Preliminary Market Engagement - Materials Recovery Facility (MRF) 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. ***********Please read the attached UK2 PME notice in full. Your expression of interest should include answers to the questions within the notice (engagement process description section).*********** Keywords: Construction works for recycling station, Waste-treatment plant construction work, Materials Recovery Facility