- New, low carbon combined cooling, heating and power solution for St Bartholomew’s Hospital
- First fully financed PFI variation of its kind, delivered by Skanska
- First project under SDCL’s “Powering Health” collaboration with GE, Clarke Energy and the NHS Confederation
SDCL is delighted to announce that it has provided finance for Skanska to deliver a low carbon combined chilling/heating and power (CCHP) solution at St Bartholomew’s Hospital. The £2.5 million investment will be made by the UK Energy Efficiency Investments Fund, which is managed by Sustainable Development Capital (SDCL) and funded by the UK Green Investment Bank and other investors.
The UK Energy Efficiency Investments Fund is UK Energy Efficiency Investments 1, LP and parallel partnerships co-investing alongside it. It has been launched with a £50m cornerstone investment from the Green Investment Bank and is managed by SDCL EE Co (UK) LLP, the dedicated UK energy efficiency investment arm of Sustainable Development Capital.
The project is the first investment under the strategic collaboration formed between SDCL, GE, Clarke Energy and the NHS Confederation to finance and implement CHP solutions in the NHS, “Powering Health”.
St Bartholomew’s is the oldest hospital in London, founded in 1123, and the oldest in the UK that still occupies its original site. The project is being procured and delivered through a variation to the existing PFI contract.
The project involves the installation of a 1.4MW GE Jenbacher CCHP system with 250W absorption cooling, designed to maximise financial savings, increase efficiency of operation and improve system reliability and resilience. The CCHP solution will be delivered in conjunction with the construction of a new energy centre at St Bartholomew’s.
CCHP is a default approach to delivering lower carbon electricity and heat under the recent EU Energy Efficiency Directive. The project at St Bartholomew’s is expected to deliver significant carbon emission reductions.
CEO of Sustainable Development Capital, Jonathan Maxwell, said:
“NHS is one of the largest consumers of energy in the UK and provides the most critical of infrastructure services for the country. We are delighted to be delivering a first of a kind project to deliver energy efficient and lower carbon heat and power to meet this historic and iconic hospital’s needs”.
Energy and Climate Change Minister Greg Barker said:
“This is exactly the type of project which the Green Investment Bank was set up for. Technology like CCHP has the potential to make significant emissions and cost savings in energy intensive operations such as hospitals. But it requires significant financial backing, so the partnership funding between SDCL and the Green Investment Bank is something I hope will be replicated to make many similar projects a reality”.
Director of Estates and Facilities for Barts Heath NHS Trust, Trevor Payne, said:
“Barts Health NHS Trust are delighted to lead the way and be the first organisation to successfully use the collaboration framework model between the NHS Confederation, SDCL and GE, with our partners Skanska. The project will deliver a Combined Cooling, Heat and Power (CCHP) solution to one of the oldest and most prestigious hospitals in the world, St Bartholomew’s. The agreement is the first of it’s kind and is being delivered through our existing PFI contract. It is an important step for us in achieving our sustainability goals and we believe that collaboration and partnership are the key to delivering successful, sustainable healthcare for the future”.
Managing Director for Energy Efficiency, UK Green Investment Bank, Bill Rogers said:
“We see a huge opportunity, right across the NHS, to reduce energy consumption and lower operating costs. That’s why it’s so important to see organizations like St Bartholomew’s leading the way and demonstrating what can be done. We are pleased to see SDCL making this investment and look forward to seeing more NHS investments in the months ahead.”
Richard Coleman, Managing Director of Capital Hospitals Limited said:
“Capital Hospitals Limited is delighted to support this innovative EPC solution within the existing Barts Health Trust PFI. A first of its kind, it will facilitate further efficiency in the use of resources.”
Head of Green Business for Skanska, Richard Byers, said:
“This project is a fantastic example of partnership through all of the stakeholders on the energy performance contract, and those on the existing PFI. The ability to embed an energy performance contract within a PFI, opens up a whole new world of carbon and energy reduction opportunities throughout the NHS estate in the UK. We are extremely proud to be part of the team”.
For further information, please contact:
CEO, SDCL EE Co (UK) LLP
Tel: +44 207 287 7700
Justine McIlroy / Oliver Hughes
Tel: +44 207 404 5959
Notes for Editors
About Sustainable Development Capital (SDCL)
SDCL is a specialist financial and investment advisory firm, headquartered in London and with offices in Hong Kong, Dublin and New York. It was established in 2007 to help governments, financial institutions and companies finance and invest in environmental and social infrastructure assets and services. SDCL’s advisory business is focussed on facilitating the supply of clean infrastructure. Its investment business is focussed on reducing demand for resources through energy efficiency.
About UK Green Investment Bank (GIB)
The UK Green Investment Bank was launched in November 2012. It has £3.8 billion of funding from the UK government. It is the first bank of its kind in the world. It is a “for profit” bank, whose mission is to accelerate the UK’s transition to a greener economy, and to create an enduring institution, operating independently of government.
Skanska is one of the world’s leading project development and construction groups. The UK operation is one of the country’s top 10 contractors. In the UK, Skanska is famous for building iconic structures like 30 St Mary Axe (the Gherkin), Heron Tower, St Bartholomew’s and The Royal London hospitals and the QEII Bridge. It also has extensive service-based contracts, such as upgrading London’s gas infrastructure, facilities maintenance contracts, long-term street lighting projects, and landscaping for the London 2012 Olympic Park in Stratford. It has become a UK leader in construction and infrastructure development, delivering projects in healthcare, education, defence, transportation and municipal services, delivered through both private and public investment.
Its forward-looking approach to sustainability is expressed through its Journey to Deep GreenTM, where it aims for all Skanska projects to have a near-zero impact on the environment. Skanska’s President and CEO, Mike Putnam, was invited to be Co-Chair of the Green Construction Board, alongside Business Minister Michael Fallon, in 2012.