Green Heat Network Fund awards £68 million to English projects

Eight projects across England have been awarded a share of £68 million from the Green Heat Network Fund, in what the GHNF described as the most diverse mix of technologies to date.

The awards build on more than £500 million in support already allocated by the GHNF. When taken as a whole, these schemes are expected to unlock over 4.7 million tonnes worth of carbon savings across England, GHNF said.

Martin McCluskey, Minister for Energy Consumers, welcomed the funding:

By harnessing waste heat from rivers, sewers and data centres, these innovative projects can play a key role in our mission to reach clean power by 2030.”

Ken Hunnisett, Head of Clean Heat at funding partner Triple Point, said:

A heat network sector that has the potential to attract £100 billion of inward investment will deliver huge benefits to the UK economy and lower the cost of the transition for all. The greatest benefit will be seen in the places where the networks are being developed, however. It’s those communities that will benefit from the lions-share of good quality long-term green jobs that infrastructure investment at this scale will unlock and from cleaner air as we consign gas boilers to the history books.”

The successful projects

• £17.6 million to 1Energy for the Milton Keynes Energy Network (MKEN)

Here, funding will go towards accelerating the design of the energy centre and heat network, with an aim to begin providing low carbon heat to buildings in the city from 2028 using air source heat pump technology, including Milton Keynes University Hospital, The Open University and Milton Keynes City Council, as well as newbuild homes.

All buildings connected to the scheme will observe an initial 75% reduction in carbon dioxide emissions and an 80% reduction in nitrous oxide emissions compared to a gas boiler installation, improving the air quality and health of the city, GHNF says. The heat pump will also be installed alongside large thermal stores to help improve the efficiency of the network further.

• £14.65 million to Stockport Metropolitan Borough Council for the Stockport district heat network

This project will use heat pumps to extract waste heat from a local sewer system. It is also benefitting by being part of the Advanced Zoning Programme run by DESNZ. With construction set to begin as early as 2026/27, the network, once complete, will support the ongoing regeneration and redevelopment of Stockport town centre and  87% of the initial network offtake will be from existing public sector buildings.

• £9.8 million to Suffolk County Council for the Ipswich district heat network.

This heat network will harness heat from the River Gipping, and via a water source heat pump, will provide 35 GWh of heat to public and residential buildings across Ipswich, with the first buildings set to connect as early as 2028.

As part of the project, the Council will be continuing to work with local colleges and the university to support the development of green skills locally, offering vocational and academic training and qualifications in the district heating sector.

• £9.1 million to L&Q Energy, for the Barking Riverside heat network

The Barking Riverside heat network will recycle waste heat from a local Energy-from-Waste plant, supplying low carbon heating to up to 18,500 new homes in East London’s vibrant new community. The network will also have the potential to connect to local amenities, including commercial space, new schools, offices, and event spaces.

The Barking Riverside development will span 179 hectares of land within the London Borough of Barking and Dagenham. Construction of the network is set to begin in 2026. The heat network project will also support 26 new local jobs, and several apprenticeships and trainee positions.

The new neighbourhood is being led by master developer Barking Riverside Limited (BRL), a joint venture between L&Q and the Mayor of London.

• £8.8 million to Oldham Metropolitan Borough Council for the Oldham low carbon heat network

This ambitious project will use a combination of air source heat pump and biomass boiler technology to deliver over 27 MWh of heat per year. The project will help the borough reach its carbon neutrality target by 2030, while providing low carbon heat to a total of 27 connections, including over 1,300 social homes.

The new heat network forms a core part of Oldham’s wider £265 million Heat Network Zone, aiming to deliver low carbon heat not just in Oldham Town Centre but across the local authority area.

• £3.9 million to Hemiko for the Tyseley heat network

Here, thermal energy generated from the data centre’s cooling processes will be upgraded using a 1.2MW water source heat pump to decarbonise a number of buildings across Tyseley. In the future, the project will also help to support heat network zoning in Birmingham City Centre by expanding to bring low carbon heat from Tyseley into the city centre, where there is less waste heat available.

Toby Heysham, Hemiko CEO, said:

The Tyseley Energy Park exemplifies the circular energy economy in action. The city’s waste goes in, heat and power come out. By bringing heat from outside the city centre into Birmingham’s busiest districts, we’re not just cutting emissions, we’re giving access to the locally wasted heat – access that homes and businesses would not be able to get connected to without a heat network. This scheme is about creating opportunities and leaving a lasting infrastructure in the West Midlands that links waste heat to the customers that so desperately need it.

• £3 million to Camden Council for the Maiden Lane heat network in King’s Cross

The Maiden Lane estate in King’s Cross is set to benefit from a £15 million heating network upgrade, supported by £3 million GHNF support. The project will modernise the estate’s ageing communal heating and hot water system, which has become costly to maintain and prone to breakdowns, by creating a single, efficient energy centre.

The heat network will use air source heat pump technology to provide low carbon heat and hot water to the estate, alongside high-efficiency back-up boiler capacity. Each property will receive a new Heat Interface Unit (HIU), internal pipework, and replacement radiators with thermostatic controls. These upgrades will give residents improved comfort, greater control of their heating, and fairer, usage-based billing. The scheme is expected to cut carbon emissions by around 40 per cent compared with the current system, while improving long-term resilience and reducing running costs.

• £1.1 million to the London Borough of Islington for the Bevin Court heat network

The funding will further decarbonise an existing heat network serving two housing blocks, serving 130 dwellings. The project will replace the gas boiler with four air source heat pumps providing 2MW capacity for the residential buildings. Using a cascade system, the air source systems will be further heated by four water source heat pumps, providing a consistent supply of low carbon heat and hot water. As part of the project, each dwelling will also be fitted with HIUs, providing a seamless transition to low carbon heat for local residents.

Grigorios Kravvas, Senior Mechanical Engineer, London Borough of Islington, said:

Works to Bevin Court which is a Grade 2* listed building is part of a greater initiative in London Borough of Islington to reduce CO2 emissions…The proposed works will help reduce emissions and improve the energy performance of all dwellings who participated in the scheme. Beyond the immediate benefits the project will help provide beneficial data on the new low carbon technologies used within the project.”