Press Release

11 April 2011

Landmark energy deal saves money and carbon for leading hospital

AN internationally renowned UK hospital is using jet fighter technology to help cut its CO2 emissions by 25% and save hundreds of thousands of pounds a year through a new “green energy” centre installed on site. 

The Royal Free Hampstead NHS Trust, north London, which treats 700,000 patients a year, has signed a 15-year contract with energy services company MITIE. 

As part of the agreement, MITIE has developed a new energy centre within the hospital which will supply all of the Trust’s energy independently of the national grid, including heating and hot water. 

This will reduce the hospital’s external energy dependence and increase its efficiency - cutting emissions and saving money. 

At the heart of the energy centre is a high efficiency gas turbine that will provide the hospital’s electrical and heat supply. It is the same type of technology found in modern jet fighter engines. 

The centre will save the Royal Free 16% in carbon emissions in its first year – approximately 4,500 tonnes of CO2 which is the equivalent emissions of over 2,000 family cars per year (based on a Ford Focus driving 10,000 miles a year). 

As well as the reduction in CO2 emissions the energy centre will save £13.7m for the hospital over the term of the contract. The annual saving of £850,000 on fuel bills equates to about 20 per cent of the Royal Free’s utility bills alone.

In addition, MITIE is helping the Trust with other energy-saving initiatives and projects which will cut the overall CO2 emissions by a total of 25%.

The project involves the replacement of three boilers – a huge undertaking as the boilers each weigh 20 tonnes and are similar in size to a large van (measuring four by six metres). 

The development of the energy centre has been funded by MITIE and its partners, which will maintain it for the length of the agreement in return for an annual fee from the hospital. This means that the hospital capital budget is preserved and it can focus resources on its core mission of providing worldclass clinical services. 

MITIE will also work with the Trust to help it meet its NHS carbon reduction targets, including cutting CO2 emissions by 15% on 1995 levels by 2020. 

As part of the contract MITIE has guaranteed to deliver financial efficiency savings and, if these exceed the capital outlay, share the surplus funds with the Trust. 

Ruby McGregor Smith, MITIE’s chief executive said: “This landmark agreement provides Royal Free Hampstead NHS Trust with first-class energy facilities, reduced carbon emissions and substantial ongoing cost savings. 

“At a time when public services are faced with increasing budgetary pressures, this kind of mutually beneficial model enables hospitals to simultaneously free up resources for patient care and meet increasingly strict environmental regulations.” 

Martyn Jeffery, estates director at the Royal Free Hampstead NHS Trust said: “This performance-based contract solved the dilemma we faced as an NHS Trust, in allocating resources to sustainability actions while maintaining our clinical funding. It will enable us to meet our targets and gain certainty of supply without any adverse impact on patients, staff or other stakeholders.” 

-ENDS-

Notes for editors
Low resolution imagery of the project including images of the hospital and boiler is attached. High resolution imagery is available on request.

 

Notes for editors

What is MITIE?
We’re the strategic outsourcing company. What does that mean in practice? We manage facilities, properties and assets for our clients across the UK and beyond.

We work with our clients in three ways; some take full advantage of our whole range of expertise, others may only need one aspect of what we do:

Strategy and consultancy
+ Facilities and project management
+ Service delivery

Our strategic input can add value at the highest level by helping clients to manage their assets, while our practical management expertise can save customers money and reduce their carbon emissions. We work with a vast number of clients in every industry across both the public and private sectors and deliver the broadest range of services that can be found in one place: from integrated facilities management to engineering maintenance to lifecycle energy management and much more.

There’s a lot more to MITIE than you probably think. We’re a big company with big ambitions – a leading FTSE 250 support services business, with more than 56,000 people, revenues in excess of £1.7bn, and a reputation for being the best.

Visit us at www.mitie.com