Eight projects across England are receiving a share of £68 million from the Green Heat Network Fund (GHNF), with the scheme’s most diverse mix of technologies to date. Today’s support will enable public and private sector bodies to harness waste heat from rivers, data centres, sewage works, and more.
JR Clynes building in Oldham
Innovation is front and centre of today’s announcement, as the GHNF supports eight heat network projects that draw on natural or man-made heat sources, strengthening long-term resilience and supporting modern, low carbon heating and hot water for buildings across the country.
Today’s awards build on more than £500 million in support already allocated by the GHNF. Combined, these schemes are expected to unlock over 4.7 million tonnes worth of carbon savings across England.
Martin McCluskey, Minister for Energy Consumers, said:
“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.
“Heat networks provide low-carbon, low-cost heating systems of the future, boosting growth and supporting businesses and building owners for years to come, helping drive down their bills.”
Ken Hunnisett, Head of Clean Heat at 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.
“As such, today’s announcement is good news for Triple Point, good news for DESNZ and good news for UK PLC…but brilliant news for the people of Barking, Camden, Islington, Milton Keynes, Oldham, Stockport, Suffolk, and Tyseley.”
The organisations receiving funding through the GHNF today:
- £3.9 million to Hemiko for the Tyseley heat network
- £14.65 million to Stockport Metropolitan Borough Council for the Stockport district heat network
- £3 million to Camden Council for the Maiden Lane heat network in King’s Cross
- £8.8 million to Oldham Metropolitan Borough Council for the Oldham low carbon heat network
- £1.1 to the London Borough of Islington for the Bevin Court heat network
- £17.6 million to 1Energy for the Milton Keynes Energy Network (MKEN)
- £9.1 million to L&Q Energy, for the Barking Riverside heat network
- £9.8 million to Suffolk County Council for the Ipswich district heat network.
More information about the heat networks that have been awarded funding through the GHNF today
Tyseley heat network (£3.9 million commercialisation and construction funding)
Taking advantage of the significant opportunities for harnessing waste heat in Tyseley, Hemiko has been awarded almost £4 million worth of support for an innovative new scheme in the area, powered by waste heat from a local data centre.
Initially, 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.
21 buildings will connect to the network initially, providing low carbon heat to public buildings, local schools, commercial and industrial buildings. As part of the project, Hemiko is working with local contractors while supporting local apprenticeships, trainee positions, scholarships, and jobs.
Toby Heysham, Hemiko CEO, said,
“Hemiko is proud to lead this pioneering project in Birmingham, collaborating with local partners to harness the region’s huge waste heat resource. 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.
Hemiko wants to make sure that we contribute to the communities that we work in. To this end we’ve launched an apprenticeship programme with South City College Birmingham, giving local people the skills and experience to be at the heart of the region’s low-carbon future.”
Stockport district heat network (£14.65 million commercialisation and construction funding)
Across two rounds of the GHNF, Stockport Metropolitan Borough Council has been awarded a total of £14.65 million commercialisation and construction funding from the scheme. The innovative heat network 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, creating the spine of a network stretching from the town centre to Stepping Hill Hospital. 87% of the initial network offtake will be from existing public sector buildings with the majority of those controlled by the local authority and NHS. This includes leisure centres, cultural sites, schools, colleges, and public courts. As well as decarbonising parts of the area, the Stockport project will support a huge number of local jobs, and a number of other UK wide jobs and apprenticeship positions.
Cllr Jake Austin, Cabinet Member for Housing & Environment at Stockport Council, said:
“Securing £14million to deliver a district heat network for the town centre and along the A6 is a huge step forward for Stockport.
“This investment will not only cut carbon emissions and improve energy security, but also help protect residents and businesses from rising energy costs. The scheme shows Stockport’s ambition to lead on green infrastructure, creating a cleaner, more sustainable future for our borough.”
Maiden Lane heat network (£3 million commercialisation and construction funding)
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. It represents a significant step towards Camden’s ambition for a low-carbon housing stock.
Paul McHugh, M&E Capital Works Programme Manager at Camden Council, said:
“We’re delighted that support from the Green Heat Network Fund has helped make this major investment at Maiden Lane possible. As well as delivering warmer, more efficient homes and cutting carbon emissions, the scheme will generate real benefits for the local community through new apprenticeships, training and job opportunities. This is about building a heating system that works better for residents today and supports Camden’s long-term climate ambitions.”
Oldham low carbon heat network (£8.8 million commercialisation and construction funding)
Oldham Metropolitan Borough Council (OMBC) has received GHNF support for a new low carbon heat network aiming to decarbonise a number of council, public, commercial, and residential buildings across Oldham.
The 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.
This new heat network project 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.
Cllr Abdul Jabbar MBE, Deputy Leader of Oldham Council, said:
“The Oldham Low Carbon Heat Network will be a key piece of energy infrastructure to future-proof Oldham Town Centre and help us wean ourselves off fossil fuels. It is also the anchor project for our forthcoming procurement of a Green New Deal Strategic Energy Partner and we are very excited about the potential opportunities this will open for Oldham borough.”
Bevin Court (£1.1 million commercialisation and construction funding)
London Borough of Islington has been awarded GHNF support to decarbonise an existing heat network serving 2 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 low temperature hot water generated by 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 Heat Interface Units (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 star listed building is part of a greater initiative in London Borough of Islington to reduce CO2 emissions. The borough secured Green Heat Nett Work Funding to help support decarbonisation and energy efficiency works to Bevin Court and Holford House.
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.”
Milton Keynes (£17.6 million commercialisation and construction funding)
Over £17.6 million in GHNF funding has been secured by 1Energy, with the support of Milton Keynes City Council, for the Milton Keynes Energy Network (MKEN). 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.
The project will produce energy savings for residents, public and private buildings. Initial connections include Milton Keynes University Hospital, The Open University and Milton Keynes City Council, as well as new build homes in plan. Plans, aided by funding from the GHNF, will also seek to connect several local schools and colleges, with over 30 buildings in the pipeline to be connected at a later date.
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. The scheme will provide a huge contribution towards Milton Keynes ambition to transition to net zero by 2030.
The heat pump will also be installed alongside large thermal stores to help improve the efficiency of the network further.
Jeremy Bungey, Executive Director of 1Energy, said:
“At 1Energy, our mission is to decarbonise heat across the UK – one of the toughest challenges in reaching net zero. As one of the six networks we’re delivering in cities across the country, the Milton Keynes Energy Network is a vital step in that journey. It will deliver efficient, low-carbon heating infrastructure that cuts emissions, improves energy security and supports public services like the NHS. It’s also an example of how we can repurpose waste heat into community value, powering a cleaner, healthier and more sustainable future.”
The funding will allow us to press on with the design of the energy centre and buried network, to reach commercial close, and be ready to start construction.”
Barking Riverside (£9.1 million commercialisation and construction funding)
L&Q, through its subsidiary L&Q Energy, has been awarded just over £9 million worth of GHNF support for a heat network set to connect to one of the UK’s most significant regeneration sites.
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, with BRL also being a key partner to the application process.
David Lewis, Executive Director of Property and Investment at L&Q, said:
“Today, Barking Riverside is becoming a blueprint for an innovative heat network that we hope will inspire future developments.
This project aims to lower residents’ energy bills, support the UK’s low carbon energy supply, and create new green jobs. We are grateful to the government for making this possible.”
Ipswich District Heat Network (£9.8 million commercialisation and construction funding)
Suffolk County Council are receiving support from the GHNF for a heat network that will harness the naturally occurring heat from the River Gipping.
Via a water source heat pump, the project 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.
It is expected that the network will provide low carbon heating to a diverse range of buildings across the town, including council buildings, hotels, religious buildings, offices, colleges, theatres, and more.
The heat network is also set to support over 50 local jobs.
Councillor Richard Rout, Suffolk County Council’s Cabinet Member for Devolution, Local Government Reorganisation and NSIPs, said:
“This will be a significant project for Ipswich, one which the county council is proud to have been leading on since 2021, and has now secured a successful funding bid.
“By harnessing natural occurring heat from the River Gipping, there is the potential to provide over 35 GWh of heat each year to public buildings across Ipswich – enough to power around 40 buildings in the first phase, ranging from offices to community buildings.
“This can deliver hugely positive upgrades to the town: affordable energy for businesses, protection from volatile energy markets, jobs and growth for the local economy and placing Ipswich as one of the country’s forward-thinking towns when it comes to ensuring local energy security.”
Notes to editors:
For all media enquiries, please contact: comms@tp-heatnetworks.org.
The Green Heat Network Fund (GHNF) is a multi-year, capital grant fund that opened to applicants in March 2022 and is anticipated to run to 2030. It provides support to organisations in the public, private, and third sectors in England. The GHNF is a key part of plans to reduce carbon emissions from heating homes and businesses by 2050. The scheme will also play a key role in progressing projects located in heat network zones, areas where the Government has identified heat networks as offering the lowest cost, low carbon heating option. In contrast to the now closed Heat Networks Investment Project (HNIP), the GHNF will only fund heat network projects where there is a low-carbon heat source.
For more information about Triple Point Heat Networks Investment Management, applying for GHNF support, and successful projects under GHNF and HNIP, visit: www.tp-heatnetworks.org.
A high-level summary of GHNF https://www.gov.uk/government/publications/green-heat-network-fund-ghnf
For further information about the scheme and to join the TP Heat Networks mailing list to receive updates, please contact us: enquiries@tp-heatnetworks.org.
