DO NOT USE – GUIDELINES ONLY

Bioresources Supplier Day

19 April 2018

DO NOT USE – GUIDELINES ONLY

Opening AddressBen RocheHead of Energy & Recycling

DO NOT USE – GUIDELINES ONLY

AgendaTiming Topic Presenter

10:00 - 10:15 Opening Address Ben Roche - Head of Energy and Recycling

10:15 - 10:30 Yorkshire Water Bioresources

Strategy

Sam Evans - Bioresources Readiness

Manager

10:30 - 10:45 Bioresources Markets Thomas Hall – Head of Markets

10:45 - 11:15 Networking Break

Biogas Opportunities Stall

11:15 - 11:30 Innovation in Bioresources Jon Brigg - Manager of Innovation

11:30 - 11:45 Sustainability and Resilience Mike Wynn – Strategic Asset Manager

11:45 - 12:00 Procurement Strategy Darrell Griffith - Manager of Procurement

12:00 - 12:10 Summary and Reflections

12:10 - 13:00 Lunch

Big Goals for Bioresources

• Decarbonisation - Utilise alternative solutions to building sludge

treatment facilities

• Maximise our production and potential of biogas

• Maximise the nutrient value in our sludges

Big Goals for Bioresources

• Being an upper quartile TOTEX performer

• Looking for the most efficient ways of delivering the Bioresources service

• Relying on the market and working with suppliers to deliver innovation and

our resilience needs

DO NOT USE – GUIDELINES ONLY

Yorkshire Water Bioresources StrategySam Evans

What is Bioresources?

Bioresources is

the transport,

treatment and

disposal

(recycling) of

sewage sludge.

TRANSPORT

TREATMENT

RECYCLING

What is Bioresources? – Ofwat Price Controls

The Financial Challenge

Bioresources Strategic Objectives

Treatment service - 100% treatment

of YW WWTW sludge

Biogas generation – maximising

sludge into AD and maximising value

from biogas

Recycling quality - All recycled sludge

meeting Biosolids Assurance Scheme

Financial efficiency - Most efficient in

AMP7

Resource recovery – best value for

bioresources

Regional contribution – developing

schemes that support community

ambitions

Sensitive operations – minimising

impact on customers near sites or

agriculture

Resilient Capacity – Guaranteed

treatment resilient to modelled events

Safe operations – Keeping colleagues

and customers safe from harm

Intelligent operations – activity

modelled and optimised every day

Future Bioresources Business

Market Tested

Treatment

Capacity

Innovative

Biogas

Usage

Outcome Centred

Dewatering and

Thickening

Process

Focussed

Maintenance

Approach

Outsourced Northern Sites

A New Bioresources Business

• Accountability and management of all Bioresources

spend in one team

• Organisationally and strategically aligned for an agile,

market-ready and resilient service

• Market testing of key services

– Capital delivery

– Key operational and

maintenance services

– Focused central services

DO NOT USE – GUIDELINES ONLY

BioresourcesMarket Led ApproachTom Hall

Yorkshire Water Approach to Working with Market

Working as advocates of markets

Developing procurement packages that work

Providing a route for different market players to influence our approach

Trying to understand and remove any perceived barriers to participation

Plans for next AMP

Outcome based

approach working

collaboratively with

the market

Increased use of

trading

Including O&M

with design and build

Different

contractual models

Plans for next AMP

Outsourcing thickening

and dewatering services

at specified sites

Improving efficiency of

sludge collection,

treatment and recycling

from sites in the North of

our region

Alternative market-based

approaches to rebuilding

our STF at York

Outsourcing biogas

management at specified

sites

Reflections & Questions – 5 mins

Break & Biogas Opportunities Stall

Back at 11:15

DO NOT USE – GUIDELINES ONLY

Innovation in BioresourcesJon Brigg

YW Innovation - Definition

Clear

Risk

Articulation

Opportunity

R&DINNOVATION

R&D Supply

Chain

Culture

In everyone’s gift

challenge the norm

Fill gaps in…..

Knowledge

Services

Technology

At market tech

Services

Servitisation

Principles

Resilience (Out)performance Growth

Aggregation

Resilience Great Customer Service Affordable Bills Ambition

Design /

Manufacture

Bioresources R&D Innovation

AD

Research

DO NOT USE – GUIDELINES ONLY

Sustainability and Resilience

Mike Wynn

Ageing

assets

Investor

confidence &

financeability

Government

& regulatory

change

Technological

change

People

and skills

Energy

costs

Population &

household

growth

Environmental

legislation

Changing

customer

profile and

expectation

Affordability

Climate

Change

Resource

costs and

availability1990 1995 2000 2005 2010

50

15

02

50

35

0

Phosphate rock price

Year

$/m

t

Resilience is a top priority

AMP6 Challenges – December 2015 Floods

AMP6 Capacity Picture

AMP7 Capacity

Resilience Modelling

DO NOT USE – GUIDELINES ONLY

Procurement StrategyDarrell Griffith

Procurement at YWS

Customer Expectations

Affordability Safety in design and

delivery

Strategic Change

TOTEX

Utilities Contracts Regulations 2016

Principles of Procurement (Chapter 4, Regulation 36)

36.—(1) Utilities shall treat economic operators equally and without discrimination and shall act in a transparent and proportionate manner.

(2) The design of the procurement shall not be made with the intention of excluding it from the scope of these Regulations or of artificially narrowing competition.

(3) For that purpose, competition shall be considered to be artificially narrowed where the design of the procurement is made with the intention of unduly favouring or disadvantaging certain economic operators.

Mobilisation

OJEU Tender Process Timeline

Publish

Opportunity

RFI

RFI

Compliance

RFP

Project

Closeout

Source and Negotiate

OLD

TERMINOLOGY

PIN OJEU Notice

/ Achilles

List

Qualification Selection Award Stage –

Compliance

Phase

Award Stage

- ITT

Standstill

Period

Contract

Signature

NEW

TERMINOLOGY

PIN OJEU Notice

/ Achilles

List

RFI RFI RFI

Compliance

RFP Standstill

Period

Contract

Signature

12 – 18 Months

Bioresources Indicative Procurement Timeline

Q1

2018/19

Q2

2018/19

Q3

2018/19

Q4

2018/19

Q1

2019/20

Q2

2019/20

Q3

2019/20

Q4

2019/20

Q1

2020/21

Biosolids Recycling

Dewatering & Thickening

Bioresources Transport

Efficient Treatment Capacity

Innovative Biogas Usage

DO NOT USE – GUIDELINES ONLY

Summary and ReflectionsBen Roche & Thomas Hall

DO NOT USE – GUIDELINES ONLY

Thank You

Lunch