Heat Supply Agreement

Description

QMU requires a supplier to operate and maintain its biomass energy centre including the supply of biomass fuel for a minimum period of 2 years and a maximum period of 4 years prior to its connection to the Millerhill Waste from Heat district heat network. The supplier who must be able to maintain the primary equipment of a Kohlbach K8-1500 biomass boiler and two ICI Caldaie 2.4 MW REX Boilers and also ancillary equipment. Lot 1: The QMU campus is currently heated through a district heating network (DHN) supplied by heat from a centralised energy centre. This contains a 1.5MW biomass boiler as the primary heat source and two back-up gas boilers. The energy centre and DHN system were installed and been operational since 2011. The contract is to operate, maintain the QMU energy centre and ensure the provision of heat (in the form of hot water) from the energy centre to the target PHX within the campus buildings. The contract will comprise of the following key elements: - Operation and optimisation of the plant within the energy centre, including but not limited to the Kohlbach K8 biomass boiler system, backup gas boilers, distribution pumps, pressurisation system and control systems - Provision of heat from the energy centre to met the operational demands of the campus, maintaining or exceeding the minimum Heat Provision Ratio. This is currently equated to biomass energy supplying of a minimum of 80% per annum (as measured at the energy centre heat meter). - Planned and reactive maintenance for the energy centre plant, to include all annual and intermediary service arrangements . This will include the need to attend site and undertake reactive maintenance within an agreed target response time (related to the category of alarm) - Supply biomass fuel to the biomass boilers. Fuel quality and standard to be maintained to meet the performance requirements of the biomass system and to keep compliant with local emissions regulations The client will provide water and electricity free issue, and will provide and maintain the structure of the energy centre. Gas will be metered and provided at a cost basis to the supplier. The cost for the contract will be split into two elements: - Combined p/kWh rate for heat metered leaving the Energy Centre (pro rata based on energy used) - Annual maintenance charge for the service and operation of the energy centre (fixed annual price) Additional information: The intention of QMU is to connect to the Millerhill Waste From Heat plant within a 2-4 year time frame. This district heat network is operated by Midlothian Energy Limited (a joint venture between Midlothian Council and Vattenfall Heat UK Ltd) as per contract award notice (Ref: NOV399732) and contract notice (Ref: JUN356897).