In a statement yesterday (2 October), the council said it will seek permission to extend its current residual waste disposal contracts by a year, to the end of March 2025.
Essex is one of the largest councils across the country which still sends the majority of its waste to landfill.
This follows the failure of the Tovi Eco Park energy from waste plant (see letsrecycle.com story) and changes in the market for refuse derived fuel (see letsrecycle.com story).
This is sent to facilities across the area, including Enovert’s Bellhouse site.
Procurement
The procurement process for a new waste disposal contract has had many hurdles, much to the frustration of the bidders.
The tender for the disposal of 350,000 tonnes of residual waste annually was first launched in August 2022 in a bid to move away from landfill (see letsrecycle.com story).
The contract was initially valued at £62 million for the contract term and split into three lots of 200,000 tonnes, 100,000 tonnes and 50,000 tonnes. However, it was unexpectedly cancelled three months later due to “technical issues” which haven’t been specified.
When relaunched in December, the contract value increased to between £433.5 and £867 million (see letsrecycle.com story). The contract was set to commence on 1 April 2024 and run until 31 March 2031, with an option to agree an earlier services commencement between 1 October 2023 and 31 March 2024.
However, this was paused in May after the council said it received “no compliant bids” (see letsrecycle.com story).
I would like to thank potential bidders for the medium-term tender for their patience
- Councillor Peter Schwier, Essex council
‘Patience’
Commenting on the announcement yesterday, Essex councillor Peter Schwier, cabinet member for environment, waste reduction and recycling said: “We hope to continue working with our current waste disposal contractors in the short term, while we run our tender for medium-term arrangements in the new year.
“I would like to thank potential bidders for the medium-term tender for their patience and we look forward to further engaging with them in coming months. We will use the next few months to work with potential bidders to develop the final drafting and make the contract as appealing as possible, allowing sufficient time for a thorough procurement process.
“I would encourage all residents to have their say on the proposed longer-term plans for waste management in Essex by taking part in the current consultation.”
Bidders
Among those expected to bid, Belgian waste management firm Indaver says its 595,000 tonnes per year capacity Rivenhall EfW facility will begin commissioning in early 2025 and be fully operational by the end of the same year.
Meanwhile, Viridor in September 2022 agreed to acquire Thameside Energy Recovery Facility Ltd, the company which owns the rights to develop and construct a 350,000 tonne per year capacity EfW plant in Tilbury Docks, East London (see letsrecycle.com story).
Cory also has plans for a second facility in Belvedere, while several local suppliers could also bid for one of the lots for use in the RDF market.
Renewi, which is subject to a takeover bid from Beauparc (see letsrecycle.com story), will also be keeping an eye on the deal.
Renewi holds the East London Waste Authority Contract, up for renewal in 2027, which will also be appealing to a similar pool of bidders.
Waste strategy
Another potential hurdle for bidders is the fact that Essex has also launched a draft waste strategy.
A new long-term draft Waste Strategy for Essex was unveiled earlier this month by the Essex Waste Partnership and is currently out for consultation.
The Essex Waste Partnership comprises the county and 12 city, district, and borough councils working together to ensure cost-efficient and sustainable waste management in Essex. The consultation closes on 22 November 2023.
This sets aims of reducing waste by 10% by 2030, a 65% recycling rate by 2035 and a commitment to send zero waste to landfill by 2030.
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