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Launched in 2022 with an initial £288 million, the Green Heat Network Fund (GHNF) is a critical pillar of the UK’s push to decarbonise heating. By funding new and existing heat networks, the initiative helps councils, universities, and businesses shift away from gas dependency while enhancing resilience against volatile energy prices.
Programme director Ken Hunnisett said, “We’ve started 2025 with the same incredible momentum that we finished last year with. The projects supported in today’s announcement highlight the hard work, ingenuity, and collaboration powering the transition to a greener future for our built environment and the people who live and work among it.
“As well as homes and businesses, we’re particularly excited to play a role in decarbonising some of the world’s best and most prestigious university buildings.”
Today (14 February), the UK Government confirmed the allocation of a fresh £34 million tranche from the GHNF. The fund, managed by Triple Point Heat Networks Investment Management, supports projects aligned with the Climate Change Committee’s (CCC) recommendation that heat networks supply at least 18% of UK domestic heating by 2050—up from just 2% in 2020.
Key Projects Benefiting from GHNF Funding:
🔹 Leeds: Aire Valley Heat and Power Network (£19.5M)
Receiving the largest share, this SSE Energy Solutions-led initiative will capture waste heat from the under-construction Skelton Grange energy-from-waste (EfW) plant. The network is set to power dozens of industrial and commercial sites within the Aire Valley, home to around 400 businesses.
🔹 East Devon: Cranbrook Heat Network Expansion (£6.95M)
East Devon District Council will extend the Cranbrook network to 4,500 new homes and 24,500m² of commercial and community space. Operated by E.ON, this network is already harnessing waste heat from an EfW facility.
🔹 Maidstone: Town-Wide Heat Network (£782,500)
Kent’s largest town will develop a heat network fuelled by the Allington Integrated Waste Management Facility, owned by Green Recovery Projects Limited. This system will serve 80,000m² of public sector buildings alongside residential and commercial properties.
🔹 London: Bloomsbury Heat and Power Scheme (£7.2M)
The only non-EfW project in this funding round, the University of London will overhaul its 80-year-old heat infrastructure, replacing gas- and oil-fired systems with air-source heat pumps. This marks a significant step in modernising the Bloomsbury Heat and Power Decentralised Energy Scheme.
The University of London’s Pro Vice Chancellor for finance and operations, Rita Akushie, said: “Introducing the new system involves the replacement of a vast network of historic and underground infrastructure, and on completion will mean the Bloomsbury Estate is decarbonised by 99%, making the new system greener, cleaner and more efficient for all.”
Beyond direct funding, the Department for Energy Security and Net-Zero (DESNZ) has unveiled a groundbreaking analysis pinpointing 15 regional zones primed for heat network expansion. These areas represent an immediate £10 billion investment opportunity, with a long-term growth potential of £70 billion by 2050.
Commenting on the reports, the Association for Decarbonised Energy’s head of external affairs, Pablo John, said: “It’s vital to remember that these reports are a snapshot in time. As modelling improves, costs fall, and innovation accelerates, the zones will evolve. The true potential of heat networks extends far beyond today’s boundaries. But speed is critical. Government must now finalise zoning policy, unlock concessionary finance, and level the playing field for low-carbon heat. Failing this, we risk leaving billions in local infrastructure on the table.”