Next Generation powers cost and carbon savings

Leisure group Next Generation, which now incorporates David Lloyd Leisure, will save £900,000 and cut carbon emissions by 16,060 tonnes annually following a major green energy deal with UK-based cogeneration specialist Ener-g.

Ener-g will install and maintain all Next Generation and David Lloyd’s combined heat and power (CHP) requirements over an initial five-year period. This is part of a 20-year energy efficiency programme designed to reduce the leisure group’s long term energy costs by £18 million. Projected carbon savings to 2028 amount to 321,200 tonnes.

Contracts with individual leisure clubs are to be run on a discount energy purchase basis, where Ener-g provides the CHP system, installation, and maintenance without capital outlay and sells electricity generated at low cost. Typical savings compared to grid prices are more than 30 per cent, with an average club cutting its annual energy bill by £15,000. This enables customers to take advantage of lower energy prices and reduced emissions without needing to wait to find capital, making low carbon projects immediately achievable.

Next Generation and David Lloyd joined forces following a £925 million deal in June 2007 aimed at creating the UK’s leading racquets, health and fitness club group. The enlarged business operates 77 clubs in the UK and a further 10 sites across Europe, with two new clubs due to open soon.

Ener-g is well placed to build on its existing success after working with David Lloyd for seven years and Next Generation for five years. Currently, 36 Ener-g units are installed at David Lloyd centres, with two replacements in the pipeline, while ten Next Generation clubs are fitted with Ener-g CHP technology. Ener-g will install CHP technology in at least two  new build clubs over the next five years and initially retro fit CHP into a further ten.

Energy services consultancy B2B Energy Limited was instrumental in bringing the deal to fruition by working closely with both Next Generation/David Lloyd Leisure and Ener-g to produce a feasibility analysis demonstrating the effectiveness of CHP technology to the leisure group’s commercial activities. B2B’s continuing role involves its web-based product Energy Impact monitoring gas, electricity and water usage to maximise the efficiency of CHP units across the entire Next Generation/David Lloyd Leisure estate. 

Under the new contract, CHP will be installed across the majority of the group’s clubs – generating an expected total annual electrical output of 73,000,000 kWe and a heat output of 114,815,530 kWh each year.

CHP technology enables leisure centres to generate their own electricity, radically reducing carbon emissions. This method is highly energy efficient as it recovers heat created in the electricity generation process and avoids transmission losses because the energy is generated locally. In conventional power stations this heat is wasted because it disappears into the atmosphere. Instead, Next Generation and David Lloyd centres will use it to provide heating and hot water.

Commenting on the contract, Martin Kinnaird, group project/facilities manager said: “At a time when environmental management issues are increasingly at the heart of commercial decision-making, this CHP agreement with Ener-g Combined Power harnesses substantial bottom line benefits with the need to reduce emissions. Our new contract with Ener-g underscores the unique, long term relationship between our two companies and means that we have a powerful springboard to launch this enterprising and forward-looking initiative.” 

Ener-g Combined Power managing director Alan Barlow added: “Next Generation’s forward thinking approach to energy efficiency will pay both commercial and environmental dividends. The intention is to work together with the management team to make installation of CHP systems simpler and more cost-efficient, either during construction or soon afterwards. The cost of installing CHP systems will be picked up by Ener-g as part of the contract.”

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