Cambridge University Hospitals

Richard Howe MBE former Executive Director

Cambridge University Hospitals (Addenbrooke's)

Chairman CUH - Project Steering Group

Chairman Trustee – NHS/Carbon Energy Fund

Green Investment Bank GIB – Case study

Cambridge Biomedical Campus

Energy Centre

RHH associatesConsultancy-Design-ConstructionRHH associatesConsultancy-Design-Construction

2008

Energy Centre since 1974

Realising our 2020 vision Introduced - 2020 vision concept in early 90’s

To promote campus expansion plans

Outline planning & S106 (November 2009)

Research

Quarter

Eastern

Campus

Options

Cancer Centre

The Forum

Private Hospital Education Centre Hotel

Northern

(Papworth)

MRC LMB

Perinatal (extension) Children’s Hospital Emergency Centre Neurosciences

Southern Campus

Options Western

Campus

Options

Energy Centre NHS

Expansion

Development Strategy

Cambridge Southern Fringe

Outline planning permission parameter uses

Biomedical

& Biotech

research

Clinical research

& treatment

Biomedical

& Biotech

research

or

Clinical

research &

treatment

Existing Plant (30 years old) Limited Capacity

Regulatory Challenges NHS Energy Targets

Limited NHS Capital

Expanding Campus

Procurement (Energy Model)

Energy Strategy - Drivers for Change

The Carbon & Energy Fund • Of the NHS, for the NHS

• Working together

• In the NHS to improve

• Carbon & Energy Performance

• www.carbonandenergyfund.net

EU Procurement framework

Funding (£200m availability)

Specific ready made contract

Payment mechanism

Guaranteed Savings

Preferred bidder

Utilyx (Mitie)

Energy Procurement Framework

14

Design Philosophy

r66 G66 b67

r66 G66 b67 • Reduce primary demand for

both heat and power

• Select plant to match this reduced demand

• CHP philosophy based on lowest possible heat

requirement and highest possible electrical generation efficiency • Multiple energy sources –

incineration heat, biomass heat, dual fuel (gas/oil) boilers and CHP

Design Philosophy - demand vs generation

Utilyx New proposal

template

15

•Tender Stage - Internal design & commercial modelling

•½ hourly technical model developed allows us to test

different technologies against actual load profiles & run

sensitivities

•Due Diligence review of technical and commercial

proposition during contractual negotiations

•Planning Application during contractual negotiations

•Detailed design to Stage D/E

•Final co-ordination & detailed design development

Design Process

27/03/2014 16

Solution

Clinical Waste Incinerator

• 350kg/hr clinical waste

• 2725 tonnes pa

• 1600kW Steam production providing 11,600MWh or 18% of the total heat load

• Savings: Offset Gas boiler consumption & waste disposal costs

• Disposal of all Addenbrookes hazardous clinical waste

•

• Supports the destruction of clinical waste from other local business

Solution Technology - Incinerator

Core of the scheme is the Rolls Royce Bergen CHP unit

• 7.5 MW electrical capacity

• 4.0 – 5.0 MW thermal capacity

• Production of steam and hot water

• Savings: Offset elec consumption & Offset boiler gas consumption, CO2 reduction

The gas fired CHP engine will provide 50,000MWh of power and 28,500MWh of used heat pa, equating to 78% of the remaining power demand and 44% of the heating demand

Solution Technology - CHP

Renewables provided by Waste wood fire Biomass

• 2 x 3MW thermal capacity

• WID compliant

• 30% or 18,800MWh pa of the heat provided by renewable waste wood fired biomass boilers with expansion capacity to increase annual output by over 200%

• Savings: Offset boiler gas consumption, reduce CO2 & RHI income

Solution Technology - Biomass

• Resilience against future gas price inflation and protects the impact of gas price inflation with respect to the CHP.

Solution – balance of plant & basic overview

• Gas & Oil fired boilers

• Fired section of HRSG

• Steam to LTHW system

Solution

0

2000

4000

6000

8000

10000

12000

14000

16000

kW

thHT demand and outputs (averaged daily figures)

Incinerator CHP Biomass 1`

Biomass 2 Combi boiler Gas boiler 1

Gas boiler 2 HT demands including LT transfer

Overview of Savings

• NPV £36M over 25 year term

• Cash positive Y1

• 30,000t CO2 Savings pa

• 27% above NHS CO2 reduction target

24

25

26

27

28

Solution – Site Integration

27/03/2014 Utilyx New proposal

template

29

Funding & Commercial

Structure

Funding & Commercial Structure

27/03/2014 31

• 25 (+5) year contract with CUH hospitals

• Guaranteed Savings through conversion efficiency, generation, demand side reduction

and government incentives (RHI).

• Project is under the Carbon & Energy Fund framework agreement

• The scheme in total is funded over 25 years via a combination of Aviva & Green

Investment Bank (GIB) funding

• £36 million capital investment . Includes energy centre, underground tunnel link and

demand side measures

• MITIE / Utilyx will operate the plant for 25 years and guarantee the plant performance.

Funding & Commercial Structure

• Proposed scheme is compared against and agreed Base Year load & consumption profile

• The savings are calculated initially using base year tariffs and include

Day & Night Electricity tariffs, Export elec Tariffs, Gas Tariffs

Gas & Elec CCL, CRC £/tonne CO2

• Guaranteed Savings are indexed at 2.5% or RPI

• The Trust pay the funder an MSP (Minimum Service Payment) on a quarterly basis.

• The Trust Pay Utylix the FM fee quarterly adjusted annually for performance

• Excess savings generated through improved performance against the proforma are

shared, providing incentives for continued improvement

• Minimum take agreements

• Load profile mechanism

Payment Mechanism & Guaranteed Savings

Example Savings calculation

Planning

• We undertook a number of public consultations and Pre App submissions to both the

County and City Council to ensure we had full stakeholder input to minimise potential

obstacles.

• One of the issues raised was the use of Biomass in the scheme and its potential for

discharge issues raised by the adjacent users. The discharge modelling undertaken and

EIA aided this process, which again will be regulated by the permitting authority.

• We are finalising a local fuel contract which gives surety of supply and in essence was a

good news story for the County, who in turn have a long term contract with the waste

supplier , whereby the waste wood goes to landfill, our scheme eliminates that need

• We are through the detail design process making minor changes to the aesthetics of the

building through technical necessity, which will form a subsequent Section 73

application, due for submission shortly.

Planning – the challenges

Delivery

Current Project Programme:

• The Archaeological dig - 25th November to February 2014, concludes 4no planning

conditions ( 3no of relating to Archaeology and 1no Geotechnical.)

• Certificate of Commencement (CoC) is planned for the mid April 2014,

• Commencement on site early May 2014.

• 24 month development programme, including final 6 months dedicated for

commissioning, setting to work and optimisation

• At Practical Completion the commencement of 25 year term & savings / performance

obligations will apply.

Delivery

Thank you

richard@rhhassociates.co.uk