Healthy interest for Manchester waste-derived fuel contract

The Authority received 17 expressions of interest for the contract to take up to 900,000 tonnes of SRF, which will be produced by mechanical biological treatment (MBT) plants under the UK's biggest-ever waste PFI contract (see letsrecycle.com story).

” It is clear that a number of potential bidders see the market opportunity. “
– Cllr Neil Swannick, GMWDA
The PFI contract, expected to be signed next year, will use MBT plants to treat waste left over after conventional recycling has taken place. The MBT process removes recyclable metals from mixed waste, dries remaining material and either composts or digests the biodegradable fraction.

A residue from the process can be burned as an SRF fuel, sometimes known as refuse-derived fuel.

The Authority revealed that interest in the fuel came from industrial concerns with “substantial energy demands” as well as both specialist power generators and “mainstream” power generators. Interest also came from waste management companies with energy-from-waste expertise.

As well as home-grown bids, there has also been interest shown by companies based in Western Europe and the United States of America, the Authority said.

Councillor Neil Swannick, chair of the GMWDA, said: “We are delighted by this substantial and international response. It is clear that a number of potential bidders see the market opportunity and share the authority's vision for a sustainable and high quality environmental solution that delivers a secure energy supply.”

The 17 bids will now be assessed by GMWDA, with several being taken forward for further negotiations.

PFI
While Manchester will be looking at the possibilities of a separate company being contracted specifically to handle the SRF, it has left the door open for one of the two remaining bidders for the larger PFI contract to handle the material themselves.

SITA UK and Viridor are both having their final proposals assessed for the provision of the MBT plants and other waste disposal services (see letsrecycle.com story).

GMWDA provides waste disposal services for 958,000 households in the borough's of Bolton, Manchester city, Oldham, Rochdale, Salford, Stockport, Tameside and Trafford.