Major Co-generation / Combined Heat & Power (CHP) installation for Tasmanian hospital

GAS TO GENERATE HUGE SAVINGS FOR LGH

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The Launceston General Hospital will begin the $4 million process of converting to natural gas over the next two months, Health and Human Services Minister Lara Giddings announced today.

Ms Giddings said the Parliamentary Standing Committee on Public Works had given the green light for roll out of natural gas as the hospital’s energy solution into the future.

The major project – developed jointly with Powerco – would see the LGH convert from Liquid Petroleum Gas and heavy fuel oil and would mean major financial, environmental, safety and energy supply benefits for the hospital and the Launceston community.

“I am delighted that the LGH will take advantage of the advent of natural gas in Tasmania,” Ms Giddings said.

“It will provide cheaper energy for the hospital, will improve its capacity in an emergency situation and will reduce air pollution.”

Ms Giddings said the conversion to natural gas would provide operating savings of approximately $21 million over 15 years, with the capital outlay being recovered over the first four years.

“The first step – expected to be taken within the next couple of months – will be to convert kitchen appliances and heating systems currently operating on LPG.

“Within the next six months the hospital will install natural gas equipment to replace its ageing oil-fired steam boilers which provide heat and steam for the linen service.

“The switch from heavy fuel oil to natural gas to fire steam boilers will result in lower emissions and help to improve air quality in Launceston.

“And by the end of the year, it is expected that the LGH will have set up its own natural gas powered co-generation plant which will enable it to generate up to 80 percent of its own energy needs.

“This secure, internally-generated electricity supply will enable the hospital to continue providing services to the public regardless of power outages in the area.

“Currently, if the electricity supply were to fail, the hospital can only be supported to 20 per cent of its capacity for up to four hours.”