shall treat economic operators equally and without discrimination and shall act in a transparent and proportionate manner.

(2) The design of the procurement shall not be made with the intention of excluding it from the scope of these Regulations or of artificially narrowing competition.

(3) For that purpose, competition shall be considered to be artificially narrowed where the design of the procurement is made with the intention of unduly favouring or disadvantaging certain economic operators.

Procurement at YWS

• Customers – meet everyone’s needs

• Water Supply – enough safe water

• Environment – protect from pollution

• Transparency – global benchmark

• Bills – affordable as possible

• Health & Safety

• Ethics

• Resilience

• Environment

Health & Safety

Ethics

Resilience

Carbon

James Carr

Tender Registration & Participation

Tender Process - Suppliers Perspective

PIN (optional)

Achilles or OJEU Notice

Supplier Registration

(Ariba)

RFI

(formerly Qualification

Stage / Selection

stage)

RFICompliance

RFP

(formerly Award

Stage or ITT)

Alcatel (mandatory

standstill period)

Contract Signature

12 Month Process

Rules of Engagement

Bidder Agreement and NDA:

• The Bidding Entity/Joint Ventures

• Language & Document Format

• Confidentiality

• Submission Accuracy & Completeness

• Communication & Clarification

• Collusion, Fair Conduct

• Cost of Tendering & Termination

Financial &

Insurance

Health &

Safety

Information

SecurityHuman Rights

Environmental

Sustainability

Evaluation Criteria – Baseline Requirements

RFI

Regulatory

& Conflict

of Interest


Summary and ReflectionsBen Roche & Thomas Hall


Open Forum DiscussionsThickening & Dewatering

• Boardroom, 2nd floor

• Blue dots


• Ocean Room, ground floor

• Red dots

Use of Biogas

• Cedar Room, 1st floor (here)

• Green dots


Lunch

Back at 13:30

bioresources collaboration day - yorkshire water · collaboration day 27 june 2018. do not use...

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