The new 45MW combined heat and power (CHP) plant is expected to increase heating and cooling system efficiencies and help reduce greenhouse gases. TECO projects its CHP system will decrease local emissions by almost 83,000 metric tons of carbon equivalent per year.

Steve Swinson, president and CEO of TECO, said: “The CHP system is the cornerstone of our $368m Phase I expansion plan. When Phase I is complete, TECO will have one of the most efficient combined heat and power plants in the country, ensuring TECO’s energy cost will be the most competitive in our area.

“The funding couldn’t have come at a better time or be more welcome. It is affirmation we’re doing the right thing, and our customers – who comprise the largest medical center in the world – will benefit.”

TECO provides district heating and cooling service to buildings on the Texas Medical Center campus in Houston, Texas. The company operates two heating and cooling plants with a combined capacity of 80,000 tons of chilled water and 762,000 lbs/hr of steam production.