BPU awards rebate to Bayonne hospital’s energy system

TRENTON –  The Board of Public Utilities (BPU) approved $950,000 in rebates for Bayonne Medical Center’s $3.5 million energy project that will enable it to generate much of the hot water, cooling and electricity the facility uses, which will save energy and energy related costs.

The system will also enable the hospital to be independent of the grid during major outages.

“The Bayonne Medical Center energy project stands as a perfect example to other critical facilities such as hospitals, college campus, municipal/police facilities, or water treatment plants throughout the state,” Bob Hanna, President of the New Jersey Board of Public Utilities, said in a statement. “One of the lessons learned during Superstorm Sandy is that CHP (Combined Heat and Power)  is a promising technology in keeping critical facilities operational and safe when there is a major outage.”

New Jersey currently has approximately 3,000 miliwatts (MW) of CHP developed at more than 200 facilities and 1.5 MW of FC capacity located at eight facilities across the state.

“We are happy to hear that the Board of Public Utilities has approved the grant to Bayonne Medical Center’s energy project,” said Michael Karp, Director of Business Development for GH Energy, which is the project developer. “Bayonne Medical Center, which was one of the last critical facilities to regain their power after Superstorm Sandy, now will be able to provide the type of excellent care their patients are accustomed to receiving when the community needs it the most.”

The CHP rebate total of $950,000 will be paid out to the medical center at three critical milestones. An initial $190,000 will be paid when the equipment is purchased, followed by a second payment of $570,000 when the installation is complete and the remaining $190,000 one year after completion, upon confirmation that minimum efficiency thresholds are achieved

Bayonne Medical Center, a 278-bed, fully accredited, acute-care hospital located in Hudson County, will soon begin construction of its $3,457,450 CHP project. When completed, this 1 MW system will produce an estimated 7,600,000 kWh of electricity annually. In addition, nearly 40,000 MMBtus of waste heat will be recovered, offsetting the use of three existing dual-fuel boilers currently supplying the facility’s hot water load. Expected energy cost savings for the project total $490,313 in the first year of operation alone.

BPU awards rebate to Bayonne hospital’s energy system