UM UCMC Combined Heat & Power System

The First System of its Kind in Maryland
The Co-Generation project between ESF and UCMC shows literal 'power' in our partnership. From project conception with the PPA structure, design, construction, commissioning, and training; ESF has been there with the leadership and technical skills to complete a sophisticated project that completely fits our needs.
Don Allik, Director of Facilities, Upper Chesapeake Health
Location: 
Bel Air, Maryland
Client: 
University of Maryland Upper Chesapeake Health
Contract Value: 
$9,000,000
Year Completed: 
2014
Sector: 
Expertise: 

Clark’s Energy and Structured Finance (ESF) group completed a $9 million contract for the University of Maryland Upper Chesapeake Medical Center (UM UCMC) Combined Heat and Power (CHP) System. The UM UCMC CHP project features a two megawatt natural gas CHP system, which was designed and developed by ESF.

UM UCMC is the first hospital in the state of Maryland to employ a CHP system. This new energy system will significantly improve the electrical efficiency of the hospital. The improved energy efficiency of CHP systems stems from the design to reuse exhaust heat to simultaneously generate electrical and thermal energy. By using this system to produce energy on the campus of UM UCMC, it is the equivalent of taking over 2,200 cars off the road.

The system serves as a primary power source for the hospital’s electrical load. The advanced system captures waste heat and utilizes it in the absorption chiller, heat recovery steam generator, and other systems, eliminating the need to purchase additional electricity. It also provides significant back-up power for non-critical care loads during prolonged grid outages.

The provision of all of these services from one system makes CHP significantly more efficient that than the conventional method of electricity generation. The new CHP will allow UM UCMC to achieve greater than 65% efficiency, provide electricity for UM UCMC's baseload, and supply a thermal baseload for both steam and chilled water.

Using a special purpose entity, ESF will sell electricity back to the hospital under a 20-year power purchase agreement (PPA) contract with early buyout options. The PPA structure will save the hospital significant funds over the 20-year agreement due to the contractual price for electricity. Through this arrangement, ESF is able to bring tax and other incentives into the project capital structure that would otherwise not be available to non-profit or tax-inefficient organizations.

The UM UCMC CHP project is the first recipient of the EmPower Maryland CHP incentive program, providing $1.5 million of capital from Baltimore Gas and Electric.

ESF which structures and develops customized on-site power solutions that use clean and renewable energy and invests equity and arranges the debt financing, and utilizes Clark’s project teams to install the systems. ESF will also oversee the operation and maintenance of the equipment during ownership.

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