COGERSA auctions the valorization of Serín's biogas to produce biomethane

  • COGERSA is tendering the sale of biogas from the Serín Treatment Center to convert it into biomethane and inject it into the natural gas network.
  • The auction starts from a minimum price of 24 euros/MWh and an estimated total amount of 31,6 million euros (excluding VAT).
  • The contract, of a patrimonial nature, will have an initial duration of 12 years, extendable up to a maximum of 20.
  • The winning company will have to build an upgrading plant in Serín and demonstrate high economic solvency and technical experience in landfill biogas.

Overview of waste treatment facilities

El Consortium for the Management of Solid Waste in Asturias (COGERSA) has taken a further step in the energy recovery of its waste by launching a Public auction for the valorization of biogas generated at its Serín plantThe objective is clear: transform that gas into biomethane and channel it into the natural gas distribution network, thus advancing towards a more efficient model aligned with European climate policies.

This tender, published in the Official Gazette of the Principality of Asturias (BOPA)This involves the long-term sale of the biogas produced at the Serín waste treatment center to a specialized company, which will be responsible for invest, operate and manage a dedicated upgrading plantThe process is structured through the Public Sector Procurement Platformwhere interested companies can submit their bids within the established deadline.

Public auction of Serín biogas: how the process is structured

Waste and biogas treatment plant

The purpose of the procurement file is to sale of biogas generated at the Serín facilities for a long period of time. The estimated value of the contract amounts to 31.621.980 euros (VAT excluded), having a maximum duration of 20 yearsThis operation is structured as a property contract, in which COGERSA markets the energy resource obtained from the controlled decomposition of waste.

Companies wishing to participate must submit your economic offer in the form of a price per megawatt hour (MWh)This refers to the energy content of the biogas entering the future recovery plant. The offered price cannot be lower than output rate set at 24 euros/MWh (excluding VAT)The contract will be awarded to the bidder who proposes the highest amount, provided that they meet the other technical and solvency conditions set out in the tender documents.

The announcement published in the BOPA establishes a deadline of 30 calendar days to submit proposalsThe deadline will be counted from the day after the publication date. All applications must be submitted electronically through the Public Sector Procurement Platform, which centralizes the documentation and monitoring of the procedure.

COGERSA anticipates that, taking that as a reference point minimum price of 24 euros/MWhthe contract translates into some annual income of at least 1.581.099 euros (excluding VAT)This figure is considered the minimum revenue threshold for the consortium, which could increase depending on the bids submitted and the evolution of the biomethane market in the coming years.

Contract duration and key economic conditions

The file design includes a contract with an initial duration of 12 yearswhich can be extended by extensions up to a maximum of 20 yearsprovided the stipulated conditions are met. This extended timeframe aims to offer stability to both COGERSA and the winning bidder, given the scale of the investment required for the construction and operation of the upgrading plant.

In economic terms, the contract establishes a base bid budget which is specified in minimum annual revenue for COGERSA of 1,58 million eurosThese figures are calculated based on the starting price per MWh of energy contained in biogas. This is a reference figure that, if the auction result exceeds the starting amount, could be improved during the term of the agreement.

The asset-based modality of the contract implies that COGERSA does not directly assume the investment in the upgrading technologyInstead, it sells the biogas to a specialized company that, in return, pays an agreed price for this energy source. In this way, the public consortium secures a stable source of income related to waste management, while the private operator exploits the potential of biomethane in the gas market.

The overall volume of €31,6 million in estimated value reflects both the economic relevance of the project such as the volume of biogas that will be generated at the treatment plant during the contract period. This approach aligns with the European trend of utilizing landfill and treatment plant biogas by converting it into renewable fuels.

Solvency requirements for interested companies

The tender documents stipulate very demanding access conditions in terms of financial solvencyCompanies aspiring to be awarded the contract must demonstrate that, in the best of the last three completed financial years, they have achieved a annual turnover equal to or greater than 10 million eurosThe aim is to ensure that the successful bidder has sufficient financial resources to cover the investment and long-term operation.

On a technical level, companies are required to demonstrate specific prior experience in the management of biogas from non-hazardous waste landfillsSpecifically, they must prove that they have managed at least one contract whose object was the purchase of landfill biogas with a minimum nominal inlet flow rate of 800 Nm3/h to the corresponding plant. This threshold aims to filter out operators without a real track record in similar projects.

In addition, it is required to have subscribed, at a minimum, a commercial agreement for the injection into the natural gas network of biomethane obtained from landfill biogasa nominal injection flow rate of 200 Nm3/ho or higherThis condition focuses on companies that not only know how to treat biogas, but also how to integrate it into the gas system in accordance with current technical and regulatory requirements.

With this set of requirements, COGERSA intends to ensure that the successful bidder has both the necessary financial capacity like one proven experience in biomethane projectsthus reducing the risks of execution and operation during the useful life of the contract, which is considerably long.

Construction of an upgrading plant at the Serín facilities

One of the central elements of the tender is the obligation of the winning company to build a recovery or upgrading plant within the COGERSA complex itself in Serín. This facility will be responsible for purify the raw biogas sourced from the landfill and waste treatment lines, removing impurities and unwanted components until a biomethane with quality equivalent to fossil natural gas.

The plant must connect to the nearest gas pipelineso that the biomethane produced can be injected directly into the natural gas distribution networkThis step is key for renewable fuel to be integrated into the energy system and be allocated to domestic, industrial or mobility uses, as determined by marketers and the market.

The specifications set a maximum term of two years from the signing of the contract for the upgrading plant to be operational. This timeframe includes design and administrative procedures, as well as construction, commissioning, and grid connection. It's a demanding schedule, but typical for this type of waste-to-energy infrastructure project.

In practice, the plant configuration and the technology chosen for the upgrading process (membranes, water washing, absorption, among other options) will be left to the winning companyprovided it complies with gas quality standards and environmental regulations. COGERSA, for its part, focuses on ensuring a continuous supply of biogas and guaranteeing the overall proper functioning of the treatment complex.

A change of model in the use of biogas in Asturias

With this tender, COGERSA is promoting a significant change in the way biogas generated at their facilities is managedboth at the central landfill in La Zoreda and at the biomethanization plant associated with the treatment of the organic fraction of the waste. Until now, a large part of that resource had been primarily allocated to the generation of electrical power using motors, a model that has been widespread in recent decades in numerous European landfills.

The current strategy involves to direct that biogas towards the production of biomethane and integrate it into the conventional gas system. This strategy allows for a greater flexibility in end uses of renewable fuel, which can be used for heating, industrial processes or even mobility, and facilitates the integration of renewable gas into the decarbonization targets set by the European Union.

The project in Serín fits with the guidelines set by the EU for the boost for renewable gases and the progressive replacement of fossil fuels in the energy mix. The conversion of landfill biogas into biomethane is considered one of the most direct levers for reducing greenhouse gas emissions associated with waste management, while preventing the release of methane, a gas with a potent climate effect, into the atmosphere.

In addition to the environmental benefits, the initiative opens the door to new economic opportunities linked to the circular economyBy transforming a waste management byproduct into a source of income and a valuable energy resource for the system, COGERSA is positioned at the forefront of sustainability strategies being developed in Spain and across Europe.

The auction of Serín biogas for its valorization as biomethane represents a project for COGERSA. long-term project with stable revenues, demanding technical requirements, and a direct impact on the energy transitionThe combination of a contract of up to 20 years, the construction of an upgrading plant, and the injection of renewable gas into the grid positions the Asturian facilities as a prime example of how waste management can go hand in hand with clean energy production and compliance with European climate objectives.

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