Biomethane Purchase Agreement

Concepts

• scorrier
• gaseous fuels
• corserv ltd
• biomethane purchase agreement
• provision of biomethane
• cornwall council processing agreement
• purchase of biomethane fuel
• fugitive biomethane
• cornwall
• loop' supply contract

Location

Scorrier

Description

Corserv Ltd requires a 'closed loop' supply contract for the provision of Biomethane over the next 5 years (with potential 2 year extension). The 'closed loop model' ensures that methane, captured in Cornwall, can be processed and used in Cornwall, delivering on the Climate Change policies adopted by the company by utilising a carbon neutral fuel source.

Total Quantity or Scope

Purchase of Biomethane Fuel as extracted and processed within the Cornwall Council Processing agreement. The Corserv group of companies as part of the processing methods will also be instructing slurry lagoon works to be undertaken on the Cornwall Council Farms, Bennamann Ltd are the only contractor capable of undertaking the works due to the integrated nature of the lagoon works and the final operator of capturing and processing fugitive biomethane, Bennamann Ltd are the only appropriate contractor to carry out this work.

Award Detail

CPV Codes

• 09120000 - Gaseous fuels

Indicators

Legal Justification

Corserv Ltd believes that it can enter into the purchase agreement with the economic operator using the negotiated procedure without prior publication of a contract notice pursuant to Regulation 32 (2) (b) (ii) and/or (iii) of the Public Contracts Regulations 2015 (SI 2015/102). This notice has been issued voluntarily The agreement can only be entered into with this particular economic operator on the basis that competition is absent for technical reasons and/or due to the protection of the economic operator’s patented technology. Corserv Ltd requires a 'closed loop' and 'end to end' solution. The 'closed loop model' ensures that methane, captured in Cornwall, can be processed and used in Cornwall. There are currently no public filling facilities in Cornwall for Biomethane and none that would meet the requirement for a closed loop, end to end solution. Nor are there are any known solutions that would work for small farm holdings, especially with zero venting of methane. Installing a new gas network is not an economically viable option. The 'end to end' solution ensures (1) compatibility between the operational elements, (2) a single safe and efficient control system (essential in handling such volatile gases), (3) an ability to deliver the whole scope of activity, (4) better value for money by avoiding doubling handling costs and ensuring a single design, development, operation and maintenance regime. In this regard the economic operator has developed patented technology that enables capture at source, processing and transport of the resultant biomethane, for delivery to the relevant storage facilities. Importantly this can be achieved on an economically viable basis, at small holdings, with zero venting of methane. The economic operator's patent pending technology also upgrades the biogas to biomethane and allows for the liquid cryogenic gas to be stored for longer periods of time and at a lower cost. There are currently no other alternative technological market solutions that would enable the sale of raw biogas from small scale farms, on a viable economic basis and meet Corserv Ltd's wider environmental objectives.