Preliminary Market Engagement - Food Waste Solution

Note this is a market testing exercise and not a full contract notice - procurement exercise and will help inform the council strategy for future procurement of this service.

Background

In 2013 the Local Authorities of Rhondda Cynon Taf (RCT), Merthyr Tydfil, and Newport City Councils came together to form the Tomorrows Valley hub (the hub). RCT as a lead authority for the hub procured the food waste treatment contract, awarded in November 2013 to Biogen UK Ltd with a duration of 15 years.

A 1MW AD facility was constructed under a Design, Build, Finance and Operate (DBFO) contract on a land owned by RCT at Bryn Pica. The facility has a capacity of 22,500 tonnes per annum and attracts Feed-in-Tarriff (Fit) that will continue until November 2033 (20 years from contract start date).

The facility benefits from an Environmental Permit issued by NRW (Natural Resources Wales) and planning permission for access, tipping, digestion and digestate output to PAS110 QP (Quality Protocol) standard.

Whilst the hub has an option to extend the contract for a further 10-year period in two 5-year extension periods, it would also like to consider alternative options for the treatment of its food waste from 15th November 2028 that may offer better overall value for money. These options include procuring a new Operation and Maintenance (O&M) contract for its existing facility or procuring a new merchant contract for the treatment of its food waste elsewhere.