The UK Green Investment Bank (GIB) is joining forces with an international finance specialist to provide £50m for energy efficiency projects, including combined heat and power (CHP) plants and biomass boilers.
The alliance with Societe Generale Equipment Finance (SGEF) aims to help public and private sector organisations reduce their energy costs and greenhouse gas emissions.
The funding will allow organisations to put in place energy efficiency measures, for example using CHP facilities and biomass boilers, without having to fund the finance upfront.
Shaun Kingsbury, chief executive at the GIB, said: “Many organisations understand that energy efficiency measures make good commercial sense but, with few financiers in this space, they simply cannot afford the initial investment.
“Our partnership with one of the industry leaders allows these organisations to realise cost savings from day one without having to fund the capital upfront.”
Rampton Hospital, which is part of Nottinghamshire Healthcare NHS Trust, is the first project to benefit from the alliance (see box below).
“The project at Rampton Hospital is a great example of how an institution can lower its energy costs, produce on-site heat and power, manage waste and cut its carbon emissions,” said Kingsbury.
Giles Turner, managing director of SGEF UK, said: “With the GIB’s support in this exciting market, SGEF looks forward to supporting UK investment in energy efficient measures and further success with NHS and industrial customers.”
Case Study: Rampton Hospital
The hospital will receive £5m investment from the alliance to install a CHP plant, dual fuel boilers, biomass boilers and an effluent treatment plant.
Energy and technical services provider Cofely will design and install the equipment and contribute to the initial £5m investment. The GIB-SGEF partnership will then reimburse Cofely on completion of the installation.
Nottinghamshire Healthcare NHS Trust will pay the cost back over a 15-year period.
It estimates Rampton Hospital will save £1.7m, along with 88,000 tonnes of CO² over the lifetime of the project.
It will also generate 5,000 MWhth per year of renewable heat.