BAE Systems has started to build a combined heat and power plant at Portsmouth Naval Base in the U.K. in an effort to help the British defense ministry recycle energy, reduce carbon footprint and save as much as $5 million in energy costs.
The company said Friday the cogeneration system will also help the U.K.’s navy address energy and electrical needs once the Queen Elizabeth Class aircraft carriers arrive at the naval base.
BAE will construct the CHP facility under a $15.7 million contract amendment to the Maritime Services Delivery Framework contract awarded in 2014.
The MSDF contract requires the company to manage Portsmouth Naval Base and support half of the British navy’s surface fleet in the U.K. and worldwide.
BAE will convert a former boiler house into a CHP system that is slated for completion in 2018.
CHP is designed to generate electricity and heat from a single fuel source as well as preserve excess heat.