MITIE has won the contract to develop and operate a new energy innovation centre for Cambridge University Hospitals NHS Foundation Trust after it helped secure £36 million funding for the ground-breaking project.
The new energy innovation centre – which will save £20 million in energy costs and 25,000 tonnes of CO2 over the 25 year contract term – will serve Addenbrooke’s and Rosie hospitals and is expected to be one of the largest energy centres in the UK.
The energy centre will house a combined heat and power unit, biomass boiler and efficient dual fuel boilers, as well as heat recovery from medical incineration. Combined heat and power generation produced by energy centres captures excess heat, potentially enabling efficiencies in excess of 80% to be reached compared to less than 60% for standard gas power generation.
As an alternative to sourcing power from the National Grid, the Trust will benefit from the energy centre’s materially lower energy costs and carbon emissions.
In a ground breaking transaction, MITIE also helped secure the necessary funds from Aviva Investors and the UK Green Investment Bank comprising approximately £36 million for the new development.
Ruby McGregor-Smith CBE, Chief Executive of MITIE, said:
“We are delighted that the Green Investment Bank and Aviva Investors are providing the funding for this project. This underlines the huge potential opportunity decentralised energy projects offer for long-term investors.”
Ian Berry, Fund Manager, Infrastructure & Renewable Energy at Aviva Investors, said:
“This is a landmark transaction and demonstrates how private sector know-how and pension fund money can be used alongside government funds to finance innovative infrastructure initiatives, and the ongoing development of renewable energy and energy efficiency projects in the UK.”
UK Green Investment Bank Chairman, Lord Smith of Kelvin, said:
“Non-domestic energy efficiency is a priority sector for the Green Investment Bank, and this deal is an early demonstration of our strategy to partner with co-investors and deliver a commercial return to the bank, whilst reducing carbon emissions in the UK.”
The project is subject to final planning approval.