Bioresources Collaboration Day 27 June 2018 DO NOT USE GUIDELINES - - PowerPoint PPT Presentation

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Bioresources Collaboration Day

27 June 2018

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Opening Address

Ben Roche

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Agenda

Timing 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

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Overview of Lots

Sam Evans Thomas 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

Thickening and Dewatering (2 of 3)

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

Thickening and Dewatering (3 of 3)

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 capacity Forecast 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:

• Site opening hours,
• Known site

constraints.

• Location,
• Average and forecast

sludge thresholds, Transport optional.

Provision of efficient sludge treatment capacity

LOT 2

• c

Provision and management of sludge treatment capacity

• f 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,
• Site opening hours,
• Known site constraints.

As part of the procurement exercise we will provide an indication of the £/tDs bidders will need to beat.

Provision of efficient sludge treatment capacity (2 of 4)

Service Requirements

• 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

Provision of efficient sludge treatment capacity (3 of 4)

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

Provision of efficient sludge treatment capacity (4 of 4)

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 capacity Forecast 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

Provision of efficient sludge treatment capacity

Indicative Procurement Approach 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 Lots

Continued Sam Evans Thomas 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

Service Requirements

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

Use of Biogas (2 of 3)

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

Use of Biogas (3 of 3)

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 capacity Forecast Gas 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

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

Indicative Procurement Approach 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
• rder to generate greatest value from

resources;

• Site with brand new STF
• Potential for excess gas/kWhs in times
• f 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
• Estimated annual gas volumes produced:

8,000,000 m3

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

• Estimated annual gas volumes produced:

6,500,000 m3

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

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Procurement

Darrell 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

• f 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

• perators.

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

Water

Waste

James Carr

Tender Registration & Participation

Tender Process - Suppliers Perspective

PIN

(optional)

Achilles

• r OJEU

Notice

Supplier Registration

(Ariba)

RFI

(formerly Qualification Stage / Selection stage)

RFI

Compliance

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 Security Human Rights Environmental Sustainability

Evaluation Criteria – Baseline Requirements RFI

Regulatory & Conflict

• f Interest

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Summary and Reflections

Ben Roche & Thomas Hall

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Open Forum Discussions

Thickening & Dewatering

• Boardroom, 2nd floor
• Blue dots

Provision of efficient sludge treatment capacity

• Ocean Room, ground floor
• Red dots

Use of Biogas

• Cedar Room, 1st floor (here)
• Green dots

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Lunch

Back at 13:30