Scottish Water has gone out to tender with a contract for the supply of HVO Fuel and storage solutions to Scottish Water sites around Scotland worth an estimated £20 million in total.
HVO fuel - Hydrotreated Vegetable Oil - is a paraffinic bio-based liquid fuel originating from many kinds of vegetable oils, including rapeseed, sunflower, soybean and palm oil. HVO is a fuel which acts as an alternative for diesel with significant carbon emissions savings. It can be used in conventional diesel engines, pure or blended with fossil diesel (petrodiesel).
Scottish Water is seeking to decarbonise its capital programme and operations - in order to achieve this strategic objective the utility has set ambitious net zero ambitions.
Fuel is a major source of emissions for the company – this, coupled with the removal of the rebate on red diesel on 1st April 2022 means that a transition to HVO is now a viable proposition.
Scottish Water are now inviting suppliers to express their interest in tendering for supplying HVO fuel. Suppliers must be able to provide secure storage solutions for the fuel, including but not limited to fuel bowsers, with a system which allows the fuel to be traced to the user.
A digital purchasing solution should be in place for fuel to be ordered, or the supplier must show a willingness to develop one suitable for Scottish Water.
The successful supplier/s will be required to demonstrate a track record of fuel delivery, a clear audit trail for the fuel source, and be willing to grow fuel capacity in line with the growth of the framework.
Initial framework term is 4 years with four further annual extension options.
Scottish Water will be looking for supply initially within the Central Belt of Scotland and envisages that this will spread throughout other Scottish Water sites across Scotland.
The water company said continuity of supply is critical due to the reactive nature of its operations.
Time limit for receipt of tenders or requests to participate is 24th May 2022 – click here to access the tender documentation.
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