£34m awarded brings total GHNF investment to over £380m, boosting low carbon heat networks across England.

The Green Heat Network Fund (GHNF) continues to drive transformative change, awarding over £34 million to four low carbon heat network projects across England, bringing the total funding awarded to date to more than £380 million.

Building on 2024’s landmark investment of over £220 million in low carbon heat network projects nationwide, today’s announcement showcases the diversity of the fund’s impact. Four innovative projects in Leeds, London, Maidstone, and Cranbrook are set to enhance local energy use, further enhancing the UK’s transition to sustainable heating.

In Leeds, SSE Energy Solutions have secured funding for the Aire Valley Heat and Power Network. Businesses operating across a range of sectors will benefit from a bold new plan to decarbonise their heating and electricity supply. As a privately developed network, Aire Valley complements the local authority’s existing heat infrastructure, demonstrating the vital role that both the public and private sectors play in advancing the industry.

In Maidstone, Allington Energy Networks Ltd have received funding to develop a new heat network which will harness waste heat from a local energy recovery facility. Meanwhile, in Central London, the University of London is poised to decarbonise the southern half of its Bloomsbury university campus. This will deliver significant environmental benefits to a campus that supports more than 50,000 students across institutions including University College London (UCL) and SOAS.

East Devon District Council, a beneficiary under the Heat Networks Investment Project (HNIP), is also now utilising the GHNF to expand their flagship Cranbrook heat network which sources heat via Energy from Waste.

Minister for Energy Consumers, Miatta Fahnbulleh said:

“We know that heat networks will play a hugely important role in providing low-carbon heating to millions of businesses and building owners, driving down energy bills.

“The Green Heat Network Fund is central to that, helping green innovative projects like these four fantastic schemes use waste heat and heat pumps to provide low-emission heating and hot water. 

“These projects not only push us on in our journey to reach net zero but also support our mission to secure Britain’s energy independence.” 

Ken Hunnisett, Programme Director, added:

“We’ve started 2025 with the same incredible momentum that we finished last year with. The projects supported in today’s announcement highlight the hard work, ingenuity and collaboration powering the transition to a greener future for our built environment and the people that live and work among it. As well as homes and businesses, we’re particularly excited to play a role in decarbonising some of the world’s best and most prestigious university buildings.”

Aire Valley Heat and Power Network (£19.5 million commercialisation and construction funding)

The Aire Valley Heat and Power Network is an innovative low carbon heating and electricity scheme in Leeds, led and majority funded by SSE Energy Solutions. The scheme has been awarded £19.5 million from the GHNF and will deliver heating to a large industrial & commercial area of the city.

SSE’s district energy scheme will harness waste heat from the Skelton Grange Energy Recovery Facility (ERF) which is currently under construction. The site will also double-up to provide electricity to the Aire Valley, located just south of Leeds City Centre.

For businesses in the area, the low carbon energy network will offer a reliable, sustainable heating supply, while helping them to meet their ESG/CSR* business goals. The network is expandable, creating opportunities for future growth and integration with the GHNF and HNIP supported LeedsPIPES heat network on a city-wide scale.  

Nathan Sanders, Managing Director for Distributed Energy, SSE said:

"The Green Heat Network Fund allocated to Aire Valley will continue to help make our ambitions to develop a low-carbon network in West Yorkshire and Leeds a reality. This will explore ways of unlocking new and plentiful heat sources, helping West Yorkshire meet its ambitions of a net zero carbon region by 2038 and reduce energy bills for businesses and communities in Aire Valley”.

Bloomsbury Energy Network (£7.2 million commercialisation and construction funding)

The existing Bloomsbury Heat and Power Decentralised Energy Scheme serves the southern half of the Bloomsbury university district in central London, more than 50,000 students. The network serves multiple University of London institutions across the campus, including University College London (UCL) and SOAS.

The University of London will receive £7.2 million worth of GHNF funding to upgrade the 80-year-old infrastructure, replacing the existing gas- and oil-fired systems with low carbon air source heat pumps.

The upgrade will help to decarbonise the Bloomsbury Estate, consisting of UCL, SOAS, and the University of London, which was founded in 1836. Work to replace the existing technology with a low carbon heat source begins in 2024 and is set to be complete by 2029.

Rita Akushie, Pro Vice-Chancellor Finance and Operations, said:

“Decarbonisation is essential if we are to tackle the climate emergency, so I am delighted that the University of London is a partner in the combined Heating and Power Network scheme.

Introducing the new system involves the replacement of vast network of historic and underground infrastructure, and on completion will mean the Bloomsbury Estate is decarbonised by 99 per cent, making the new system greener, cleaner and more efficient for all.”

Maidstone District Heat Network (£782,500 commercialisation funding)

Maidstone, the largest town in Kent, is set to benefit from £782,500 from the GHNF to support the development of a heat network that will harness waste heat produced by an existing Energy-from-Waste (EfW) facility owned by Green Recovery Projects Limited (GRP)**.

The Allington Integrated Waste Management Facility is designed to recover energy from non-recyclable waste collected by Kent County Council. GRP aim to utilise heat energy generated from the site to heat over 80,000m² of public sector buildings, as well as other commercial and residential properties.  

Once the commercialisation phase is complete, GRP hope to move into the construction phase with partners GREN Energy Limited, with the aim to decarbonise other public sector and commercial buildings in the Maidstone area.

Juergen Schaper FCC Environment Operations Director (Energy Division) said:

“With Net Zero ever on the agenda and a pressing need to invest in UK based renewable power sources as we seek to move to a lower carbon future economy, utilising the heat from this plant is vital. This project demonstrates that real progress is being made towards delivering low-cost, low-carbon heating to homes and businesses in Maidstone and we are proud to be a part of this major step forward.”

Cranbrook Heat Network Expansion (£6.95 million commercialisation and construction funding)

East Devon District Council will receive £6.95 million from the GHNF to help them expand the Cranbrook heat network.

The heat network was previously awarded funding under the Heat Networks Investment Project (HNIP) to develop a heat transmission main to utilise heat from an Energy-from-Waste plant. New funding to the Cranbrook scheme will expand the heat network to further developments across the town.

GHNF will help to support an expansion of the network to an additional 4,500 new homes and 24,500m² of commercial and community space. The extension project will play a key role in decarbonising the two existing district heating networks that serve the Exeter and East Devon Enterprise Zone area.

In addition to supporting a number of apprentices, the project will also support 30 new local jobs and a further 11 jobs across the UK.

Councillor Paul Arnott, Leader of East Devon District Council and Chair of Exeter and East Devon Enterprise Zone, said:

"The Cranbrook Heat Network Expansion marks a major milestone in East Devon’s transition to a sustainable, low-carbon future. Backed by funding from the Government’s Green Heat Network Fund, this project will deliver clean, efficient energy to 4,500 new homes and a range of commercial and community facilities. It represents a vital step in continuing the roll out of district heating and in reducing carbon emissions throughout the town.  This expansion demonstrates how we can support the transition to zero carbon development and meet our sustainable development objectives, offering a powerful example for communities across the UK.”