The Government’s Heat Networks Investment Project (HNIP) will develop heat networks that use energy from waste (EfW) in London and East Devon using over £250 million in funding.
Over £250 million of funding has been awarded to heat network schemes under the HNIP since it began accepting applicants in 2018. The total Capex of schemes offered HNIP funding exceeds £826 million, which the HNIP says highlights the scale of the opportunity for investment in the sector.
Veolia was awarded £16 million while Cranbrook was awarded £10.7 million in funding.
Over the past three years, we have seen some incredible projects come forward for funding.
Veolia will establish an EfW-sourced, low-carbon, heat network to a new area of Southwark, supplying heating and hot water to several existing estates and schools that currently depend on gas boilers. The project is also intended to support the future growth of a new regeneration area aimed at accommodating 20,000 new homes over the next 15 years.
Cranbrook is a new town in East Devon located near the city of Exeter. Development began in 2011 and today around 2,800 homes have been built. The new town has been awarded over £10 million in funding.
Cranbrook is near employment developments including the low carbon Skypark business park with a single heat network serving both developments. Over the next 20 years, the HNIP says Skypark is predicted to create up to 6,500 new jobs with a significant positive impact on the local economy.
Triple Point Heat Networks Investment Management, Ken Hunnisett, said: “Benefitting from a combined award of loan and grant funding exceeding £26m, the scale and ambition of the two projects reflect the growth in the UK’s heat network market while also being exemplars of how green infrastructure can be a driver of tangible local economic growth…
“The HNIP has now closed for applications, but we’ll continue to showcase its many success stories. Over the past three years, we have seen some incredible projects come forward for funding. We look forward to seeing them develop and expand further.