‘Clean’ city centre heating network gets £27m loan
GREEN FUTURE: Hull city centre
By Simon Bristow, Co-Editor
Work will begin soon on a low-carbon district heating network for Hull city centre after the project was given a £27m loan from the Government’s National Wealth Fund (NWF).
The city council’s Hull District Heat Network (HDHN), a cheaper alternative to other decarbonised heat solutions such as individual air source heat pumps, will provide low-carbon, reliable heat to buildings across the city centre.
Phase one will service council properties, educational establishments, development sites and residential properties. It will also provide a return for the council over the lifetime of the project by providing affordable, clean energy to buildings, which will allow money to be allocated to other services.
In addition to the loan, announced today, the total £43.5m cost of the project is being financed by a £15m grant from the Green Heat Network Fund, via Triple Point, and £1.5m of Levelling Up Partnership funding.
The loan will be repaid through the operation of the network. It is being billed as a major step forward in the city’s ambitions to become carbon-neutral by 2030 and net zero by 2045.
The Hull project is the second local authority heat network in the country to be backed by the NWF after Solihull in the Midlands, and directly supports Government ambitions to decarbonise the UK’s building stock – currently the second largest contributor to carbon emissions after transport.
The council also benefited from the NWF Local Authority team’s advisory service which supported the development of a strong financial plan for the project.
The network will generate heat using heat pumps from an energy centre in Hull city centre, for which planning permission has been secured and construction work will “soon begin”.
A series of underground pipes will supply the clean, renewable heat which will improve air quality, provide opportunities for new green energy jobs and create an environmentally friendly city.
The project is expected to cut 110,000 tonnes of carbon dioxide from entering the city’s air over 40 years, providing a significant contribution to Hull’s net zero targets.
Chancellor Rachel Reeves said: “We are investing in Britain’s renewal, and this National Wealth Fund loan will heat buildings across Hull with clean energy, open up new jobs in green energy, and strengthen the city’s energy security.”
Hull West and Haltemprice MP Emma Hardy said: “This is exactly the kind of practical action on the cost of living that Hull residents need, and it’s only possible because the Labour government created the National Wealth Fund.
“By backing Hull’s district heat network, we’re delivering a cheaper, cleaner alternative to other decarbonised heat solutions, saving money for council buildings, schools, homes, and businesses across our city.
“It’s a win for everyone: it puts money back into local services, creates more green jobs, improves air quality and helps Hull lead the way in the green transition. This is a brilliant example of how Labour is using the National Wealth Fund to invest in Britain’s renewal, supporting local authorities, creating jobs, and delivering real benefits to our community.”