Vital Energi has entered into a 15-year partnership with Leeds Teaching Hospitals NHS Trust to provide it with "a full and comprehensive energy solution" to guarantee savings of £2.5 million a year over the contract term.
Vital's scheme consists of a turnkey solution providing the design, build, operation, maintenance and ESCo services for the trust complex.
Leeds Teaching Hospitals Trust is one of the largest in Europe, employing almost 18,000 members of staff. Therefore, the reliability of supply was a key factor when deciding upon the solution.
The trust has an existing 20-year-old CHP gas turbine energy centre, which was due for replacement and so Vital proposed a more efficient and cost-effective solution.
Following extensive analysis of the trust's requirements, Vital identified that opting for a 4.5MWe CHP engine as an alternative to a replacement gas turbine would deliver greater efficiencies for the hospital, and provide a more cost-effective energy supply.
As the ESCo energy partner, Vital has provided the finance for the £8.4 million project, which will eventually fund itself through guaranteed savings of £2.5 million a year, allowing for the hospital to benefit straight away without committing capital expenditure.
The scope of works will see Vital operate the existing energy centre for about six months before refurbishing it with newer and more efficient equipment, as well as adapting existing infrastructure to cater for the additional low-temperature hot water that will be provided from the CHP.
The build should be completed by June 2020, and Vital is providing assurances by committing to delivering the energy savings from this point.
Phil Mottershead, account director at Vital Energi, said: "Due to the 24/7 nature of the hospital's environment, we have designed a careful implementation schedule to alleviate disruptions on daily operation."
Because of the close proximity to Vital's Leeds PIPES District Heating Network, there is the possibility to make a connection to the hospital's network in the future to provide further benefits.