United Utilities has issued a Periodic Indicative Notice seeking supply chain input for sludge treatment services opportunities during AMP8 in the north of its region.
The water company currently produces over 200,000 dry tonnes (tDS) of wastewater derived sludge per annum.
United Utilities now has a need for sludge treatment services in Cumbria and Lancashire due to sludge growth and reconfiguration of its asset base.
The utility has previously issued PINs and conducted market engagement for short term and strategic solutions for the treatment services, enabling it to define the strategic sludge treatment service it wants to procure from the market.
United Utilities is now looking to outsource 45,000 tDS of sludge treatment capacity for a period of 20 years for sludge arising in the North of its region. Scope of services required from suppliers will be limited to the treatment of the raw sludge and the management of by-products from the treatment process.
The sludge is derived from a range of wastewater treatment works -the raw sludge is a mix of raw, thickened liquid and cake. The wastewater treatment processes vary and include biological and chemical phosphorus removal technologies.
The firm is asking suppliers to provide the outsourced sludge treatment service on a £/tDS gate fee basis over a 20 year operational period, with suppliers providing the financing required. United Utilities wants the operational period to commence before the end of AMP8.
United Utilities said it wants to give suppliers the flexibility to develop the most efficient solutions possible and therefore:
Will not specify the location or technology that the supplier must use. Suppliers can use their existing facilities, build new facilities, or use a combination of the two.
Whilst the supplier does not need to be co-located with United Utilities’ existing operations, they can use a plot within its Blackburn WwTW to develop a treatment facility.
The water company will deliver the raw sludge to the supplier and recycle BAS compliant digested sludges to land if an AD process is used. The cost of transport and recycling of sludges to land will be factored into the assessment of bids.
United Utilities is open to the supplier supplementing its sludge with other merchant feedstocks in order to achieve economies of scale.
In November the company will be hosting a supplier day to set out the details of the procurement and answer questions from potential suppliers. It currently expects to publish a formal contract notice at the start of September 2024.
Click here to access the Periodic Indicative Notice documentation.
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