Funds from the Green Investment Bank (GIB) are to be used by an NHS Trust to improve the energy efficiency of Salford Royal, potentially saving the hospital around £2 million off its annual energy bill.
GIB will provide £3.4 million to the improvement scheme which will be combined with funds from DLL to total £6.9 million. The Salford Royal NHS Trust will use the funds to improve the energy centre at the hospital through a series of measures including the installation of a new 2.5MW combined heat and power (CHP) engine.
A series of energy reduction measures will also be installed such as LED lighting and the optimisation of the building management system.
The project was procured through the Carbon and Energy Fund (CEF) framework, with Trust partner Vital Energi to carry out design, construction, installation and on-going asset management of the scheme over a 15 year contract.
Mike Dance, estates manager for Salford Royal NHS Foundation Trust, said: “The Carbon and Energy Fund has given the Trust a fantastic opportunity. We will upgrade a key part of our energy infrastructure while at the same time reducing our carbon emissions and saving money.”
Ed Northam, head of investment banking at GIB, said: “The NHS is one of the UK’s biggest energy consumers and upgrading existing technology will increase the reliability and resilience of its entire estate. This programme of energy efficient improvements will save energy, cut costs and reduce greenhouse gas emissions without impinging on patient care.”
Phil Mottershead, Account Director, Vital Energi, said: “We are delighted to see forward thinking Trusts like Salford Royal NHS Foundation Trust embrace the opportunities offered through the Carbon & Energy Fund to deliver huge financial savings and carbon reductions. We are excited to be working on this project which we believe will be a great example for other NHS Trusts who share similar ambitions of reducing their environmental impact.”
The project, which is due for completion by the end of 2016, is expected to cut the cost of energy to the Trust by £1.9m per year and reduce greenhouse gas emissions.
Until recently, the future of schemes like this has been in question following the government’s decision to sell the institution into the private sector. In order to do this, the regulation stipulating the green investment agenda of GIB is to be removed in a move criticised for the organisation on the path to being “just another bog-standard asset manager.”
However following pressure from a range of sources, including the Environmental Audit Committee, the Department for Business, Innovation and Skills has announced that a special share will be created in an attempt to ensure the bank continues to only fund clean energy projects.
