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Gas supply renewal

05/09/2023 - Gas supply renewal

That Cabinet:

1.      Authorised the Executive Director Growth & Regeneration, in consultation with the Cabinet Member for Climate, Ecology, Waste and Energy, to renew the BCC gas supply contract for up to four years, on a flexible procurement basis, noting the values and amounts as outlined in this report and that any budgetary pressures once prices are confirmed will be raised and require management during the medium term financial plan setting.

2.      Noted the expected reduction in demand for natural gas over the new contract lifetime due to connections to Bristol’s district heating Networks, replacement of gas boilers with heat pumps, improved energy efficiency measures (as set out in the BCC Corporate Estate Decarbonisation Programme), and estate rationalisation, may require additional investment or budget for which further approval will be sought as required.

3.      Authorised the Executive Director Growth & Regeneration, in consultation with the Cabinet Member for Climate, Ecology, Waste and Energy, to take all steps required to secure the provision of a 100% ‘Green Gas’ supply for all BCC sites within the scope of the 2025 Carbon Neutrality target (including procuring and awarding contracts over the key decision threshold), subject to affordability and availability at an estimated cost of £546K (included in the overall total contract value). This would include both biomethane and hydrogen produced from electrolysis of water using renewable energy sources (Green Hydrogen).