New innovation centre to save NHS £20m in energy costs
Funding has been secured for a new energy innovation centre for Cambridge University Hospitals NHS Foundation Trust, which will save £20m in energy costs and 25,000 tonnes of CO2.
The £36m of funding needed will be provided by Aviva Investors and the UK Green Investment Bank as part of a 25-year contract.
The centre, which will serve Addenbrooke's and Rosie hospitals, is expected to be one of the largest energy centres in the UK and will be developed and operated by outsourcing company MITIE.
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."
Subject to final planning approval, the new centre will house a combined heat and power unit, biomass boiler and efficient dual fuel boilers, as well as heat recovery from medical incineration.
Aviva Investors infrastructure and renewable energy fund manager Ian Berry said: "The development of UK energy centres is a very exciting new area for long-term investors such as pension funds.
"They can achieve stable, diversified and relatively low risk income streams, while also helping to fund important infrastructure projects that deliver long term savings and sustainability benefits to their clients.
"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."