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Hershey Medical Center, 7.5 MW CHP System - Case Study

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Sep. 9, 2025

Penn State Hershey Medical Center was established in 1963 on a 550-acre campus and has 548 licensed beds. Penn State Hershey Medical Center is known as the premier provider of medical care in the central Pennsylvania area, recognized as the number four hospital in the state and home to PA’s only medical facility accredited as both an adult and pediatric Level 1 Trauma Center. Demonstrating their commitment to both top notch patient care and sustainability, the medical center invested in a cogeneration facility to minimize their energy footprint.

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Quick Facts

  • LOCATION: Hershey, PA
  • MARKET SECTOR: Hospital
  • FACILITY SIZE: 7.5 megawatts (MW)
  • FACILITY PEAK LOAD: 22 MW
  • EQUIPMENT: Combustion Turbine
  • FUEL: Natural Gas
  • USE OF THERMAL ENERGY: Steam for Sterilization, Heating, Domestic Hot Water and Reheat
  • CHP TOTAL EFFICIENCY: 70.7% (unfired HRSG)
  • ENVIRONMENTAL BENEFITS: Reduce greenhouse gases and air pollutants
  • NET PROJECT COST: $21 million
  • YEARLY ENERGY SAVINGS: $2.57 million
  • PAYBACK: 8 years
  • CHP IN OPERATION SINCE: 2018

Reasons for CHP
Ready to replace their aging electrical infrastructure, Penn State examined their ability to withstand extreme weather conditions and other external forces, and determined that they needed to fortify their systems and considered cogeneration as a solution. Located at the southwest corner of the Hershey campus, the natural gas-fired CHP plant generates 54% of the hospital campus power usage and 96% of the steam usage, while providing the hospital with the benefit of reduced annual utility costs, improved energy supply resiliency, and contribution to lower carbon emissions. The CHP plant reduces campus carbon emissions by 83,120 metric tons, equivalent to the annual residential electric use of 27,662 people. It is worth noting that through Act 129, the state’s energy efficiency resource program, Hershey Medical Center has received just under $1.5 million in incentives for the CHP project ($940,000 grant from the Commonwealth of Pennsylvania and another $500,000 from PPL, the local utility).

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