13/02/08
NELSON HOSPITAL LANDFILL GAS ENERGY PLANT
Nelson Hospital and Nelson City Council have enjoyed significant benefits from Energy for Industry’s project to reduce the hospital's coal use by the installation of a modern energy plant fuelled by landfill gas.
The benefits to the hospital included:
- The installation of a cleaner-burning 1.5MW boiler at no cost or financial risk
- An annual reduction of $25,000 in energy costs for the next 15 years
- A reduction in annual CO2 emissions of approximately 3,500 tonnes and the avoidance of future costs that might be incurred if a carbon tax is introduced
Benefits to the council included:
- Finding a practical and strategic use for its landfill gas rather than flaring
- A long-term revenue steram from the landfill gas
- Receiving a major boost to the Council's efforts to reduce local air pollution and meet tighter clean air standards
Partnering
The feature of this project was partnering with multiple stakeholders to create and deliver on consensus outcomes.
The project commenced when the DHB's Russell Dickson commissioned a study into the hospital's potential use of landfill gas.
"We appointed Energy for Industry because of its track record in this area and extensive background in the health sector."
"And they didn't let us down - they are reliable and professional, they are technically very competent and experienced, and they pay attention to detail and rectify promptly any issue that needs to be addressed", said Dickson.
The Council backed the scheme because it uses the landfill gas as well as enabling the hospital to reduce coal consumption and air emissions from its coal fired plant. The hospital's existing boiler plant, which consumes around 3,500 tonnes of coal each year, is in an area with high levels of airborne fine particulates.
"Energy for Industry's solution was the most efficient business proposal," said Council Divisional Manager, Fraser Galloway.
"It also added considerable strategic value by allowing the hospital to cut energy costs and reduce environmental impacts in the wider region. This was very much in line with our longer-term air quality goals."
However, neither the Council nor the hospital could develop the proposal, so Energy for Industry worked closely with both parties to facilitate the solution.
Energy for Industry built a gas treatment plant at the landfill and a pipeline to transport the gas from the plant to the hospital.
The company also installed a new gas-fired boiler at the hospital that produces 2.4 tonnes of steam per hour for space and water heating, sterilization and laundry operations. It is the first application in New Zealand to use landfill gas directly in a boiler.
15-year contract
Energy for Industry sells the steam to Nelson Hospital under a 15-year contract. This ensures the hospital pays less for steam generated by landfill gas than it does when it produces steam from its own coal-fired plant.
"They developed the commercial and technical specifications, and handled all the relationship management and contractual arrangements. Everything went smoothly and all parties are very satisfied," says Russell.
"After spending a career in the health sector, I would definitely recommend other DHBs talk to Energy for Industry."
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