VA Ann Arbor Healthcare System

At a Glance
• System Configuration: 1 × C1000 Dual Mode Capstone Microturbine System with an integrated Heat Recovery Steam Generator (HRSG)
• Thermal Output: >2,258 lbs/hr of high-pressure steam at 75 PSIG for sterilizers, domestic hot water, and campus heating
• Financial Impact: ~$370,000 / year in direct energy savings (~$31,000/month)
• Long-Term Service & Maintenance: Maintained continuously by Veristar to ensure maximum operational uptime and sustained thermal capture


The Challenge
The VA Ann Arbor Healthcare System (VAAAHS) encompasses a 1.1 million-square-foot medical complex featuring 114 acute care beds, a 40-bed Community Living Center, outpatient clinics, research facilities, and administrative buildings. Operating in Michigan - a state historically subject to frequent weather-related power outages - the medical center needed to improve energy efficiency, lower campus utility expenditures, and enhance facility resiliency. While emergency diesel generators are mandated for critical life-safety systems, the VA needed a continuous, clean-burning solution to power secondary loads, auxiliary buildings, and campus outdoor lighting during outages without relying solely on limited diesel reserves.


The Solution
VAAAHS deployed a 1 MW Combined Heat & Power (CHP) system anchored by a Capstone C1000 microturbine integrated with an automatic Heat Recovery Steam Generator (HRSG).
• 24/7 Baseload Generation: Operates continuously in parallel with the local electric grid, supplying 1,000 kW of clean, on-site electricity across the 1.1 million sq. ft. campus.
• Integrated Steam Recovery: Captures 535°F exhaust gas to produce over 2,258 lbs/hr of steam at 75 PSIG, fulfilling critical hospital process loads, building space heating, and domestic hot water needs.
• Dual-Mode Resiliency: Works in tandem with legacy emergency diesel generators during main grid disruptions, taking over less critical auxiliary loads and outdoor security lighting to extend site-wide fuel autonomy.
• Ultra-Low Emissions Profile: Delivers near-zero NOx and carbon emissions using pipeline natural gas, supporting the Department of Veterans Affairs' national sustainability and decarbonization directives.


The Results
• $370,000 Annual Utility Savings: Saves approximately $31,000 per month in utility expenses, freeing public healthcare capital to support veteran care and clinical services.
• Enhanced Hospital Resiliency: Protects non-critical and auxiliary facilities during regional power disruptions without over-taxing life-safety diesel generators.
• Displaced Boiler Fuel Burn: Replaces central natural gas boiler firing with recovered exhaust heat, significantly lowering the campus carbon footprint.
• Long-Term Asset Optimization: Maintained by Veristar under full-coverage protection plans, ensuring continuous 24/7 availability for over a decade since its 2013 commissioning.