Provision of a deep geothermal solution

Overview

The Countess of Chester Hospital is working to meet its statutory net zero requirements in a number of ways. A partner has already been secured to address energy generation and usage on the site using the Carbon and Energy Fund framework. That partner is addressing energy infrastructure on the site, and included in that requirement is to provide an interface with the successful tenderer from this procurement (Deep Geothermal Solution Reference G1065). The Trust has also won a Public Sector Decarbonisation grant to assist with the geothermal installation. Under this geothermal procurement the Trust is seeking a development partner (The awarded supplier from this procurement) who will design a Salix compliant process to investigate and develop a geothermal supply for the hospital. It is envisaged that the successful Tenderer will propose a series of development stages or gateways. At the end of every gateway that meets Salix PSDS grant requirements the Trust intends to allow the development partner to draw down available PSDS funding. This way the Trust looks to minimise the development cost risks for the development partner, and to minimise the eventual unit cost of heat. Should the gateways all complete successfully, suggesting that there is a commercial opportunity to heat the hospital from geothermal energy, it is proposed that the parties will enter into a long-term Energy Services Agreement (ESA), that will become active as soon as the geothermal energy installation is complete and ready to supply heat to the hospital. The ESA will be subject to periodic reviews through the term. The estimated review period is 7 yearly. Under the potential Energy Services Agreement (Document 5, supplied under NDA as part of the tender pack) it is intended that any Energy Services Provider will own and maintain the installation for the contract term, and they may choose to enter into offtake agreements with other users so as to minimise the energy service cost to the hospital.