ENFRA and Beacon Health System Partner on 30-Year Energy-as-a-Service Agreement to Advance Sustainability and Efficiency

ENFRA has entered into a long-term 30-year Energy-as-a-Service (EaaS) partnership with Beacon Health System, marking a major step forward in the health system’s commitment to sustainability, operational excellence, and fiscal responsibility. The agreement, valued at $54.2 million, will transform energy operations at Memorial Hospital of South Bend and Elkhart General Hospital, two of Beacon’s flagship facilities.

“This partnership allows Beacon to focus on exceptional patient care while ENFRA assumes responsibility for the infrastructure that powers it,” said Frank Ferramosca, Executive Vice President of Development at ENFRA. “By designing, financing, and operating these systems over the long term, we’re delivering reliable performance, measurable savings, and long-term resilience for these hospitals.”

Under the partnership, ENFRA will design, build, finance, and operate key energy infrastructure upgrades that enhance reliability, reduce emissions, and generate cost savings for Beacon. Over the life of the agreement, the project is expected to deliver more than $191 million in utility expense savings, a 35.5% reduction in annual utility costs, while achieving a 26.2% reduction in carbon emissions across Beacon’s portfolio.

Key upgrades include:

• Installation of a 2.5 MW Combined Heat and Power (CHP) system that will reduce energy consumption by more than 18.8 million kWh annually and qualify for Investment Tax Credits under the Inflation Reduction Act.
• LED lighting retrofits, comprehensive retro-commissioning initiatives, and hydronic and air system efficiency improvements.
• Optimization of Beacon’s Building Automation System (BAS) to streamline building performance and enhance comfort.

“Partnering with ENFRA allows us to invest in sustainability and reliability while staying true to our mission of improving the health of our communities,” said Brian Spencer, Vice President of Facilities, Construction, and Real Estate at Beacon Health System. “This collaboration enables us to focus on patient care while achieving measurable progress toward our environmental goals.”

Importantly, this partnership allows Beacon to achieve these energy and operational gains without taking on new debt, providing a financially sustainable path to long-term savings.

The partnership between ENFRA and Beacon represents more than an investment in energy infrastructure; it’s an investment in the future of the community. By modernizing critical systems and reducing carbon emissions, this collaboration ensures that these Beacon hospitals remain resilient, efficient, and sustainable for decades to come. The savings generated through the Energy-as-a-Service model will allow Beacon to reinvest in patient care, technology, and community programs. Together, ENFRA and Beacon are demonstrating how innovation in energy can drive both environmental responsibility and stronger, healthier communities.