Approval has been given for a �2.7m power plant to run Lister Hospital.

The East and North Herts NHS Trust has given the go-ahead for the combined heat and power plant on the Stevenage site which it says will reduce carbon emissions by 20 per cent and cut around �650,000 off running costs a year.

The project, part of a �150m redevelopment of the hospital, is due to be completed in the existing boiler house by autumn 2012.

Trust chief executive, Nick Carver, said: “When it comes to hospitals, the focus quite rightly is on the quality of services we provide to patients. But we run big, complex and energy hungry facilities and while we can ensure that our buildings are energy efficient, the new combined heat and power plant also allows us to make sure that we reduce the cost of generating electricity and heat on site significantly – as well as more than meeting our carbon emissions reduction target three years early.

“The savings are immediate and very significant, the plant’s construction will not disturb patient care and the project allows us to address �1.3 million in backlog maintenance to our heating and hot water supply systems. At a time when the trust has to make considerable financial savings whilst maintaining high quality clinical care, this project really does tick all the boxes.”