Hull’s District Heat Network has this week taken an important step forward as the council looks to achieve it’s long term net zero goals.
At Hull City Council’s cabinet meeting held on May 19, members approved Phase 1 of the Hull District Heat Network (HDHN) and plans to award a framework contract worth up to £125 million to Vital Energi Utilities Limited. The £125 million represents the maximum value of all the phases of the plan.
District Heat Networks provide cities with heat generated by utilising waste energy and are already used in various places in the UK including London, Glasgow, and Manchester.
The HDHN is seen as being a key element of the council’s commitment to become carbon neutral by 2030 and achieve net zero by 2045. A council report states that Phase 1 alone will save 110,000 tonnes of carbon dioxide equivalent from entering the city’s air over 40 years.
Phase 1 of the HDHN, which is expected to cost around £43 million, is to be funded by £12.5 million from the Green Heat Network Fund and £1.5 million from the Levelling Up Grant, with remaining £29 million met through connection charges and a loan of up to £27 million from the National Wealth Fund.
Phase 1 will include the construction of the Hull Energy Centre that was recently granted planning permission by the council’s planning committee. The building, which is to be built on the car park next to Napoleon’s Casino & Restaurant off the A165, will provide hot water heated using low-carbon methods and will become a key part of the District Heat Network. The cost of Phase 1 also includes fitting network pipes, building connections, surveys, professional fees, and risk and contingency.
At the cabinet meeting members heard that the risk to the council is mitigated by contract arrangements that mean any overspends would be taken by Vital Energi Utilities Limited. During the meeting, the council leader, Cllr Mike Ross expressed his delight at the HDHN making progress, he said “it’s been quite a process to get this to the council table.”
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