Hull planning new long-term waste contract after Impetus administration

Hull City Council has approved plans to procure a new long-term residual waste disposal contract worth around £56 million after its deal with impetus Waste Management was suddenly ended by the company’s administration last year.

Hull planning new long-term waste contract after Impetus administration
The contract with Impetus, operating under the name of Green North East Trading Bidco Ltd, was terminated in November due to the company’s ‘failure to perform the services required within the contract’ and subsequent entry into administration.

Hull City Council’s cabinet agreed on Monday (24 April) to begin the search for suppliers of an interim contract up to 31 March 2018 and then a long-term contract from April 2018 onwards.

The long-term contract will initially run for seven years, with the option to extend for three years and then a further two years after that, in order to bring the residual waste treatment contract into line with existing deals for the city’s organic waste, recycling and household waste recycling centres.

The council says it has already received 12 replies to a request for information from interested suppliers, including Amey, Andusia, Associated Waste Management, Biowise, Energy Works, Geminor, FCC, J&B Recycling, Suez, Tiru/Newlincs Development Ltd and Transwaste.

The council currently collects around 48,000 tonnes of residual waste a year and spends around £4.5 million annually on residual waste disposal.

Impetus collapse

Impetus was awarded a 10-year contract to dispose of Hull’s residual waste in April 2015. However in October last year, just one year into the contract, the company was put into administration, resulting in the loss of 73 jobs, citing ‘increasing difficulties’ brought on by market changes.

The company’s waste transfer stations in Teesside and Leeds were closed and the development on a new £10-million facility was halted. Impetus had previously sold the refuse-derived fuel (RDF) produced at the facilities to Air Products for use in its Teesside gasification plant, but the abandonment of two large Air Products incinerator developments made the sites ‘unsustainable’.

Impetus made its last collection of Hull’s waste on 28 October, and since then emergency disposal services have been provided mainly by Transwaste Ltd, which processes the waste into RDF that is then exported to Europe. A small proportion of the waste has been processed at the incinerator currently being commissioned in Wilton by the SITA Sembcorp consortium for the Merseyside and Halton Waste Partnership.

The budget pressure on the council resulting from the breaking of the Impetus contract is expected to be around £750,000 for 2017/18.

The council’s report into the procurement of interim and long term residual waste disposal contracts can be read on the Hull City Council website.

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