Capstone Green Energy has announced the sale of four Capstone C65 microturbines for Black River Memorial Hospital (BRMH) in Wisconsin. By leveraging the federal Investment Tax Credit (ITC) programme, which helps offset upfront costs, BRMH is taking a significant step toward enhanced energy efficiency and long-term sustainability.
Hospitals in North America are among the most energy-intensive buildings, with significant energy use due to their 24/7 operations and the demands of advanced medical equipment and stringent environmental controls.
Energy intensity:
According to the US Environmental Protection Agency (EPA) ENERGY STAR programme, hospitals consume an average of 130,000 BTU per square foot annually. Some facilities exceed 200,000 BTU per square foot depending on operational demands. These statistics are based on the ENERGY STAR healthcare benchmarking initiative .
Electricity usage:
Grumman|Butkus Associates’ annual hospital energy survey highlights that electricity consumption ranges widely among hospitals, from less than 20 kWh per square foot to over 40 kWh per square foot. The average consumption is approximately 27 kWh per square foot per year. This data has been collected from over 130 hospitals as part of an ongoing energy performance benchmarking project .
Carbon footprint:
The same survey reports that hospitals maintain an average carbon footprint of 50 to 60 pounds of CO₂ equivalent per square foot annually. Although emissions have decreased by 18% since 2018, further reductions require substantial retrofits and transitioning to renewable energy sources, as outlined in Grumman|Butkus Associates’ energy analysis reports .
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Cost savings through efficiency:
Hospitals that have implemented energy-saving measures report significant financial benefits. For example, New York Presbyterian Hospital achieved annual savings of US$1.77 million through energy efficiency initiatives, according to the ENERGY STAR programme. These projects often include lighting upgrades and HVAC optimisations, demonstrating the cost-effectiveness of sustainable practices .
Water usage trends:
Hospitals have seen a reduction in water usage from over 60 gallons per square foot in 2006 to approximately 36 gallons per square foot in 2020. This decline is attributed to advancements in water-efficient technologies, despite rising costs of water services due to ageing infrastructure upgrades. These trends are documented in Grumman|Butkus Associates’ white papers on water management .
The project
Vergent Power Solutions, Capstone’s distributor in the Upper Midwest, New England and Eastern Canada, collaborated with BRMH to develop this exciting clean energy project. Vergent Power Solutions secured the order in December of this year and expects the system to be commissioned by May 2025. The microturbines will provide 260kW of on-site power generation while capturing thermal energy for on-site hot water production, marking a milestone in the hospital’s efforts to reduce greenhouse gas emissions and improve operational efficiency by displacing higher emissions emitting hot water boilers.
The microturbines will be deployed in a combined heat and power (CHP) application featuring Capstone’s patented integrated heat recovery modules (HRMs), which will recover the microturbine’s exhaust heat, effectively converting it into hot water, thus offsetting 1.6 MMBTU/hr of thermal load that was provided by gas fired hot water boilers. By generating baseload electricity on-site at a higher efficiency than grid power, the system will significantly lower BRMH’s energy costs while supporting its commitment to reliability and sustainability. This innovative solution is expected to reduce the hospital’s greenhouse gas emissions by an estimated 550 metric tonnes annually, equivalent to removing approximately 120 cars from the road each year.
“With the combination of cutting-edge technology and federal incentives, this project reflects our hospital’s commitment to sustainability and operational excellence,” said Carl Selvick, President and CEO at Black River Memorial Hospital. “We are proud to lead by example in implementing energy solutions that benefit both our community and the environment.”
“The installation at Black River Memorial Hospital underscores the growing trend of healthcare facilities turning to clean technology to address the energy trilemma of resiliency, affordability and sustainability. We are excited to play a part in their journey of lowering their carbon footprint with a financial return that makes sense,” said Vince Canino, President and CEO of Capstone Green Energy. “This project highlights the critical role that innovative energy solutions, supported by incentives like the Federal ITC, play in enabling organisations to enhance energy security, reduce emissions and manage costs in an increasingly demanding energy landscape.”
A key factor in BRMH’s decision to adopt this technology was the availability of a 40% tax credit through the federal Energy Investment Tax Credit programme. This incentive, available for qualifying projects placed in service or safe harboured by the end of 2024, significantly lowered the upfront investment costs, making the microturbine-based CHP system an attractive and practical solution for BRMH.
