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Lined Rock Caverns

Wales & West Utilities Limited

Awarded
services
Wales

This tender has closed

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Key details

Contracting authority
Region
Newport
Contract value
Not stated by buyer
Submissions closed
Not stated by buyer
Published
30 December 2025

Procurement

Contract period
26 February 2026 - 25 February 2028
2 years
Procedure type
Direct award
CPV classifications
  • 71313000 Environmental engineering consultancy services

What happened

Wales & West Utilities Limited awarded this contract to Environmental Resources Management Limited worth £600,000. The contract runs until 25 Feb 2028.

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 £600,000.

Contract Term is two (2) years.

Awarded supplier

Supplier
Environmental Resources Management Limited
Companies House: 1014622
Award value
£600,000

Contact

Address
Wales & West House, Newport, NP10 8FZ
Contact name
Peter Tune

Identifiers

Buyer reference
WWU1542
Notice ID
086493-2025
OCID
ocds-h6vhtk-05fe56
Companies House
PPON
PMVL-3238-DQDX

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External ID: fts-ocds-h6vhtk-05fe56 • Added 6 August 2026