Heat projects receive £80m funding boost

A project which will see almost 2,000 homes and businesses heated by waste from sewage is one of four granted a share of more than £80 million by government.

The Department for Energy Security and Net Zero (DESNZ) said the Green Heat Network Fund will award an £11 million grant to the project in Bolton which will enable energy to be extracted from both sewage and waste hot water from washing machines, bathrooms and kitchens to fuel a new heat pump, as part of the Greater Manchester town’s first district heating network.

Elsewhere in the UK three other projects have also received grants from the fund.

More than £42 million has been awarded to the Exeter Energy Network to build a heat network using air source heat pumps and the UK’s largest high-temperature water source heat pump. Buildings connected to the network will see an initial reduction of 65-75% in carbon emissions compared to gas heating.

Meanwhile:

• the Hull East District Heat Network has been awarded £22 million to build a heat network using excess heat generated by a nearby chemicals park. The project will provide low carbon heating to 14 public sector council buildings and industrial businesses
• the Greenwich Peninsula ESCO District Heating Network in London will receive £4.6 million to connect more than 9,000 existing and new homes, as well as over 94,000 square metres of commercial space, to low-carbon heating. This cleaner energy will be powered by an air source heat pump on the roof of the Greenwich Peninsula Energy Centre

It comes as more than £8 million from the government’s Heat Network Efficiency Scheme has been announced to support upgrades to 34 heat network projects across England and Wales.

Projects include:

• Newport City Homes Housing Association Limited, which has been awarded £3.7 million to upgrade the Duffryn District Heating System;
• Bristol Heat Networks Limited, which will receive £746,582 for the Redcliffe Heat Network, helping more than 700 residents;
• the University of Plymouth, which has been awarded £243,280 to upgrade to a sustainable heating system in the Portland Square area of its campus

Commenting on the announcement Lord Callanan, minister for energy efficiency and green finance, said: “These innovative projects will help drive down energy costs while also demonstrating why the UK has led the way in cutting carbon emissions.

“They show how energy sources can be found in the most unexpected places – as more homes and businesses will benefit from cleaner heating and lower energy bills.

“Our upgrades will also make sure our existing heat networks are upgraded – so customers can get the reliable heating supply they deserve.”

Stephen Knight, managing director at Heat Trust, the national consumer protection scheme for heat network customers, said: “At Heat Trust we sadly hear of far too many examples of inefficient and poorly performing heat networks. These can result in much higher heating costs for residents, overheating corridors and frequent breakdowns.

“The steep rises in gas prices over the last few years has meant that inefficient heat networks can be very expensive for residents.

“The government’s Heat Network Efficiency Scheme is therefore an important step in the right direction, and we welcome today’s announcement of funding. I would urge all those responsible for running existing heat networks to consider bidding for this funding in future rounds.”

Sarah Honan, head of policy at the Association for Decentralised Energy, said: “Today’s announcement takes us an important step closer to heat networks’ ultimate role in decarbonising the bulk of heat across the UK’s cities, towns and buildings. As we embark on the journey towards regulation, heat network zoning and the expansion of existing schemes, the ADE is very glad to see government supporting sector growth and high industry standards.

“Heat networks are a key solution in the mix of technologies that will make up the energy system of the future – not only will they be essential in decarbonising our homes and offices, factories and shops, but without them, the UK will not be able to build the truly resilient and flexible grid needed for the future.”