Award

Lined Rock Caverns

WALES & WEST UTILITIES LIMITED

This public procurement record has 1 release in its history.

Award

30 Dec 2025 at 15:52

Summary of the contracting process

Wales & West Utilities Limited has awarded a contract for the "Lined Rock Caverns" project, marking the completion of the award stage in the procurement process. This project, located in the UK regions of South West England and Wales, falls under the services category, specifically environmental engineering consultancy services. The project aims to develop a novel lined rock cavern hydrogen storage concept as part of efforts to support the UK's Net Zero targets by 2050. The contract term is set for 2 years, starting from 26th February 2026 to 25th February 2028, with a total contract value of £600,000. The procurement method utilised was a direct award to Environmental Resources Management Limited, reflecting the niche expertise required for this developmental work.

This tender represents significant opportunities for businesses operating within the environmental engineering consultancy sector, particularly those with experience in technical, regulatory, and developmental roles within energy storage projects. Companies specialising in hydrogen technology, subsurface evaluation, and strategic environmental assessment will find this project aligns with their expertise. Furthermore, businesses capable of integrating multidisciplinary engineering inputs and offering strategic consultancy services in early-stage concept development are well-positioned to benefit from this procurement opportunity, fostering growth through involvement in innovative energy solutions that aim to contribute to a sustainable future.

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Notice Title

Lined Rock Caverns

Notice Description

Overview The UK has an extensive network for the Transmission and Distribution of natural gas, delivering around 600TWh of gaseous fuel to Domestic, Commercial, and Industrial consumers, and almost 300TWh to generate power. In energy terms, the UK uses around three times more gas than electricity. Around 85% of households use gas as their primary source of heating. The UK has challenging and legally binding targets to reach Net Zero by 2050. In response to this the UK Government issued "The Ten Point Plan for a Green Industrial Revolution" at the end of 2020 to demonstrate its commitment to tackling greenhouse gas emissions. This set the UK's ambition to be amongst the leading countries investigating the use of hydrogen for industry and heating. This was followed by a dedicated Hydrogen Strategy in 2021 which set firm commitments around low carbon hydrogen production and trials. Wales & West Utilities is undertaking a major programme of change to support decarbonisation and deliver a Net Zero gas network. General Description of the Works (Project Summary) This project forms Phase 2 of an ongoing programme of works exploring the potential application of a novel lined rock cavern (LRC) hydrogen storage concept within WWU's network. Building on Phase 1 work, the project will provide early-stage, exploratory support to further understanding on the concept and to test its potential suitability within the network context. The work is developmental in nature and is intended to inform internal strategic understanding, rather than to progress delivery, implementation or commercial deployment. The scope requires the integration of specialist technical and regulatory expertise under the direction of a single consultant, with continuity of knowledge from previous phases being critical. Activities are focused on refining assumptions, and improving understanding of key constraints and uncertainties associated with the concept. The project is not intended to deliver investment-ready outputs, detailed design, or commercially deployable solutions. Any investigative activities and very limited in scale and undertaken solely to support early-stage concept testing and development. Scope of Contractors Work The Supplier will deliver Phase 2 of an ongoing programme of early-stage development work relating to a novel lined rock cavern hydrogen storage concept. The Supplier will provide technical and strategic support, drawing on specialist expertise where required, to further understanding of the concept and to test its potential suitability within WWU's network area. In particular, the supplier will: * Develop and refine regional subsurface understanding within previously identified areas of interest, using existing information and specialist interpretation of results * Support progressive narrowing of potential locations to inform conceptual understanding of where the lined rock cavern concept may be technically applicable * Provide high-level advisory input on surface, planning, and permitting context relevant to early-stage concept development * Test and refine key technical assumptions of the lined rock cavern concept through specialist analysis and interpretation * Undertake limited and targeted investigative activities, where necessary, solely to support early stage understanding of subsurface conditions in relation to the concept * Provide qualitative consideration of commercial and strategic factors relevant to the early-stage development of the concept * Integrate and synthesise specialist inputs into internal-facing briefing materials and reports All services will be delivered to support early-stage design and development, and to test suitability of the concept, rather than to progress delivery, implementation, or commercial deployment. Anticipated Total Cost of the Contract is PS600,000. Contract Term is two (2) years.

Procurement Information

Other research, experiment, study or development. Building on Phase 1 work, the project will provide early-stage, exploratory support to further our understanding of the lined rock caverns concept and to test its potential suitability within the network context. The work is developmental in nature and is intended to inform internal strategic understanding, rather than to progress delivery, implementation or commercial deployment. The scope requires the integration of specialist technical and regulatory expertise under the direction of ERM, with continuity of knowledge from previous phases being critical. Activities are focused on refining assumptions, and improving understanding of key constraints and uncertainties associated with the concept. The project is not intended to deliver investment-ready outputs, detailed design, or commercially deployable solutions. Any investigative activities and very limited in scale and undertaken solely to support early-stage concept testing and development. Environment Resource Management Ltd is the only supplier can deliver the complete range of specialist work required for this project, and this includes but is not limited to:' * Taking energy innovation from low Technology Readiness Level (TRL) to high TRL, including scale-up strategies and demonstration. * Comprehensive contractor safety management across all lifecycle stages (qualification, induction, execution, close out) and leadership engagement for safety culture. * Subsurface clearance procedures, including critical zones, excavation buffers, and authorisation protocols before ground disturbance. * Permit-to-work systems, daily site access controls, health & safety plans, RAMS and method statement requirements. * Tender documentation standards, including warranties, commissioning consultant lists, parking arrangements, and waste/recycling plans. * Underground civil engineering methods (bolting, shotcrete, concrete reinforcement), drilling, venting, and dewatering techniques. * Multidisciplinary engineering for injection and storage projects, including reservoir modelling, geophysical evaluation, drilling/completion programs. * EPC/EPCM roles, contracting strategies, procurement processes, and construction controls for time, cost, and performance. * Project lifecycle management from feasibility through commissioning, start-up, and operations, including O&M procedure development. * Commercial governance requirements, subcontractor qualification, and integration of safe practices into supplier management decisions. * Sustainability and inclusive design guidelines for new projects, including environmental performance and accessibility standards. * Monitoring systems, closure management, and long-term environmental protection measures for subsurface projects. * Regulatory compliance strategies and HSE protocols for energy storage facilities.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-05fe56
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/086493-2025
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
UK5 - Transparency Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Direct
Procurement Method Details
Direct award
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

71 - Architectural, construction, engineering and inspection services


CPV Codes

71313000 - Environmental engineering consultancy services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
£600,000 £500K-£1M
Contracts Value
Not specified

Notice Dates

Publication Date
30 Dec 20251 months ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
30 Dec 20251 months ago
Contract Period
26 Feb 2026 - 25 Feb 2028 1-2 years
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Pending
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
WALES & WEST UTILITIES LIMITED
Contact Name
Peter Tune
Contact Email
wwuprocurement@wwutilities.co.uk
Contact Phone
Not specified

Buyer Location

Locality
NEWPORT
Postcode
NP10 8FZ
Post Town
Newport
Country
Wales

Major Region (ITL 1)
TLL Wales
Basic Region (ITL 2)
TLL5 South East Wales
Small Region (ITL 3)
TLL54 Monmouthshire and Newport
Delivery Location
Not specified

Local Authority
Newport
Electoral Ward
Tredegar Park and Marshfield
Westminster Constituency
Newport West and Islwyn

Supplier Information

Number of Suppliers
1
Supplier Name

ENVIRONMENTAL RESOURCES MANAGEMENT

Open Contracting Data Standard (OCDS)

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