Innovative energy project to save Leeds Teaching Hospitals NHS Trust £2.5million per year

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29/03/2019

Energy & infrastructure lawyers at Walker Morris advise on 15-year CHP project

Specialist energy and infrastructure lawyers at law firm Walker Morris have advised Leeds Teaching Hospitals NHS Trust on its 15-year energy solution with Vital Energi.

The partnership will see Vital Energi provide a new Combined Heat and Power energy centre to provide heat and power to St James’s Hospital, Europe’s largest teaching hospital.

The energy solution will replace the hospital’s existing 20 year old gas turbine with a cleaner, more efficient 4.5MWe CHP engine. The project will eventually fund itself by saving the hospital over £2.5 million per year over the contract term, allowing for the hospital to benefit straight away without committing capital expenditure.

The Walker Morris team worked with the Trust to advise on the competitive procurement procedure, plus the structuring and contract issues of the design, build, operate, maintain and finance contract.

The build is set to be completed by June 2020 with Vital providing assurances by committing to delivering the energy savings from this point.

David Kilduff from Walker Morris commented:

“We’ve been delighted to advise the Trust on this strategic energy efficiency contract. The project will deliver reliability of supply, significant efficiency savings and cleaner energy through reduced carbon emissions. It is a great example of how energy efficiency solutions not only provide environmental benefits but deliver efficiency savings from the outset.”

Mick Taylor from Leeds Teaching Hospitals NHS Trust added:

“We developed a good working relationship with Walker Morris on this complex project which will deliver not only financial savings on the current energy budget for the Trust, but will also reduce the carbon emissions of the site which will contribute to making Leeds a cleaner city.”

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