Waste Offtakes Framework

Lancashire Renewables Limited (LRL) was established for the operation and management of two central waste treatment facilities. LRL's key objectives are to receive, treat and transport contract waste (circa 400,000 tonnes p.a.) in accordance with the targets and service requirements set out in the Service Level Agreement between the company and its majority shareholder, Lancashire County Council (LCC).

Each of LRL's two waste treatment facilities is designed to process and handle various municipal waste types arranged and supplied by Lancashire County Council and Blackpool Council. The sites are located at Farington (PR26 6TB) and Thornton (FY7 8RY).

Following our processing, waste is sorted into approx. 10+ waste streams, where it is either baled or sent loose on to offtakers in the market for onward processing. These relationships have developed over time and organically, but work well.

LRL is looking to formalise arrangements with suitable organisations, which will assist with visibility of our supply chain for audit and accountability. Categories of waste (additional data about frequency and how it is prepared is provided in our Market Engagement Questionnaire) we currently provide as offtakes includes, but isn't limited to: Ferrous Metals (Recovered) Non-Ferrous Metals (Recovered) Paper and Cardboard - Unprocessed WEEE Waste Ferrous Metals (Separately Collected) Non-Ferrous Metals (Separately Collected) HDPE Coloured Plastic HDPE Natural Plastic Mixed Grade Glass Mixed Metals Mixed Plastics Source Separated Paper and Card - Baled PET Clear Plastic LRL may need or wish to introduce more waste streams for offtakes during the life of the arrangement, and so it will include provision for this.

This may include provision for: Digestate liquor (derived following an anaerobic digestion process), both non-PAS 110 and PAS 110 certified varieties Comingled waste Tetra Pak MBT Non Processable Waste Hazardous Waste Process Water Ammonium Sulphate LRL are considering an Open Framework or Dynamic Market route to market, which may be up to 8 years in length. Contracts awarded under this may vary in length depending on waste type.

If Open Framework or Dynamic Market are used, and a longer than 4 year term is selected, this may attract a proportionate increase in total value. LRL are undertaking this PME, but the future contracts established, as well as ongoing contract management may be with either LRL or LCC (as the major shareholder).