The first projects to receive gap funding for heat network schemes have been announced today by the Department for Business Energy and Industrial Strategy (BEIS) in partnership with Triple Point Heat Networks Investment Management. With over £30 million awarded to five local authority projects and a further £10 million awarded to two exciting private sector projects in South East London and Liverpool.

Marking another step forward in the government’s Clean Growth Strategy, the money will come from the £320m Heat Networks Investment Project (HNIP) fund. These projects are the first beneficiaries to be formally announced by the scheme which is open to public and private sector organisations in England and Wales.

The Heat Networks Investment Project (HNIP) has offered funding to:

Barking Town Centre Strategic Distribution Energy Scheme (Funding Award: £5m)

 To create a low carbon district heating scheme in Barking Town Centre, serving a mixture of new developments comprising more than 8,000 homes as well as a number of existing buildings.

Bristol City Council: Old Market Heat Network (Funding Award: £6.59m)

To support the installation of a key phase of the city centre-wide provision of low carbon heat. The Network will supply 17 buildings including 10 office blocks, 4 residential blocks, two hotels and one school.

Bristol Redcliffe Heat Network (Funding Award: £3.6m)

To expand the existing network and the installation of a second low carbon energy centre, supplying heat to a number of new commercial developments.

Leeds City Council (Funding Award: £2.4m)

To extend a recently completed heat network into the city centre.  The extension will deliver low carbon heat from the Recycling and Energy Recovery Facility (RERF) to five council buildings and has been oversized to allow existing buildings and developments to connect in the future.

Energetik: Meridian Water Heat Network (Funding Award: £14.76m)

To supply low carbon waste heat to 10,000 homes and eventually connect to three other housing developments in the Borough to supply over 15,000 homes. The network has capacity to expand and the company hopes to connect to supply heat to neighbouring London boroughs.

Veolia: South East London Combined Heat and Power Heat Network (Funding Award: £5.5m)

To create a new pipework branch from South East London Combined Heat and Power (SELCHP) – a major energy from waste plant – to transport waste heat to 3,500 new homes.

Peel Energy, part of Peel L&P: Liverpool Waters Heating Network (Funding Award: £1.3m)

To support the supply of heat to multiple residential and commercial buildings with a temporary energy centre and an accelerated transition to a low carbon heat source.

Ken Hunnisett, Project Director at Triple Point Heat Networks Investment Management said: We are delighted to offer funding to these highly deliverable projects, each of which scored well in the opening funding rounds in terms of the key scheme metrics of heat delivered and carbon saved.

Of course, this is only the beginning of the story. We know that there is a substantial pipeline of projects out there and as such this announcement today will be the first of many. We hope it helps to build confidence in the market and that it encourages others to come forward and take advantage of this unique opportunity. People need to engage with some urgency as HNIP is a time-limited scheme that closes in March 2022. Heat networks offer a unique opportunity to utilise a range of heat sources to deliver low carbon heating and cooling to multiple properties. We look forward to working with future applicants to support them throughout their application journey.”

More about the Bristol projects

Bristol Redcliffe Heat Network (Award: £3.60m 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.

Bristol Old Market Heat Network (Award: £6.59m 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.