Oxford Lands Major Funding for Low-Carbon Heat Network

Image Credit: 1Energy

Oxford is taking a significant leap toward a greener future with the launch of a low-carbon heat network that’s set to reshape how the city heats its public buildings. Thanks to support from the Green Heat Network Fund, the project has just secured nearly £22 million in funding. The money will be used to build a system powered by 20 megawatts of water-source heat pumps designed to deliver cleaner, more sustainable heating throughout the city.

At the heart of this effort is 1Energy, the company leading the charge. They are working closely with a powerful coalition of local institutions. The University of Oxford, Oxford Brookes University, Oxford City Council, Oxfordshire County Council, and the Zero Carbon Oxfordshire Partnership are collaborating to shape and drive the project forward. It’s a rare level of collaboration and one that signals just how important this initiative is for the region.

If all goes to plan, construction is expected to begin in 2026. But before any ground is broken, 1Energy is prioritising meaningful conversations with the local community and ensuring the necessary planning permissions are in place. That community-first approach is already building trust and momentum.

When fully operational, the heat network is projected to reduce around 15,000 tonnes of carbon emissions annually. That’s no small feat. It brings Oxford closer to achieving its net-zero targets while also contributing to cleaner air and a healthier urban environment. The benefits are wide-reaching, particularly for students, workers, and residents who spend their days in some of the city’s most iconic public buildings.

Ken Hunnisett, Programme Director, said: “Momentum is building as private and public sector stakeholders combine to create a truly thriving heat network market. 1Energy’s transformative project in Oxford is a brilliant example of what this kind of collaboration can achieve — delivering significant volumes of heat, improving air quality, and connecting communities while decarbonising some of the UK’s leading institutions and a University of world renown". 

The heat network is also expected to reduce harmful air pollutants, often linked to respiratory problems, by around 5 per cent before 2030. But 1Energy is aiming for more than just environmental targets. To ensure the project delivers real value to the community, a community benefit task group has been established. This group brings together some of Oxford’s leading institutions to explore how the project can support local initiatives, help tackle fuel poverty, and create new employment opportunities for residents. It is not just about clean energy. It is about creating a healthier, fairer future for everyone involved.

Andrew Wettern, CEO of 1Energy, said: “Oxford has more than 1500 listed buildings across the city, so the decarbonisation challenge for Oxford is much harder than many other cities. The Oxford Energy Network matches perfectly to the challenge because it will be invisible and silent, it will supply the temperatures required by these historic buildings to maintain their warmth in the winter, and it will be easier and cheaper for customers to connect to the network than to create their own low-carbon heat onsite.”

“By using the Oxford Energy Network as a model for other historical cities and towns, we can deliver heat decarbonisation in a way that preserves our heritage across many more cities and towns at pace.”