Materials Recovery Facility (MRF) design and build project - Lancashire Renewables

Description

Lancashire Renewables Limited (LRL) operates and manages two waste treatment facilities on behalf of its public sector shareholders. LRL is undertaking a strategic review of the Materials Recovery Facility (MRF) at Farington Waste Recovery Park, Sustainability Way, Leyland, PR26 6TB. The existing MRF was commissioned approximately 15 years ago. It processes dry mixed recyclables but is increasingly constrained by its design capacity, ageing infrastructure, process bottlenecks, variable output quality and limited ability to recover additional materials. LRL currently manages approximately 65,000 tonnes per annum of dry mixed recyclables, of which approximately 50,000 tonnes per annum can be processed at Farington; the balance is diverted off site. The existing plant operates at an estimated average throughput of approximately 16 tonnes per hour and does not currently target paper, card, cartons or flexible plastics as separate output streams. Changes to waste composition, end-market quality requirements and national policy initiatives, including Extended Producer Responsibility, the Deposit Return Scheme and Simpler Recycling, create a need for greater capacity, recovery, quality and flexibility. LRL has recently concluded an independent feasibility study assessing three strategic options: refurbishment of the existing MRF; construction of a new advanced MRF; and a hybrid solution combining a new MRF with redevelopment of the existing plant. The study identifies a new MRF as the most robust long-term option, while recognising the higher capital requirement and the need for further design and commercial validation. LRL is therefore undertaking preliminary market engagement to substantiate the feasibility study's principal cost, programme, technical and delivery assumptions before further developing a business case for its Shareholders. LRL's earlier high-level market understanding indicated a potential new-MRF cost in the region of £13-15m, whereas the independent feasibility assessment produced an indicative total project cost closer to £20m and a delivery period of approximately 3-4 years. The cost figures are not a budget, target price or statement of affordability. At this stage, LRL would like to formally engage with experienced MRF designers and builders, process-equipment integrators, principal contractors and organisations capable of turnkey, EPC or EPCM delivery. Consortium or supply-chain responses are welcome where the proposed team can demonstrate an integrated route to delivery. The indicative project requirements and outputs from a future MRF build project are to: • Provide a resilient facility capable of processing LRL's forecast dry mixed recyclables, currently considered to be broadly 64,000 to 67,000 tonnes per annum, subject to validation. • Enable full or materially increased on-site processing and reduce reliance on off-site diversion. • Improve recovery rates, output purity and revenue potential across plastics, ferrous and non-ferrous metals, glass and fibre streams. • Provide a credible approach to flexible plastics, cartons, paper and card, taking account of evolving collection systems, legislation and end markets. • Make effective use of the existing building shell and available site infrastructure where practicable, including existing power and utilities, while identifying upgrades if required. • Maintain safe, compliant and efficient operations and minimise interruption to the existing MRF during delivery and transition. • Include appropriate process control, data, automation, optical sorting, AI-enabled monitoring or robotics where technically and commercially justified. • Provide suitable redundancy, maintainability, access, storage and future flexibility. The purpose of this engagement is to obtain current market evidence sufficient to inform LRL's business case, preferred technical option, delivery strategy and any subsequent procurement. It is not a call for competition, invitation to tender or request for a developed design. The engagement is intended to operate in two stages: an initial, light-touch expression of interest followed by site visits and structured post-visit feedback from selected participants. More detailed market views will be sought only after participants have received further context. LRL intends to use the engagement to: • Test the likely total project cost and the principal components of that cost; • Understand what a proportionate, value-for-money technical solution would look like for the site; • Understand realistic project development and delivery timescales; • Identify the main technical, commercial, programme, operational, planning, permitting and interface risks; • Understand preferred contracting and risk-allocation models; • Identify information required from LRL to enable a future market to price and programme the project with confidence; • Ultimately, assess market capability, capacity and interest in a potential future procurement to build a new MRF at LRL's Leyland facility. The contract dates provided are indicative placeholders for system compliance purposes only. Actual contract dates will be determined upon completion of this PME exercise and will be subject to subsequent business case approval.