Health and fitness group, David Lloyd is using an Energy Performance Investment contract (EPI) to help tackle its carbon emissions. This pay as you save deal means that David Lloyd Leisure benefits from reduced energy use and cost reductions from the outset.
The group will implement energy and carbon saving technologies at 35 sites across the UK without any upfront cost being entirely funded through third parties.
Working with the funding solution provider Decarbon, David Lloyd Leisure has chosen energy efficiency equipment to reduce its energy consumption and carbon emissions. Not only will this improve its operational efficiency, it will also enhance its CRC League Table performance. Energy and carbon firm Utilyx will provide an independent view of the value of the savings.
David Lloyd Leisure has contracted energy saving solutions from powerPerfector and Dantherm Air Handling, with capital funding through Decarbon. These technologies will deliver ongoing energy savings and will remain with David Lloyd Leisure at the end of the fixed term contract.
Paul Guyer, group property director, David Lloyd Leisure, said, “Innovation and environmental performance is very important to us and we are committed to delivering a 20% reduction in our carbon footprint from a 2010 baseline by 2014. The signing of the EPI is anticipated to deliver two percent of this target, equating to 2,200 tonnes of carbon, and will allow us to utilise our capital budget on bespoke projects within our clubs.”
Daniel Saunders, managing director at Decarbon, said, “This is an exciting and innovative way for any business to benefit from energy saving. The client avoids exposure to performance risk and capital rationing, and benefits from reduced operating costs relating to energy and carbon.”
Chris Bowden, chief executive at Utilyx, added, “This is exactly the type of pioneering approach we need in the UK to help companies achieve their demanding carbon targets.”
Chris Harding, head of Channel Partners at powerPerfector, said, “Decarbon have structured a very innovative solution that will see David Lloyd Leisure benefit from reduced costs and carbon.
“This deal demonstrates that private sector finance can unlock both cash flow and improved bottom line profits, off balance sheet, with technologies that guarantee performance. We are delighted to be in a three way partnership with David Lloyd to reduce their cost and carbon.”
Ian Furmidge, managing director at Dantherm Air Handling, said, “This sort of innovative financing is vital if the UK is to reduce energy demand. By taking the cost out of energy efficiency there is no excuse for other organisations not to follow the example being set by David Lloyd Leisure and gain from the commercial and environmental opportunities available to them.”