More than £78 million in government funding has been awarded to five heat network projects across London, Yorkshire and the West Midlands, supporting efforts to reduce reliance on fossil fuels for heating.
The largest award, worth £41.63 million, will support the London Strategic Heat Main (LSHM), which is a planned 25km-plus network designed to transport low carbon heat from the Thames Estuary into central London.
This project is expected to eventually supply heat through local networks serving the equivalent of up to 650,000 homes, or more than one million people across seven London boroughs.
The first phase will use electric thermal barges to transport heated water along the Thames while the main infrastructure is being constructed. The heat will be transferred into large insulated hot water tanks on new pontoons, with deliveries to central London expected from 2028.
Once operational, the LSHM is expected to cut heating emissions by around 95% and eliminate nitrogen oxide emissions from fossil fuel boilers at source. However, connected heat networks may retain gas boilers for backup.
Martin McCluskey, Minister for Local Energy and Jobs, said: “Clean power and clean heat benefits communities across our country. Building the infrastructure to deliver it is reindustrialising the UK and rolling out cutting-edge energy technology so families can benefit from lower bills, good jobs and energy security.”
The project will initially use heat from an energy-from-waste facility in Belvedere, with plans to incorporate additional heat sources over time. The scheme is also expected to unlock more than £5 billion in investment and support jobs across the supply chain.
A further £11.5 million has been awarded to the Riverside Heat Network in Bexley and Greenwich. The project will initially supply low carbon heat to around 20,000 homes, including social housing, using heat from the same energy-from-waste facility.
Other projects receiving funding include the £11.4 million Marble Arch Energy Network in Westminster, which will use water-source heat pumps to draw energy from the London Chalk Aquifer.
The network will initially provide heating and cooling to at least 34 buildings, with annual output expected to reach 39GWh of heat and 25GWh of cooling. Carbon emissions from connected buildings could be reduced by up to 98%.
In Bradford, £9.7 million awarded to 1Energy will extend an existing heat network to 25 additional connections, including a hospital, schools, college buildings and residential properties. The extension is expected to provide an additional 16GWh of low carbon heat.
John Hartley, CEO of 1Energy, said: “Crucially, by delivering heat at city scale, we can offer customers a more cost-effective route to decarbonisation while strengthening Bradford’s long-term energy resilience.”
A further £3.98 million will support an expansion of the Solihull Energy Network, extending low carbon heating to more public buildings, schools, businesses and a mixed-use development.
The existing heat network will receive its supply from an energy centre in Tudor Grange Park housing a Combined Heat and Power (CHP) system and air source heat pumps.
Construction of the network is expected to begin in the summer of 2027. It has already supported over 100 apprentice weeks and is designed to boost local jobs.
Cllr Andy Mackiewicz, Solihull Council’s Cabinet Member for Climate Change and Planning, said: “The Solihull town centre energy network is one of the most ambitious low carbon infrastructure projects being delivered in the region and this additional investment will allow us to extend its benefits to even more organisations and developments across the town centre.”
The funding comes through the Green Heat Network Fund, which aims to accelerate the development of low carbon heat networks and make use of local sources of surplus or renewable heat.
Copyright © 2026 Energy Live News LtdELN