GIB backs NHS bio-energy centre
£18m of funding toward scheme to cut power costs and CO2 emissions
The UK Green Investment Bank is to pump £18m of funding into a new bio-based energy innovation centre for Cambridge University Hospitals NHS Foundation Trust.
The move is part of the GIB’s commitment of £50m to the Aviva Investors REaLM Energy Centres Fund, specialising in investment in non-domestic UK energy centres.
The energy innovation centre, which is still awaiting final planning approval, will house a combined heat and power unit, biomass boiler, efficient dual fuel boilers and heat recovery from medical incineration.
The project will provide heat and power for the trust, including the Addenbrooke’s and Rosie Hospitals. It will create savings of more than £20m during its 25-year operational life and is xpected to cut CO2 emissions by 25,000 tonnes a year.
UK GIB chairman Lord Smith of Kelvin said: “Non-domestic energy efficiency is a priority sector for the GIB and this deal is an early demonstration of our strategy to partner with co-investors and deliver a commercial return to the bank while reducing carbon emissions.”
The total investment required for the project is £36m and Aviva Investors REaLM Infrastructure Fund is providing the balance of the cash. FTSE 250 strategic outsourcing company MITIE has been awarded the contract to develop and operate the scheme.
Business Secretary Vince Cable added: “The GIB’s £50m commitment to the Aviva Investors REaLM Energy Centres Fund will help deliver much-needed energy and financial savings for NHS hospitals.”
Image: Vince Cable welcomes the GIB's investment in clean energy for the NHS (Liberal Democrats)