Due to be commissioned by mid-June, the US-manufactured and Tas Gas Networks Pty Ltd owned $1.7 million cogeneration unit is expected to save Launceston General Hospital approximately $21 million in energy costs over 15 years through the use of natural gas.

The installation of a cogeneration unit was part of $6 million allocated to the Launceston General Hospital by the Tasmanian Government for major infrastructure projects and equipment purchases.

About $3.5 million was allocated to meet the current-year costs of the natural gas conversion project.

Tas Gas Networks Industrial Manager Fraser Kirkpatrick said “This major joint project will deliver substantial financial, environmental and energy supply benefits to the hospital.

“Given that the hospital has switched from heavy fuel oil to natural gas, emissions will be lower and air quality in Launceston will be improved.”

Tas Gas expects that the energy cost saving achieved through the cogeneration option will allow the capital outlay to be recovered within the first five years of operations.

Mr Kirkpatrick said the cogeneration plant allowed the hospital to generate up to 80 per cent of its own energy needs.

“Because the unit enables the supply of up to 80 per cent of the hospital’s base-power load and a significant amount of the thermal energy required by the hospital as a by-product of its operation, it will naturally improve energy efficiency at the site,” he said.

“The conversion to natural gas will also protect the hospital from sharp electricity price increases currently being experienced by Tasmanian business and householders.”

Installed by Energy Power Systems Australia with the support of local contractors, the hospital is the first Tasmanian business to hook-up to a cogeneration system.

In doing so it has replaced oil-fired steam boilers and converted kitchen appliances and heating systems from liquid petroleum gas to natural gas.

The unit is operated and maintained by William Adams, with remote access provided to the generator at all times for diagnostic checks and fault identification. Relevant Launceston General Hospital staff members are trained in the unit’s operations.

Mr Kirkpatrick said the installation of the cogeneration unit was a joint effort between Tas Gas and the hospital.

“In addition to reducing recurrent expenditure on energy costs, cogeneration provides greater energy flexibility and improves the hospital’s emergency energy capacity.

“It is obviously important for a hospital to have access to a reliable power supply. The secure, internally-generated electricity supply enables the hospital to continue providing services regardless of power outages in the area.

Mr Kirkpatrick added that being able to access its own power is one of the major advantages. “Through the cogeneration unit, the hospital can operate in ‘island mode’ without being connected to the grid.”