Over £38 million of Salix funding used to install CHP across the UK public sector

Over £38 million of Salix interest-free loans have been used for the installation of combined heat and power (CHP) to provide high efficiency heat and power generation to UK public sector buildings, bringing estimated annual savings of over £10 million on energy bills. Last year saw a record number of these Salix funded CHP projects completing, with a total of £14 million of funding utilised throughout the public sector.

CHP can generate heat and power across one or more buildings and can reduce energy use by up to 30%[1]. Funding for CHP has been particularly well received for projects in hospital and higher education estates, as their year round electrical and heating base load allows for CHP running hours which can maximise the return on investment.

Poole Hospital NHS Foundation Trust identified the opportunity to make significant financial and carbon savings by  replacing two smaller, aging CHP units with a 850 kWe CHP located in a new energy centre. Using £1.2 million of Salix funding, the project completed in March 2017 and it is estimated to save over £262,000 per year on energy bills as well as over 1,100 tonnes of CO2e2.

Steven Fall, Estates Officer at Poole Hospital NHS Foundation Trust, said: “Working with Salix has been a smooth and efficient process. This funding has significantly contributed towards our overall Trust carbon reduction target and sustainability plan.”

In 2014, the University of Liverpool completed the largest CHP project supported by Salix funding. Using an interest free loan of £6.1 million, they installed two 2 MWe CHP engines into a disused Grade II listed boiler house. The engines generate 22 GWH of electricity each year, with a net reduction to energy bills of over £1.5 million.

Peter Birch, Engineering Services Manager at University of Liverpool, said; “Our CHP engines have delivered fantastic financial and carbon savings for the university. Without the support and funding from Salix Finance we would have been unable to implement such a large scale project.

In addition to the projects already completed, Salix has committed a further £7.7 million of funding to CHP projects in hospitals and universities which are now in the process of being implemented.

Further funding for CHP and other energy efficiency projects is available now, and details can be found at https://www.salixfinance.co.uk/loans. Salix can provide part or full funding for projects, with funding allocated based on value for money both in terms of financial payback on funding requested and estimated carbon savings.

Salix will be running workshops on CHP for the public sector later this year. These will be an opportunity to learn more about best practise for the design and operation of CHP systems, as well as how Salix funding can be utilised to help with the upfront costs of installation. If you work for a public sector organisation and are interested in attending, please contact emma.lawes@salixfinance.co.uk

1 ‘Lightening the Load – How CHP helps win the global race for a competitive, low carbon economy’, The ADE (https://www.theade.co.uk/resources/publications/lightening-the-load-how-chp-helps-win-the-global-race-for-a-competitive-low)

2 Calculated using emissions factors published by government in June 2016 for carbon footprinting purposes

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