The Heat Networks Investment Project (HNIP) pilot ran from October 2016 to March 2017. Nine applications were successful in the pilot phase. Total awards are worth over £24 million.
Barking Town Centre Strategic Distribution Energy Scheme
Award: £5,000,000 of grant funding for commercialisation and construction
Barking and Dagenham Council has been awarded £5m to co-fund the creation of a landmark low carbon UK district heating scheme in Barking Town Centre. The project has been classified as strategically significant by the GLA and builds on the borough’s ambitions to become the green capital of London. It involves modification of the existing energy centre on the Gascoigne East Estate, Weavers Quarter, and the construction of a new large-scale energy centre. Together these will supply over 30 GWh per year of low carbon heat into a new Barking Town Centre wide heat network, serving a mixture of new developments comprising over 8,000 homes, together with existing buildings. Initially, supplies of heat will come from gas-fired combined heat and power units, but over time these will be replaced with existing sources of waste heat in the borough to deliver zero carbon heat supplies.
Councillor Darren Rodwell, Leader of Barking and Dagenham Council:
“I am delighted to see our ambitions being supported in this way and look forward to seeing our vision for a low carbon borough come to fruition. We’re always striving for a cleaner, greener borough, for the benefit of our residents, and the delivery of this scheme is a major step forward for us.”
Bristol Redcliffe Heat Network
Award: £3,600,000 of grant funding for commercialisation and construction
The extension of the Bristol Redcliffe heat network will involve the expansion of the existing network and the installation of a second low carbon energy centre to supply heat to a number of new commercial developments in the area. The current scheme, which utilises biomass boilers, was completed in 2016 and supplies 700 social housing properties.
The extension will use the additional capacity within the current energy centre as well as the new energy centre, located within the council’s offices, which will include new gas CHP and back up boilers. The scheme will also include future proofing works to enable the network to be connected to additional existing loads and proposed new developments around Bristol Temple Meads. In addition to this section of the network the council will also be expanding to new areas of the city which will be served by new renewable sources such as water source heat pumps and geo-thermal technology.
Cabinet Member for Energy, Transport and The Green New Deal, Councillor Kye Dudd:
“We know that heat networks make a big impact on our city’s use of carbon. By providing low carbon sources of heat we are helping to make a big shift towards building a carbon neutral Bristol by 2030.”
Read more about the scheme here.
Leeds City Council
Award: £2,400,000 in grant funding for construction
The Leeds PIPES scheme is a recently-completed district heat network that has already begun delivering heat to Leeds. It currently comprises a network of around 16km of pipework, delivering low carbon heat and hot water, generated from waste steam created by the Recycling and Energy Recovery Facility (RERF), to commercial properties and council-tenanted properties. HNIP funds will be used to extend the network into the city centre, connecting five council buildings and allowing other existing buildings and developments to connect in the future. The pipework therefore will be sized to enable a future extension to the South Bank, an area of major development and regeneration. The extension of the network comes at a key time, as Connecting Leeds will deliver extensive highways remodelling in the city centre.
Councillor James Lewis, Executive Member for Resources:
“It’s fantastic to have secured funding to extend the district heating. This expansion means that we will be able to connect more of the city’s buildings to the Leeds PIPES network and further reduce the use of individual, fossil fuel powered boilers—helping building owners save money on energy, improve local air quality and reduce the city’s carbon footprint.”
Read more about the scheme here.
Veolia: South East London Combined Heat and Power Heat Network
Award: £5,500,000 of grant and loan funding for commericalisation and construction
The network will consist of a spine running from the plant to Lewisham and connections to an anchor load comprised of commercial and residential units. This will create a network of approximately 1.7 km capable of delivering in excess of 30 MW of low carbon heating demand. The proposed heat network will provide immediate and long term carbon reduction to these developments compared to alternative heating options while providing good value heating to residents and businesses.
Richard Kirkman, Chief Technology and Innovation Officer, Veolia UK and Ireland:
“We welcome this award which will contribute to the expansion of the SELCHP district heating network and demonstrates the vital role modern energy from waste plants are playing in heat decarbonisation. This is a major factor in achieving the net zero goals, and showcases how energy from waste technology can meet this ambition by lowering fossil fuel use and reducing climate changing carbon emissions. More importantly it makes use of non recyclable household waste, so communities get the benefit of reliable and affordable heat generated from the waste they discard. If all non recyclable waste was diverted from landfill to energy recovery, the UK would save in the region of 880,000 tonnes of CO2 per year.”
Bristol City Council: Old Market Heat Network
Award: £6,590,000 of grant funding for commercialisation and construction
A new network in Bristol, as the City Council seeks to install a city centre-wide provision of low carbon heat through heat network pipes. Designed to supply low carbon heat from the Energy Centre at the current Castle Park Council Depot site, at full build out the energy centre will comprise of a Water Source Heat Pump, Gas CHP and Gas peak and reserve boilers. The Phase 1 Old Market Network will supply 17 buildings including 4 residential blocks, 10 office blocks, 2 hotels and 1 school with an annual demand of 14.4MWh, through 1.6km of DH pipe. Over the next 25 years, the Old Market Network Phase 1 project will save around 76,911 tonnes of carbon. In the longer term, there may be more opportunities for new low or zero carbon sources of heat to connect to the network.
Councillor Kye Dudd, Cabinet Member for Energy and Transport:
“Our Bristol heat network has such a vital role to play in our city’s journey to carbon neutrality. The council has invested over £7 million in this infrastructure over the last five years and will continue to expand the network to serve new communities with low-carbon heat. This new funding from BEIS is so welcome to support the growth of the network and will enable us to innovate with new technology that will provide zero carbon heat to a number of new developments in the city. It’s also very exciting to see old fossil fuel infrastructure like the Bedminster coal mine being considered for use to provide zero carbon heat for the future – another example of Bristol’s ability to find pioneering ways to tackle the climate emergency.”
Read more about the scheme here.
Energetik: Meridian Water Heat Network
Award: £14,760,000 of grant and loan funding for construction
Meridian Water Heat Network will supply waste heat to at least 15,000 homes, with potential to rise to in excess of 30,000 over the lifetime of the network. The project is planned to be operational in 2022 and will be extended as new developments are built. Connection to the North London Waste Authority’s new Energy Recycling Facility (ERF) when built in 2026 will provide a very low carbon heat supply.
The energy centre will initially use gas fired boilers, enabling the heat network to supply customers with heat from 2022 before connecting to the ERF to supply up to 60MW of waste heat. The network’s construction will enable 8.9km of heat network piping to be installed, eventually serving multiple large housing developments. Once the ERF is connected in 2026, the equivalent annual carbon savings will exceed 2200 tonnes and will rise rapidly over the next 10 years to over 5700 tonnes per annum in 2036.
“We’re thrilled to announce that Energetik has been awarded a £14.76 million share of the Heat Networks Investment Project (HNIP) fund. On the 6th of February, Triple Point formally announced the first beneficiaries and our company stands amongst the seven successful applicants! All beneficiaries have been described as promising and highly deliverable heat network projects and have been selected to receive a first share of the £320 Million fund. We’re truly honoured to be acknowledged on a national level. This funding will be used to unlock the next phase in our business plan helping to build our Meridian Water heat network.”
Read more about the scheme here.
Peel Energy, part of Peel L&P: Liverpool Waters Heating Network
Award: £1,300,000 of grant funding for construction
Peel Energy, through its supply company (ESCo) Mersey Heat is delivering a district heat network to serve Peel L&P’s Liverpool Waters development and surrounding areas including 2,000,000m2 of development floorspace, 9,000 residential units, 315,000m2 of business space and 53,000m2 of hotel and conference facilities. The awarded funding will support the supply of heat to multiple residential and commercial buildings with a temporary energy centre. A planned transition to a low carbon heat source will occur in the future to reduce carbon emissions.
Jon Burley, Commercial Director at Peel Energy, part of Peel L&P:
“It’s great to see the Government get behind clean growth projects across the country and in Liverpool, this funding will help us to deliver the first phase of our Mersey Heat network to benefit businesses and thousands of residents with low-cost heating and ultimately support our drive to create low carbon communities and make the City Region a greener place to live, work and invest.”
Read more about the scheme here.
Award: £5,909,000 grant funding for commercialisation and construction
The grant will support the commercialisation and construction of the first major, strategic eastward expansion of the heat network within the Gateshead District Energy Scheme. This will enable the scheme to supply lower cost, lower carbon heat to an additional 12 GWh of heat load by 2030 represented by four Council buildings, a care home and, in time, up to 1250 new private homes within the Exemplar Neighbourhood, Gateshead’s largest new-build housing development site. Significant decarbonisation is achieved by the installation of a 6MW mine water source heat pump, to provide geothermal heat into the network, displacing the gas boiler generated heat, as well as reducing the operating hours of the existing 4MW gas CHP engines.
Councillor John McElroy, Gateshead Council Cabinet member with responsibility for energy:
“The council has always seen the development of low-carbon energy as key to meeting our climate change goals, but also in generating lower-cost energy for residents and organisations in Gateshead. This grant allows us to take this one step further. This new proposal uses a source of energy that is already under our but which is virtually unused. Thanks to the continued development of heat pump technology, we are at last able to properly exploit this abundant untapped heat source and use it to warm thousands of homes and businesses in Gateshead.
“We have been looking at this proposal for some considerable time, so the award of this grant is timely and its means we can now begin to bring it to fruition. There must be hundreds of miles of abandoned mine workings beneath Gateshead and many of them are flooded providing access to a sustainable source of heat, so there is huge scope for more initiatives like this. It is particularly satisfying that we can exploit the forgotten remains of an old industry – and a heavily polluting one at that – to create clean green energy.”
Read more about the scheme here.
Bridgend Town Heat Network
Award: £1,241,000 grant funding for commercialisation and construction
Initially, the scheme will serve public sector buildings in the town centre which includes Bowls Hall, Civic Centre offices, Bridgend Life Centre (leisure centre) and a new development. The network will allow for the expansion to other buildings in the immediate vicinity including local business and residential units. The energy centre will be based at the Bridgend Life Centre and initially use gas fired CHP with back-up gas boilers. These will be replaced with a larger CHP unit and new backup/ peak boilers with the addition of thermal storage tank at the rear of Bridgend Life Centre as the scheme develops. Key objectives for the scheme are to continue to provide reduced energy costs for customers, provide carbon emissions savings compared to alternative strategies and, over time, further decarbonise heat supplies.
Councillor Richard Young who is Cabinet Member for Communities:
“Bridgend County Borough Council is proud to be the first recipient of HNIP funding in Wales. The Bridgend Town Heat Network Project is a key part of our plans to decarbonise heat within Bridgend and forms part of our Smart Energy Plan developed with the support of the Energy Systems Catapult through the Smart System and Heat Programme to drive forward and capture the economic and social benefits of decarbonisation. The HNIP funding will enable us to progress the scheme through its commercialisation phase by first accessing £241,000 funding and, should that phase meet all necessary requirements, then to place Bridgend County Borough Council in a position where it can determine whether to move the project through to, and beyond, construction and accept the further £1m of funding.”
Read more about the scheme here.
Cardiff Town Heat Network
Award: £6,628,000 grant funding for construction
The proposed Cardiff Heat Network begins at Trident Park Energy Recovery Facility (ERF) plant in Cardiff Bay, spreading across the Bay area before crossing the main Cardiff to London railway line, as part of a later phase. Funding from HNIP will support Phase 1 of the network which will reach to the area immediately south of the railway line. Utilising the ERF plant will allow the network to supply the 12 GWh per annum of Phase 1 Customer heat demand, whilst a separate energy centre containing back-up gas boilers will provide further capacity, ensuring resilience to the network. Once fully built out (phase 1 and 2) connections will have a combined annual heat demand of 34 GWh with adjacent private sector buildings having a combined annual heat demand of approximately 22 GWh. Part of the HNIP funding will support the costs of future proofing the network to accommodate for this potential future growth.
Cllr Michael, Cardiff Council’s Cabinet Member for Clean Streets, Recycling and Environment said:
“We’re very pleased to have been awarded an HNIP grant for this important low carbon infrastructure project. The scheme will allow us to capture heat already being produced from Cardiff’s residual waste and use it to deliver a low carbon heat source to large buildings in the Bay. Buildings that connect to the heat network will have the potential to reduce their carbon emission by around 80% compared to traditional gas heating and so this scheme forms an important part of our response to the Climate Emergency. The grant funding will help to kick start a scheme that can grow and evolve over the long term bringing low carbon energy security to the heart of the Capital city.”
Solihull Metropolitan Borough Council, Solihull Town Centre Low Carbon Energy Network
Award: £6,591,000 commercialisation and construction grant
The network will supply public and commercial buildings in Solihull Town Centre using a combination of a 1.7MWth air source heat pump, 1,560 kWe gas-fired Combined Heat and Power engine (prioritised for network heat supply) and auxiliary gas boilers. Electricity generated by the CHP will supply the Energy Centre and heat pump operations, 4 public and private sector customers via private wire supply and or grid export depending on electricity demand and grid electricity prices. Initially, the scheme will supply heat to a Council building and four education sites to the south, and then cross under the railway line to supply further public sector and commercial buildings to the east. The network accommodates expansion to new developments within the town centre masterplan. No domestic connections are envisaged in phase 1, although new developments in the town centre are likely to include residential apartments. Solihull Council has received support from the Heat Networks Delivery Unit (HNDU) prior to applying for HNIP funding. Heat on is expected in late 2022.
Cllr Andy Mackiewicz, Portfolio Holder for Climate Change, Planning & Housing, Solihull Council said:
“As a Council we have committed ourselves to taking the necessary local action to tackle the climate change emergency. Through our ambitious Net Zero Action Plan we are developing a strategic approach to the challenge of decarbonising the borough over the next twenty years.
“The funding announced today is fantastic news for Solihull as innovative schemes like this will have a significant role to play in helping us to achieve our goal of net zero carbon emissions by 2041.
“We know that decarbonising heating for schools, homes, offices and other business uses can be prohibitively expensive for building operators on an individual level. However, a central town centre energy network provides a unique opportunity for existing buildings and new developments to benefit from low carbon heat generation. This scheme will help us to reduce the borough’s greenhouse gas emissions while providing customers with a highly efficient and affordable heat supply.
“With this vital funding now in place we can move to the next phase of this exciting project and the real work can begin. While we still have a long way to go this feels like a significant step forward in our journey towards net zero emissions.”
Read more about the scheme here
Seaham Garden Village
Award: £3,800,000 grant for commercialisation and construction
The proposed Seaham Garden Village district heat network, if built out, is expected to supply low-carbon geothermal heat from former coal mines to a new development to the south of Seaham. It is hoped that the scheme will be a commercially viable sustainable energy demonstrator project that can be duplicated across the UK coalfields which contains ¼ of UK population and as such is of strategic importance. It is forecasted that up to 1,500 homes could connect to the network over time. This is a planned new build housing development and so construction has not yet commenced, it would be proposed that the heat network would be installed in tandem with the housing infrastructure including roads, roundabouts etc, to minimise costs and installation time.
Mine water is continuously pumped from the mine and treated to remove contaminants at the Dawdon Mine Water Treatment facility adjacent to the development. Dawdon is just one of 75 mine water treatment schemes across the UK that the Coal Authority operates. The mine water is heated by geothermal processes to circa 20°C providing low-cost low-carbon heat.
The new energy centre would comprise of a 1.022MW water source heat pump and later be expanded to include an additional water source heat pump of the same size. The energy centre would supply heat sourced from mine water to a new underground pre-insulated plastic heat network built out over 3 phases with a total trench length of 17.464km.
Cllr Kevin Shaw, Durham County Council’s Cabinet member for strategic housing and assets, said:
“The development of a proposed mine water district heating network to supply low carbon heat to new residents is an exciting project. It will offer a wide range of benefits, including residents accessing renewable and affordable warmth in their homes, and it will create new jobs and will help the council progress towards being carbon neutral by 2050. It is a fitting legacy to the mine workers who toiled in the coal seams that produced the coal that powered the Industrial Revolution that those same seams could now help power the Green Revolution in the future. This project is an excellent opportunity for County Durham and one that the council is excited to facilitate and enable.”
Read more about the scheme here
Award: £2,900,000 loan for construction
Newcastle University has secured funding to support the extension and upgrade of existing District Heat network on their city centre campus in Newcastle upon Tyne. The project will involve the development of new pipework from an existing energy centre to serve a new development on the campus and also supply heat to some existing properties. The University will replace the current gas boilers with a new liquid biofuel combined heat and power plant (CHP) which will deliver substantial carbon savings across the site.
Matt Dunlop, Head of Sustainability at Newcastle University said:
“It is fantastic to receive HNIP support for this major heat decarbonisation project on our Newcastle campus, and we look forward to delivering this and many more carbon reduction projects in pursuit of our Net-Zero Carbon target”.
Cambridgeshire County Council: Swaffham Prior
Award: £3,268,0000 grant for commercialisation and construction
In 2018, the Council had been approached by the Swaffham Prior Community Land Trust (a group comprised of residents motivated to provide affordable housing in the village) to collaborate on this community heat scheme. The funding will help the 300-strong village to transition from oil to low carbon heating and is thought to be the first project of its kind to actively collaborate with members of the local community to deliver a village wide scheme. Led by a community with a common goal for change, the scheme will provide a blueprint model which can be refined and replicated by other communities across the UK.
Sheryl French, Programme Director, Climate Change and Energy Investment said:
“This is a fantastic project and a first of its kind that we know of in the country. Retrofitting a whole village is a challenge but the Swaffham Prior Community Land Trust has been a great partner driving the project forward. Securing the funding is a huge step in creating accessible renewable heat for oil dependent homes in Cambridgeshire. Cambridgeshire County Council is committed to tackling climate change and I’m looking forward to seeing the continued success of this project.”
Kent County Council, Maidstone Heat Network
Award: £400,000 grant for commercialisation and £2,077,864 grant for construction
Kent County Council has a strong track record in delivering low carbon and zero carbon projects. The Maidstone district heating network presents one of the strategic energy infrastructure developments in the region which will support the council’s Net Zero aspirations. The council opted for a low carbon solution which utilises a water source heat pump combined with low carbon electrical power generation. The scheme has been developed as an enabler network for further expansion into the local area, and to increase its proportion of heat from low carbon sources. It is expected that the network will provide affordable, low carbon heat to 110 homes and 5 non-residential properties.
Susan Carey, Kent County Council’s Cabinet Member for Environment said:
“The Maidstone Heat Network is an important part of our work to deliver our Net Zero ambition for both Kent County Council and for Kent. It’s the result of several years of work by the Kent County Council Energy Team and this funding from [BEIS] is both a vote of confidence in the project and in the concept of heat networks.”
Manchester Octagon Project Energy Network (OPEN)
Award: £740,000 grant for commercialisation and £12,900,000 loan plus £1,000,000 grant for construction
The Octagon Project Energy Network (OPEN) is being undertaken by Manchester Energy Partnership Limited (MEPL), a joint venture between Sustainable Energy Supplies Limited Ltd, and Electricity North West (Construction and Maintenance) Ltd. The project also brings together key organisations in the region committed to reducing carbon emissions, creating employment opportunities and contributing to the overall wealth of the city. MEPL has been working with Manchester City Council and the Greater Manchester Combined Authority for over 7 years to create the network as part of plans to bring commercial vibrancy, growth and regeneration to the city’s strategic Southern Corridor. MEPL will initially construct close to 10Mw of electricity from Combined Heat and Power (CHP) generation, which will be combined with Photovoltaic Solar Panels and Air Source Heat Pumps throughout the network. The project also plans to be one of the UK’s first local energy centres to benefit from the inclusion of a 20% mix of Green Hydrogen with natural gas in 2024, further reducing carbon emissions long term.
Richard Everton, Chairman of the Manchester Energy Partnership said:
“I am delighted that the tenacity and single mindedness of the MEPL team has turned what was a personal “pipe-dream” into a financially viable and practical reality for the city of Manchester. The support received from both the local authority and central government is proof that multiple agencies can work together with the private sector to bring about infrastructure projects that will benefit communities, in pursuit of fuel efficiency and to reduce carbon emissions in our major cities. Manchester is taking a strategic lead in achieving “Net Zero North West.”
Award: £1,600,000 commercialisation grant and £10,509,000 construction loan
Cory’s existing Riverside energy from waste (EfW) facility will provide heat for up to 10,500 homes in Bexley in the first phase of the proposed heat network. A second EfW facility – adjacent to the existing one and part of Cory’s Riverside Energy Park which received planning permission from the Government in April 2020 – will supply an additional 10,500 homes. Serving a combined 21,000 homes, the heat network will be among the largest in the UK exemplifying the type of ambition needed as the UK transitions to net zero. Cory will work with Vattenfall to deliver the project; a collaboration that will also support Vattenfall’s wider vision to deliver low carbon heating to 75,000 homes across the Thames Estuary over the next decade. The wider heat network will draw on secondary heat sources, such as heat as a by-product of commercial or industrial activities, or heat from the environment.
Dougie Sutherland, CEO at Cory, said:
“We are delighted that BEIS is supporting the development of one of the UK’s largest heat networks. This is a very major step towards net zero, providing low-carbon heat for thousands of homes and businesses in Bexley and its surrounding Boroughs.”
Award: £12,000,000 grant and £11,859,000 loan funding for construction
Energetik will deliver two major extensions of its community heat network across the London Borough of Enfield to enable the supply of very low carbon heat to over 50,000 homes. This funding award follows an initial grant and loan to support the construction of the Meridian Heat Network in Funding Round 2 (see above). The extensions will link together and significantly decarbonise all existing heat networks in the London Borough by connecting them to the upcoming Meridian Water energy centre at Edmonton Eco Park, which will connect to the North London Waste Authority Recovery Facility once complete in 2026.
The northwards extension will link the Meridian Water Heat Network with the existing Ponders End Heat Network, serving two new housing developments comprised of over 3,300 homes and the civic centre building in Enfield Town. The westwards extension will follow the route towards the Arnos Grove Heat Network, heading north towards the Oakwood Heat Network and connecting two care homes along the way.
Jayne Clare, Managing Director at Energetik said:
“This funding decision is extremely positive for Enfield and our Company. The expansion of our low carbon heat networks will provide the required infrastructure to unlock untapped potential and deliver maximum carbon savings across the borough. This an immense step forward towards achieving Enfield’s carbon goals.”