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Vital Energi Wins Major NHS Contract to Decarbonise South Tees Hospitals

Vital Energi has secured a significant contract with South Tees Hospitals NHS Foundation Trust to decarbonise two sites – Friarage Hospital and The James Cook University Hospital.

The project, funded through the Public Sector Decarbonisation Scheme (PSDS), will see the company design, build, operate and maintain air source heat pumps at both sites.

The work will deliver significant environmental benefits, with Vital Energi's proposals set to reduce carbon emissions at the Friarage by over 41% and exceed the required carbon reduction targets by 5% at James Cook.

The contract encompasses the supply and installation of a 1MW heat pump system at the Friarage and a 3MW system at James Cook, alongside the conversion of existing boiler systems and associated infrastructure upgrades. Work has already commenced on both sites.

Vital Energi is committed to making a positive and lasting impact on the areas and communities in which it works. As part of this project, the company has committed to significant spending with local suppliers and is donating funds to the Trust. Vital will also engage the Trust about climate change under its Climate Education programme and staff will provide volunteer support on Trust initiatives.

The project represents a substantial capital investment, with the Friarage element valued at £7.8 million, and James Cook at £7.1 million. These schemes form part of a wider package of energy efficiency measures funded by the PSDS grant.

Beyond the core heat pump installations, the project includes additional energy conservation measures at both sites, such as a rooftop solar PV installation, hydraulic system optimisation, and building management system enhancements.

The contract win strengthens Vital Energi's presence in the North East, complementing the company's recently opened Newcastle office.

Our aim is to become the Trust's long-term energy services partner. We’ll operate and maintain the assets we’ve installed over a 15-year period and are committed to providing continuous improvement. We will help them achieve their net zero objectives whilst delivering guaranteed cost savings and improved energy efficiency. In the past four years alone, we have delivered over £200 million of PSDS-funded projects across eleven hospital sites in the UK.

John Runniff, Account Development Director

We are delighted to be working in partnership with Vital Energi, who share our goals for improving sustainability. The introduction of the air source heat pumps at both The James Cook University Hospital and the Friarage Hospital will help us to reduce carbon emissions across our hospital sites to support the future healthcare needs of our population. The project is being delivered under the Carbon and Energy Fund (CEF) for which Vital Energi has preferred bidder status and contracts are expected to be finalised shortly. The company is providing interim services to both hospital sites whilst construction progresses, ensuring continuity of energy supply throughout the transition period. The main contractor on the project is Geoffrey Robinson, the multi-award-winning mechanical, electrical and construction contractor based in Billingham, Teesside. The selection of the company is further evidence of Vital Energi’s ambition to support the supply chain in the North East and grow its presence in the region where it has recently opened a new office.

Julian Verity, Head of Estates, South Tees Hospitals

With over 20 years’ experience delivering mechanical, electrical, and construction services directly to the Trust, we’re excited to continue that legacy through our partnership with Vital Energi. As a local business, we feel a great sense of pride in supporting and improving public facilities that many of our own staff rely upon. The NHS faces a significant challenge in meeting decarbonisation goals, and it takes strong partnerships like this—spanning funding, design, and on-the-ground delivery—to make those ambitions a reality

Andy Talbot, Managing Director of Geoffrey Robinson
James Cook Buffer Vessel
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