Guy’s and St Thomas’ saves £1.5m a year on CHP clean energy project
Guy’s and St Thomas’ NHS Foundation Trust has revealed that an innovative Combined Heat and Power (CHP) solution has underpinned a £1.5m cut in its annual energy spend and a 20% year-on-year reduction in its projected carbon dioxide emissions.
The news comes as the Carbon Trust today launched a new guide aimed at encouraging more organisations to explore the potential for CHP systems to deliver cost and carbon savings.
Guy’s and St Thomas’ has worked with the Carbon Trust on its public sector carbon management programme for the last three years. As a result, Guy's and St Thomas’ invested £10m[1] in CHP engines which have brought substantial savings on energy costs while providing heat for the hospital wards and hydrotherapy pools among other uses.
Alexandra Hammond, Sustainability Manager, Guy’s and St Thomas’ NHS Foundation Trust said:
“We are already recovering the cost of the project through reduced energy bills and the CHP system has also reduced our carbon dioxide emissions by over 11,000 tonnes a year, equivalent to taking over 3,500 cars off the road.”
CHP technology simultaneously generates heat and power, usually electricity, in one single, highly efficient process. Whilst generating electricity, CHP also captures waste heat generated by boilers – which can then be used to heat buildings or produce steam or hot water for industrial processes.
Because the heat is recovered on site, the process is more efficient than using electricity from the grid and can typically save 20% – 30% on energy costs.
Over 35 of the Carbon Trust’s major customers have installed full scale CHP systems in the last three years. In the public sector, these include the London Fire Brigade, Loughborough University, Dumfries and Galloway Council and several more NHS Foundation Trusts including City Hospitals Sunderland, United Lincolnshire Hospitals and King’s College Hospital, London.
In its new guide launched today - Introducing combined heat and power: A new generation of energy and carbon saving - the Carbon Trust recommends that all organisations that need heat for 17 hours or more a day, at least five days a week should consider using CHP.
The guide explains what CHP is; what the key benefits are in terms of energy savings, plus tax and regulatory incentives; and which organisations are best suited to take advantage of CHP.
Climate Change Minister Greg Barker said:
“I am a big supporter of Combined Heat and Power. CHP units are highly efficient at generating energy, which means lower fuel bills and a reduction in carbon emissions. The Carbon Trust’s new guide will help people make an informed choice about switching to CHP. I’m really pleased Guy’s and St Thomas' in London is feeling the benefit of their installation, saving £1.5million on their annual electricity bills.”
Hugh Jones, Director of Solutions at the Carbon Trust, said:
“This technology is a proven means of saving money and cutting carbon emissions but we are convinced that many more organisations in both the public and private sectors could be following the example of Guy’s and St Thomas’ and reaping similar benefits from CHP. That’s why we are launching this guide to help organisations understand how and where CHP can be used to cut costs and help them meet increasing carbon compliance requirements.”
Alexandra Hammond, Sustainability Manager, Guy’s and St Thomas’ NHS Foundation Trust added:
“Although CHP generates a large amount of the UK’s energy, it is not a technology that you currently come across every day. The capital costs can be high, and the engines must be well suited to the demands of the site. However, as part of an energy survey, it was identified that CHP was financially viable for our hospitals. The benefits for us from CHP have been substantial.”
Graham Meeks, Director of the Combined Heat & Power Association (CHPA), added:
“Rising energy bills and efforts to tackle climate change mean energy is changing. CHP presents a leaner, smarter and more integrated approach to energy use. Around 1,500 CHP systems are already in operation in the UK. We’d encourage more organisations and businesses in the industrial, commercial and public sector to download this guide from the Carbon Trust to find out more about how CHP can help them cut costs and carbon emissions and protect themselves against energy price rises in the future.”
About the Carbon Trust Guide
Introducing combined heat and power: A new generation of energy and carbon saving, the Carbon Trust guide to CHP is available online as an interactive PDF at: www.carbontrust.co.uk/publications
It outlines the following information to help organisations exploit CHP:
- A technology overview – Generally, CHP makes most economic sense for buildings with a high and constant demand for heat. The guide explains what CHP is; what the energy saving opportunity is and which organisations are suited to an installation.
- Finance options – As well as cutting energy bills, there are many financial incentives for installing CHP, including: Enhanced Capital Allowances (ECAs); Renewables Obligation Certificates (ROCs); Feed-In Tariffs (FITs) and the Renewable Heat Incentive (RHI) scheme. The guide explains what incentives your CHP systems entitle you to.
- CHP Technologies – A CHP plant consists of a prime mover, an electrical generator, and a waste heat recovery system. There are five different types of CHP prime mover; the Carbon Trust guide outlines their characteristics, as well as the different fuels, generators and heat recovery equipment available.
- Taking action – A scoping study to determine your site’s suitability for CHP is an essential first step. The guide explains how facilities and energy managers can complete a detailed assessment, and then arrange for a CHP system to be designed, financed and installed.
Key facts about CHP
- The average UK fossil fuel generator has an efficiency of around 38%, whereas packaged CHP that is correctly sized and designed can have an overall conversion efficiency of primary fuel to usable energy of around 70%.
- Annual CO2 savings through the use of CHP in 2007 were almost 15 million tonnes of CO2. This is broadly equivalent to the CO2 emissions from five million cars in a year.
- Last year, the Government predicted an increase in the generation capacity of CHP plants to 15.5 GWe by 2020[2].
About Guy’s and St Thomas’ NHS Foundation Trust
The Department of Health’s Energy and Sustainability Fund granted Guy’s and St Thomas’ NHS Foundation Trust £10m to install combined heat and power engines.
About the Carbon Trust
The Carbon Trust is a not-for-profit company with the mission to accelerate the move to a low carbon economy, providing specialist support to business and the public sector to help cut carbon emissions, save energy and commercialise low carbon technologies. By stimulating low carbon action we contribute to key UK goals of lower carbon emissions, the development of low carbon businesses, increased energy security and associated jobs.
We help to cut carbon emissions now by
- Providing specialist advice and finance to help organisations cut carbon
- Setting standards for carbon reduction
We reduce potential future carbon emissions by
- Opening markets for low carbon technologies
- Leading industry collaborations to commercialise technologies
- Investing in early stage low carbon companies
[1] The Department of Health’s Energy and Sustainability Fund granted Guy’s and St Thomas’ NHS Foundation Trust £10m to install combined heat and power engines.
[2] Low Carbon Transition Plan Emissions Projections, DECC, 2009, p29.
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