A heat network in Westminster will become one of the UK’s first heat network zones – places where heat networks are the best way to decarbonise compared to each building having its own air source heat pump.
The heat network will supply low carbon heating, sourced from within the local area, with waste heat being used from the London Underground, the Thames, and the sewer network.
Heat will then be distributed via a network of underground, insulated pipes filled with hot water. The zone will stretch from around Victoria Station, up to Temple Underground Station near the Strand, bounded by St James’ Park.
The Department for Energy Security and Net Zero (DESNZ) and Westminster City Council created the South Westminster Area Network (SWAN), bringing in the SWAN Partnership, a joint venture between Hemiko and Vital Energi. London Heritage Quarter and AECOM have also been key partners, supporting the network’s growth.
The SWAN Partnership will be funding, building and operating the heat network, with a plan to invest £100m within 3 years, £500m within 10 years, and £1bn by 2050 into what will become one of the UK’s biggest heat networks.
It is not yet known who will join up to this heat network, but Project SWAN could serve landmark buildings like the Houses of Parliament and the National Gallery, alongside buildings owned by Westminster City Council and the Government.
Miatta Fahnbulleh, Minister for Energy Consumers at DESNZ, said:
Taking waste heat from the River Thames and London Underground to heat such iconic places as the Houses of Parliament and the National Gallery is a really exciting example of what lies ahead on our journey to low-cost, low-carbon heating. This project will help support hundreds of jobs and make bold new strides towards boosting our energy security, as one of seven heat network zones we’re backing with over £5m funding.
Toby Heysham, CEO of Hemiko, said:
Using heat from the iconic River Thames and London Underground to heat some of the capital’s most famous buildings is a true story of pro-growth, circular economy in London. Heat networks are the next big utility in the UK, and we are investing £1bn over the next 6 years into networks that will allow local people and businesses to make use of locally wasted heat. We strive to embed ourselves in the local community, understanding the pressures and opportunities in the area, and figuring out how we can help, such as bringing high-quality green jobs and supply chain opportunities. This network will be the flagship network in the UK, the first new zonal scale network in a market that offers an investment potential the size of the UK offshore wind industry. Steps like this show that the UK heat networks market is open for business.
Nick Gosling, Chief Strategy Officer of Vital Energi, said:
Heat networks are the most cost-effective way to decarbonise our densely populated cities. The government’s heat network zoning regulations, introduced last year as part of the Energy Act, have now created the right market conditions for private sector investment. By combining Hemiko’s investment capabilities with Vital Energi’s comprehensive expertise in designing, building, operating and owning energy infrastructure, the SWAN Partnership will deliver the first zonal scale heat network and demonstrate a model that other towns and cities will seek to replicate.
Businesses are being encouraged to register their interest in joining the network, by emailing [email protected]. First movers are needed to unlock this least cost decarbonisation pathway and the jobs that come with it, for the benefit of everyone in Westminster. The more who join up, the cheaper it is for everyone.
Construction of SWAN is due to start in 2026.
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