Combined Heat and Power Engines

Description

This procurement relates to 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. The 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.
Objectives and Expected Outcomes
Effective utilisation of the biogas produced during the treatment of sludge, minimising flaring of gas, maximising electrical heat and power production
•	Securing Capacity: Ensure supply of CHP Engine requirement through AMP 8 and AMP 9
•	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
Procurement Approach: A competitive tender process will be undertaken to appoint a supplier capable of delivering the full scope. We anticipate awarding the contract to a single supplier but reserve the right to award to more than one supplier if it is deemed to deliver best value.
Background: Thames Water (TW) currently operates 47 Combined Heat and Power Engines (CHP) across 24 wastewater treatment sites. These engines vary in age, size and output, and many are approaching the end of their lifecycle (typically 20 years). 
Anticipated Requirements:
•	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
What we anticipate purchasing
TW 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.
Please note that that deadline for asking for access to the PSQ & submitting of the PSQ is 28th November 2025, at 10 am.