Purpose

Following original appointment via competitive
tender approximately four years ago, Greenfield Nordic Ltd have
been working with the Council, providing specialist techno-economic
advice to develop the case for a low-carbon heat network system
around West Bromwich. Cabinet have now agreed to progress this to
the Commercialisation stage and establish a 50/50 Joint Venture
company to own, manage and maintain a network. Whilst the
Council’s current internal knowledge around this is
considerably greater than it was a few years ago, further
specialist consultancy advice and guidance is required to assist
with this final stage taking us up to Final Business Case (FBC) and
procurement of a Joint Venture Partner.

To ensure consistency and avoid duplication of work, Greenfield
Nordic Ltd are ideally placed to provide external techno-economic
services associated with the Commercialisation stage of this
project.

The Council is working to an extremely tight timescale in
accordance with associated Green Heat Network Funding (grant
funding), awarded by the Department for Energy & Net Zero
(DESNZ). As such a Direct Award via a Framework (Greater London
authority GLA 81635 - Local Energy Framework) will save time, whist
still achieving value for money.

Following completion of Detailed Project Development (DPD) and an
Outline Business Case, on 15 January 2025 Cabinet agreed that we
should commence the Commercialisation stage for a potential heat
network around West Bromwich (Minute No. 6/25).

In order to facilitate this, Cabinet also agreed that the Council
should commission external contractors to deliver the
Commercialisation stage of work in accordance with Contract
Procedure Rules. Having been associated with this project for
approximately four years, Greenfield Nordic are ideally placed to
assist with provision of specialist external techno-economic
services.

The budget for Commercialisation will be derived entirely from
Green Heat Network Fund (GHNF) grant funding.

Content

(1) That approval be given to procure/directly
award a Commercialisation (Techno-economic) work package to
Greenfield Nordic Ltd to facilitate a cost-effective and timely
pathway towards procurement of a Joint Venture Partner and
establishment of a Special Purpose Vehicle.

Alternative options considered

There are no other ways forward if the Council
wishes to make use of Green Heat Network funding owing to the tight
timescales involved.