The UK Green Investment Bank (GIB) and Aviva investors are set to provide funding worth £36 million for a new NHS energy innovation centre.
Built for the Cambridge University Hospitals NHS Foundation Trust (Trust), it will include a combined heat and power unit, biomass boiler, efficient dual fuel boilers and heat recovery systems and will provide heat and power to the Addenbrooke’s and Rosie hospitals. The Trust is expected to save £20 million in energy costs and 25,000 tonnes of CO2 over the 25 year operational term of the project.
MITIE, the FTSE 250 strategic outsourcing company, has been awarded the contract to develop the energy centre and operate it.
Ruby McGregor-Smith CBE, Chief Executive of MITIE said: “This will be an advanced energy centre which demonstrates the economic and environmental value of local energy generation. We are delighted that the Green Investment Bank and Aviva Investors are providing the funding for this project. This underlines the huge potential opportunity decentralised energy projects offer for long-term investors.”
UK Green Investment Bank Chairman, Lord Smith of Kelvin added: “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.”
The funds provided for the energy centre are part of GIB’s £50 million commitment to the Aviva Investors REaLM Energy Centres Fund, which specialises in investment in non-domestic UK energy centres.