UK news update July 2025

New heat network secures £100 million • Data center to heat London University campus • Enfield connects schools to heat network • Read more about the developments in sustainable heating and cooling in this month's news update from the UK

 

£100 million private investment to develop Derby’s first city-wide heat network

Derby has taken a major step on its journey towards decarbonized heating, as 1Energy confirmed a £100 million private investment to develop a new city-wide heat network. The pledge is backed by £23 million in government funding and is expected to cut carbon emissions, improve air quality, and generate hundreds of skilled jobs across the region.

The majority of the heat will be sourced through large-scale water-source heat pumps, capturing surplus energy from local businesses, and will reduce city-wide gas demand by around 7%. As the project expands, 1Energy estimates that total investment could exceed £140 million, with ambitions to roll out similar networks nationwide in the coming years.

Major institutions are already backing the initiative. Derby City Council, the University of Derby, Derby College, and local NHS hospitals have all committed to connect to the new system. Private companies such as Rolls-Royce and SmartParc are also expected to join, demonstrating broad support from both public and private sectors.

The network is forecast to reduce annual carbon emissions by over 19.000 tonnes and air pollutants by 86%, equivalent to taking 16,000 cars off the road. Construction is set to begin in 2026, with the project bringing opportunities for apprenticeships and wider supply chain growth.

Read more in article from Insider Media

Data centre to heat London university campus

Queen Mary University of London (QMUL) has annouced a major upgrade to its data centre that not only boosts computing power for global research but also helps decarbonise the campus by feeding waste heat into its heat network. The project is located in the Priestley Building and is a combined initiative by Schneider Electric and Advanced Power Technology (APT).

As part of the GridPP network supporting the CERN Large Hadron Collider, it provides round-the-clock computing power for particle physics research. It also hosts resources for astronomy, nuclear physics, and other large-scale research collaborations. But until recently, the facility struggled with ageing infrastructure and rising demand, projected to quadruple within the next decade.

A recent upgrade to the data centre has almost doubled compute capacity from 200kW to 390kW, and by capturing and reusing waste heat from its water-cooling systems through heat pumps, the facility now provides clean heating across the campus. Once fully operational, the system could annually save £240.000 in gas costs and cut 700 tonnes of carbon emissions.

Read more in article from Power Engineering

UK Government awards £7 million to increase heat network efficiency 

A total of £7 million of UK Government funding has been awarded to 49 district and communal heat networks across England and Wales to improve efficiency of systems supplying over 11.300 residents as well as hospitals, universities, charities, and community buildings.

The funding forms part of the Heat Network Efficiency Scheme (HNES), which is now in its third year of helping low-income households and public sector buildings upgrade ageing infrastructure and cut carbon emissions. Round 8 will deliver both capital and revenue grants, with ten projects receiving a share of £6.1 million for physical improvements such as insulation upgrades, plant room modernisation, new heat interface units (HIUs), and better metering and monitoring equipment. These works are expected to reduce annual carbon emissions by 48.500 tonnes.

A further £796.000 has been awarded for 39 optimisation studies, which will review performance and identify the most cost-effective upgrades for networks serving more than 9.400 residents. This combination of immediate investment and longer-term planning ensures both short-term improvements and a clear pathway to greater efficiency across the sector.

The continuation of HNES, delivered by Gemserv on behalf of the government, signals the growing role of district and communal heat networks in the UK’s journey to net zero. Alongside the expansion of new low-carbon systems, improving performance of existing networks is critical to building consumer confidence and lowering bills.

Read more in article from ACR Journal

 

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