Government Unleashes Over £100 Million Boost for Clean Heat in Largest GHNF Funding Round

Image Credit: GHNF

Eight pioneering low-carbon heat networks in London, Bristol, the West Midlands, Lincolnshire, and the North West have secured substantial investment and are poised to accelerate construction and propel commercialisation.

This ambitious funding is provided via the Government's Green Heat Network Fund (GHNF), a catalyst reshaping the heat network landscape. More than simply allocating money, GHNF aims to establish a sustainable, vibrant market for low-carbon heat solutions, creating job opportunities and fostering innovation. The latest announcement follows closely behind Triple Point Heat Network Investment Management's confirmation as the fund's managing body until 2030, extending their government partnership to 12 transformative years.

Minister for Energy Consumers Miatta Fahnbulleh said, “Heat networks will play an important role in our mission for clean power by 2030, helping us achieve energy independence and lower bills.

“That is why this government is backing inventive projects, such as using heat generated by sewers or the River Thames to provide heating to connected businesses and homes, through the Green Heat Network Fund.”

Ken Hunnisett, Programme Director, said, “£100 million in funding is a huge milestone: a great reflection on the GHNF, the teams that will be developing and delivering them, and on the stakeholders that they’ll serve. From hospitals and homes to entire town and city centres, we’re proud to be accelerating the shift to cleaner, greener heating for communities across the country.”

Awardees receiving GHNF funding include:

Vattenfall – Bristol City Centre Heat Network

 Vattenfall’s Bristol City Centre initiative receives a significant £21.3 million, knitting together Frome Gateway, Canons Marsh, and St Nick's heat networks. Beginning construction later this year, the project will see new energy centres equipped with air-source heat pumps. Stretching from Cabot Circus to Millennium Square, this infrastructure will ultimately integrate into a single expansive heat network serving Bristol. Using renewable energy technology and storage solutions, the initiative is vital in reducing Bristol’s reliance on fossil fuels, directly contributing to the city's ambitious carbon-neutral goals under the Bristol City Leap programme.

1Energy – Derby Energy Network

 A substantial £23.2 million injection propels Derby's network, designed to harness wastewater heat recovery technology. A powerful 12mw water-source heat pump system will capture waste heat from industries near Spondon, distributing it to potentially 47 buildings, including the University of Derby, Derby College, local council properties, and healthcare facilities. This substantial infrastructure project will generate over 100 new jobs.

Hemiko – Lincoln Heat Network

 Hemiko has secured £15.5 million to spearhead an innovative heat network in Lincoln. Centred initially on capturing waste heat from a newly built data centre, this ambitious project promises considerable expansion in future phases. The GHNF funding unlocks an additional £62 million of private investment for phase one, with total investments projected to reach a remarkable £420 million by 2050. Starting construction in Spring 2026, Hemiko plans to create 40 new local jobs, supported by a detailed Social Value Plan involving community collaboration, curriculum support, and targeted grants.

SWAN Partnership – South Westminster Area Network (SWAN)

 With £21 million in GHNF funding, the SWAN Partnership will build a transformative heat network in London's South Westminster. SWAN will distribute clean energy to iconic landmarks and communities throughout Victoria, Whitehall, and the Strand by drawing renewable heat directly from the River Thames. This flagship project anticipates stimulating over £1 billion of further investment by 2050, alongside annual carbon savings equivalent to removing 40,000 vehicles from roads. Additionally, SWAN will support 500 jobs and enhance air quality and local business opportunities.

Sandwell Metropolitan Borough Council – West Bromwich Heat Network

 Sandwell Council has been awarded nearly £5 million to create a town-wide heat network in West Bromwich powered by waste heat from the Enfinium Kelvin Energy-from-Waste facility. Potential recipients include hospitals, residential blocks, educational institutions, leisure centres, and commercial properties, underpinning local economic regeneration. Employment and apprenticeship opportunities will also be fostered through this initiative.

Trafford Metropolitan Borough Council – Trafford Civic Quarter Heat Network

 With £5.7 million in funding, Trafford's new network leverages heat pumps extracting waste heat from sewerage infrastructure. The project will significantly enhance Trafford's environmental footprint while creating valuable jobs and apprenticeships by supplying heat to diverse buildings such as homes, schools, colleges, hotels, retail premises, and local emergency services.

Severn Wye Energy Agency – Mersey Biochar Heat Network

 Awarded £1.7 million, this project at Warrington’s Lingley Mere Business Park uniquely taps excess heat from Severn Wye's biochar pyrolysis plant, an innovative carbon-negative facility. Scheduled for completion in April 2027, the scheme initially serves four buildings, using a pioneering biochar process to lock carbon from biomass and repurpose excess heat. Local and regional employment opportunities will accompany the project’s deployment.

Bring Energy – East London Energy Network Extension

 Bring Energy secured almost £9 million to expand its heat network in East London's Queen Elizabeth Olympic Park area. Using dual heat pump systems—one recovering waste heat from King's Yard energy centre and a powerful 6mw pump extracting thermal energy from the River Lea—the network will sustainably supply low-carbon heating to over 3,000 additional residents.

This strategic expansion continues to drive decarbonisation, reduce reliance on traditional energy sources, and create a resilient and future-proof heating solution.

Collectively, these projects signal a robust shift towards sustainable heating infrastructure across England, showcasing innovation, collaboration, and commitment to the nation’s decarbonisation targets.