BAE Systems installing heat and power plant at Portsmouth, England

Aug. 4 (UPI) -- BAE Systems of Great Britain is starting to install a new combined heat and power plant at the Royal Navy base in Portsmouth, England.

The plant will be completed at the end of next year and will recycle energy, reduce carbon footprint and save the Ministry of Defense as much as $4.7 million in annual energy costs, BAE said.

"By developing this new facility we will be able to recycle energy consumption on the naval base as well as deliver a significant cost saving," Chris Courtaux, head of Engineering and Energy Services at BAE Systems, said in a news release. "This is an innovative solution to support the largest warships ever built for the Royal Navy.

"We continue to work closely with the Royal Navy to deliver long-term energy-cost savings to the naval base. This underlines our commitment to support the MOD's drive to create a more modern and energy-efficient naval base for the 21st century."

Britain's new Queen Elizabeth-class aircraft carriers will be homeported at Portsmouth, increasing the base's energy consumption.

The new combined heat and power plant will produce electricity and heat from a single fuel source and retain excess heat.

"As the largest energy consumer across defense, making a radical change to both the cost and carbon footprint of Portsmouth Naval Base is a rare and really exciting opportunity which would otherwise be wasted," Navy Capt. Iain Greenlees, head of Infrastructure at Portsmouth Naval Base said.

BAE is performing the work on the base under a $14.2 amendment to an existing contract with the Ministry of Defense.

BAE Systems manages Portsmouth Naval Base on behalf of the Royal Navy.