Thames Water has gone out to tender with a major AMP8/9 contract for the supply, commissioning and maintenance support of Combined Heat and Power (CHP) engines across multiple Thames Water wastewater treatment sites to maximise engine availability / performance.

Thames Water currently operates 47 Combined Heat and Power Engines (CHP) across 24 wastewater treatment sites. The engines vary in age, size and output and many are approaching the end of their lifecycle (typically 20 years).

The contract will cover the replacement of end-of-life engines during AMP 8 with estimated 10 - 16 new engines (Estimated range between 100kW - 1500kW electrical output) expected to be installed within AMP 8 alone. Further new engines will be required for AMP 9.

At this stage no information has been made available with regard to the potential estimated total value of the contract. However, In AMP7 Thames awarded a contract with an estimated value of £19.92 million for the repair, maintenance and supply of parts and spares directly or on its behalf by its contractors for CHP engines across all manufacturers used on Waste Treatment sites, inc. Caterpillar, Cummins, Jenbache, MAN & MWM. Successful suppliers were N-ERGY Ltd, CooperOstlund Ltd, Clarke Energy Ltd, Edina UK Ltd, ABB Ltd. and Colchester Fuel Injection Ltd

Contract scope includes the provision of new CHP units and associated services to support operational efficiency and energy recovery, as well as spare parts stock holding and technical support.

Thames Water’s objectives and expected outcomes include effective utilisation of the biogas produced during the treatment of sludge, minimising flaring of gas,maximising electrical heat and power production as follows:

• Securing Capacity: ensure supply of CHP Engine requirement through AMP 8 and AMP
• Standardisation: promote consistency across the CHP estate to reduce complexity and improve asset availability
• Commercial Value: leverage volume-based incentives and long-term value through strategic sourcing
• Serviceability: ensure availability of cost-effective spare parts and technical support
• Efficiency & Sustainability: support energy recovery and carbon reduction goals by securing high-performance, low-emission CHP solutions
• Regulatory Changes: ensure compliance with evolving regulatory requirements
• Innovation: accommodate benefits from innovation

Thames Water intends to run a competitive tender process with the aim of appointing a supplier capable of delivering the full scope. The utility anticipates awarding the contract to a single supplier – however, Thames is reserving the right to award to more than one supplier if it is deemed to deliver best value.

Anticipated requirements are:

• Replacement of end-of-life engines during AMP 8 with estimated 10 - 16 new engines (Estimated range between 100kW - 1500kW electrical output) expected to be installed within AMP 8 alone. Further new engines will be required for AMP 9
• Specification: to be provided at PSQ
• Support innovation: We are always looking for ways to improve what we do, and welcome innovative ideas/solutions
• Compliance with evolving environmental regulations, especially around emissions to air (e.g. methane slip and possible carbon capture under the Industrial Emissions Directive)
• Integration of AMP 9 requirements, to leverage further standardisation and volume-based discounts: The engines on an additional 7 wastewater treatment sites planned to be upgraded in AMP 9

Thames Water is seeking to procure a comprehensive solution for CHP engines, which includes:

• Supply, installation, and commissioning of new CHP engines across the TW estate
• Ancillary components required for engine connection and operation
• Provision of spare parts to support ongoing maintenance
• Planned and reactive maintenance in line with the manufacturers O&M manual
• Technical support to ensure safe and efficient operation through the lifecycle of the asset

The procurement will cover both replacement of end-of-life engines and new installations to meet growing demand. The current aim is to award a single-source agreement to enable standardisation, improve serviceability, and reduce complexity across the estate.

Prices under the framework may be determined through one or more of the following mechanisms:

• Pre-agreed rate cards: Suppliers submit fixed or benchmarked rates for defined roles or services at the framework stage
• Scenario testing: Contracting authorities may model pricing across different service configurations to assess cost-effectiveness
• Negotiation levers: Prior to award, authorities may negotiate discounts, rebates, offshoring commitments, or payment profiling to optimise commercial outcomes

Award of contracts

Prices under this framework may be determined through one or more of the following mechanisms:

• Pre-agreed rate cards: Suppliers submit fixed or benchmarked rates for defined roles or services at the framework stage
• Scenario testing: Contracting authorities may model pricing across different service configurations to assess cost-effectiveness
• Negotiation levers: Prior to award, authorities may negotiate discounts, rebates, offshoring commitments, or payment profiling to optimise commercial outcomes

Deadline for asking for access to the Procurement Specific Questionnaire (PSQ) and submitting the PSQ is 10 am on 28th November 2025.

The procurement process includes multiple stages, with opportunities for clarification, negotiation, and refinement of award criteria before final contract award.

Stage 1 - tender notice publication which outlines the scope of requirements, procurement stages and timelines as set out in this article.

Stage 2 consists of a Pre-Specific Questionnaire (PSQ) notice – Thames Water is inviting suppliers to register their interest by completing an online form ( https://forms.office.com/e/pb0jdHXSdy) and provide their company name and contact details of two people from their organisation with whom the water company can correspond in order to gain access to the PSQ documents.

The nominated representatives will then be sent an invitation to access Thames Water’s Project SharePoint site and given access to the PSQ and related documents necessary to complete their initial submission and an exclusive document library in order to upload their responses accordingly.

Suppliers who successfully pass the PSQ stage, will then be given additional system access for the next stage of the process.

Suppliers are required to complete and submit the PSQ by the stated deadline following which there will be a clarification period with a defined timeframe window to allow suppliers to raise queries and Thames Water to provide clarifications.

The PSQ responses will be assessed and evaluated on a pass/fail basis against mandatory criteria, with successful suppliers then shortlisted and invited to the next stage. At Stage 3 for the Preliminary Tender Submission shortlisted suppliers will receive the full information pack with suppliers able to submit any clarification questions to the tender which Thames will answer. Suppliers will then submit bid submissions (technical and commercial proposals) at which point Thames Water will submit clarifications and questions to the supplier responses.

After the evaluation and assessment of submissions against published criteria, at Stage 4, the Negotiation Stage, shortlisted suppliers will receive invitations to negotiate and further information about the process. This will be followed by negotiations with suppliers to refine solutions and optimise value, with suppliers in turn able to submit revised bids following negotiation rounds.

Stage 5 will consist of the final evaluation and selection of final submissions, concluding with contract award at Stage 6, at which point successful and unsuccessful suppliers will be informed in writing of the outcome.

Current estimated start and end contract dates are 1 June 2026 to 30 May 2034 - estimated contract award decision date is 30 March 2026.