The network will provide low-carbon energy to the city
Hull City Council’s £125m low-carbon heat network has received backing from the UK’s National Wealth Fund. The network, which will provide the city with heat generated by making use of waste energy, has now received a £27m loan.
Work on the network began last month with much of Alfred Gelder Street being dug up in preparation of hot water pipes being laid. The work has been scheduled to coincide with the ongoing repairs to Drypool Bridge.
The National Wealth Fund (NWF) is a government owned investment body that was set up in October 2024. It’s aim to support the transition to net zero through investing in clean energy initiatives.
The NWF has now announced a £27m loan for the HDHN which will be repaid through the operation of the network, representing a major investment into Hull’s future. The network is also funded through a £15m grant from the Green Heat Network Fund, via Triple Point and £1.5m of Levelling Up Partnership funding.
Chancellor of the Exchequer, 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. This is just one of billions of pounds worth of investments being announced at our Regional Investment Summit, reversing decades of underinvestment and decline, slashing red tape to open up opportunities for businesses and kickstarting economic growth in every corner of the UK.”
The HDHN will deliver an estimated 110,000 tCOe of carbon savings over 40 years, providing a significant contribution to Hull’s net zero targets. Construction, operation and maintenance of the HDHN will be completed by Vital Energi who will deliver £3m worth of community benefits, including utilising local supply chain.
Cllr Charles Quinn, Hull City Council’s portfolio holder for environment, said: “Hull District Heat Network is an ambitious project which reaffirms the council’s commitment to become carbon neutral by 2030 and net zero by 2045. It will provide sustainability for city centre council buildings in the long-term, as well as scope for expansion on demand in the future. Delivery will create employment and investment opportunities in Hull, really boosting the local economy.”
The funding has been praised and welcomed by the MP for Hull West and Haltemprice, Emma Hardy who has described the investment as “a win for everyone.” She added: “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.”
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