Hospital partnership with MITIE will reduce energy costs and carbon emissions

Published:  05 May, 2011

MITIE, CHP, energy centre
With the help of a contract with MITIE, Royal Free Hospital in Hampstead is looking to reduce energy costs by £13.7 million over the next 15 years.

MITIE has embarked on a 15-year contract with the Royal Free Hospital NHS Trust in north London that will seen the development of an energy centre which will reduce carbon emissions by 16 % in the first year and save the hospital £13.7 million over the term of the contract. The annual saving of £850 000 on fuel bills amounts to about 20% of the Royal Freeís energy bills alone.

At the heart of the energy centre is a gas-turbine CHP unit to provide all the hospitalís electricity and heat. There will also be surplus heat, which will be used to supply 1500 local council houses in Camden.

The project also involves replacing three boilers, each weighing 20 t.

MITIE is also helping the trust with other energy-saving initiatives and projects that will reduce overall carbon emissions by a total of 25%.

The development of the energy centre has been funded by MITIE and its partners, which will maintain it for the length of the agreement in return for an annual fee from the hospital.

As part of the contract, MITIE has guaranteed to deliver financial efficiency savings; if these exceed the capital outlay, surplus funds will be shared with the trust.

Ruby McGregor Smith, MITIEís chief executive, said, ĎThis landmark agreement provides Royal Free Hampstead NHS Trust with first-class energy facilities, reduced carbon emissions and substantial ongoing costs savings. At a time when public services are faced with increasing budgetary pressures, this kind of mutually beneficial model enables hospitals to simultaneous free up resources for patient care and meet increasingly strict environmental regulations.í

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