Singaporean energy company SP Group said on Wednesday that it had secured the bid to operate and maintain the district cooling and heating system at the Future Medical City in Chengdu, Sichuan province, under a 10-year energy service contract worth 90 million yuan ($16.7 million).

The system, which has an installed cooling capacity of 4,800 refrigeration tonnes (RT), will supply chilled and hot water for cooling and heating respectively, as well as steam for sterilization and humidity control.

The system will be operational by the end of December.

Once operational, it can help reduce electricity consumption by 17.5 percent and natural gas usage by 40 percent compared to traditional cooling and heating systems, said the SP Group. This translates to an abatement of 880 metric tons of carbon emissions per year.