Delivering 80% energy efficiency with CHP

Overview

Accord Healthcare is a fast-growing global pharmaceutical company that develops, manufactures and distributes generic, biosimilar and added-value medicines in over 85 countries worldwide, helping to improve access for patients to vital pharmaceutical care at the point of need.

Accord has a large manufacturing, packaging and logistics presence both in the UK and across the EU. This includes a 22 acre site at Fawdon, Newcastle upon Tyne. A location for packaging, formulation, sterile facilities, and warehousing, Fawdon has undergone significant investment by Accord and recently the focus has switched to optimisation of energy usage.

In-depth feasibility studies showed that Fawdon could achieve huge cost and efficiency gains from a Combined Heat & Power (CHP) unit and after engaging an independent energy consultant a tender exercise was launched with eight suppliers.

A solution to satisfy all requirements

“Our procurement criteria included innovation, quality, health and safety, and cost. We applied these to each supplier and Centrica Business Solutions came out on top,” says Joseph Leddy, Senior Director for Health and Safety at Accord Healthcare. “Another key factor was supplier stability and Centrica Business Solutions' credentials included more than 30 years of experience and a portfolio of more than 3,000 CHP unit installations.”

The Centrica Business Solutions CHP unit is situated adjacent to the site’s energy centre which has two ten-ton boilers that provide heating and cooling for the entire facility.

“Centrica Business Solutions’ installation was very professional with excellent project management. Inspections and vetting throughout the COVID-19 pandemic were second to none,” adds Leddy.

Technical overview

The Centrica Business Solutions CHP cogeneration unit features a generator to produce a reliable electricity output. The heat by-product, which is normally lost, is used to create a cost-efficient heat supply in line with Accord’s cost-saving and energy optimisation credentials. It produces 770kWe of power, 416kw of heat, and 550kg of steam. To gain maximum benefit from every kw of fuel used, the project also includes a waste heat boiler.

Serious goals, serious results

Accord Healthcare anticipates the CHP will deliver between 80% and 90% of the electricity required by the Fawdon site. The unit was acquired under a five-year Discount Energy Purchase (DEP) agreement with Centrica Business Solutions and during that period anticipated cost savings on electricity spend will be 10%. This saving is expected to increase after the five-year period.

The company’s target is to reduce energy usage per revenue by 25% by 2025 and the CHP unit supports this goal, as Leddy explains: “For us, it’s about efficiency. There is a series of drops in efficiency when taking the electricity from the grid but if we use CHP to generate it on site, we believe that we achieve almost 80% efficiency per kWh, after all, grid efficiency is only approximately 50%. This is a good example of how the efficiency gains we achieve and utilising less kWh will feed into our corporate responsibility goals and that has been a key aim of this project from the outset.

“Another huge benefit for us was that, while other suppliers could offer just part of the project, Centrica Business Solutions could offer a full turnkey solution with all the necessary services in-house.”