Sell energy assets
As a result, capital budget that was previously earmarked for energy utilities now goes towards much-needed hospital equipment, and the organisation can concentrate its resources and efforts on its core business.
Outsourcing the Dunedin Energy Centre to Energy for Industry resolved a variety of operational and financial risks for ODHB, including:
- the need to spend $3 million of capital to meet new emissions control regulations
- commercial obligations to supply other organisations with steam
- escalating energy plant management, maintenance and resourcing costs
- a general shortage of appropriately skilled people
Boot partnership
Energy for Industry purchased the Dunedin Energy Centre from ODHB under a BOOT partnership (Build, Own, Operate, Transfer). The energy centre comprises four coal fired steam boilers with a total capacity of 30 MWth and a steam reticulation system.
As part of this arrangement Energy for Industry took over and renegotiated the commercial supply contracts with the other customers, supplying energy in the form of steam and hot water to Cadburys, NZ Towel Service, the University of Otago and three smaller customers.
In early 2007, Energy for Industry added another customer to its service when it connected the new Livingspace apartment complex to the energy centre, supplying steam to the refurbished building from a new pipeline laid specially to supply the modern apartment complex.
Upgrade programme
Following acquisition of the energy centre, Energy for Industry commenced a comprehensive upgrade programme to extend the life of the plant and bring it up to modern best practice standards. Projects already completed include the installation of a baghouse to reduce particulate emissions (achieving a reduction of 93% of dust emissions) and upgrading of the control systems.
"Otago District Health Board is satisfied with the business benefits derived and our staff are happy that the project has lived up to expectations. Those are two reliable indicators of Energy for Industry's value to us.”
CLICK HERE TO DOWNLOAD PDF (1,429KB)