Heat Networks Investment Project (HNIP) pilot
Updated 15 February 2019
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This publication is available at https://www.gov.uk/government/publications/heat-networks-investment-project-hnip/heat-networks-investment-project-hnip-pilot-scheme-update
Successful projects
Sheffield City Council
Project name:
Sheffield District Energy Network development
Amount awarded:
£5.73 million (£2.23 million grant and £3.5 million loan)
Description of project:
Technology - Energy from waste plant Expansion and interconnection of 2 heat networks
Update:
This project is now not going ahead. See below.
Camden Council
Project name:
Somers Town Energy (Phase 2)
Amount awarded:
£1.05 million grant
Description of project:
Technology: Gas CHP Expansion of an existing heat network
Manchester City Council
Project name:
Manchester Civic Quarter Heat Network
Amount awarded:
£2.87 million grant
Description of project:
Technology: Gas CHP New heat network
Colchester Borough Council
Project name:
Colchester Northern Gateway
Amount awarded:
£3.51 million grant
Description of project:
Technology: Heat Pump New heat network
London Borough of Waltham Forest
Project name:
Wood Street South
Amount awarded:
£1 million grant
Description of project:
Technology: Gas CHP New heat network
London Borough of Barking & Dagenham
Project name:
Becontree
Amount awarded:
£1.08 million grant
Description of project:
Technology: Gas Boiler New heat network
Westminster City Council
Project name:
Church Street District Heating Scheme
Amount awarded:
£2.56 million grant
Description of project:
Technology: Gas CHP New heat network
Crawley Borough Council
Project name:
Crawley Town Centre Heat Network
Amount awarded:
£1.4 million grant
Description of project:
Technology – Biomass & Gas CHP New heat network
Manchester City Council
Project name:
St Johns heat network
Amount awarded:
£5 million loan
Description of project:
Technology: Gas CHP New heat network
Update:
This project is now not going ahead. See below.
Total awards
Total:
£24.21 million
Total Capex:
£75.14 million
Update
On 7 April 2017, the government announced awards totalling over £24 million to 9 projects in the pilot phase of the Heat Networks Investment Project (HNIP).
One of the projects was the Sheffield District Energy Network, developed by Sheffield City Council in partnership with E.ON. Following the detailed development work carried out during its commercialisation phase, the project was deemed by the parties involved to be no longer economically viable and will not now go ahead. This is due to key potential heat loads now expected to materialise at a later date than previously anticipated, along with a more advanced assessment of project costs.
The HNIP funds provided for the project so far will be returned to BEIS. The project has provided a number of valuable learnings that will aid the development of heat networks and the HNIP main scheme for BEIS and in Sheffield going forward.
BEIS is grateful to Sheffield City Council and to E.ON for their work on the project to date and will continue to work with them, and other local partners, to help develop heat networks in the area. Other projects awarded funding in the HNIP pilot are still ongoing.
A further project which was offered funding in the HNIP pilot was a proposed heat network in the St Johns development in Manchester, which applied for HNIP funding through Manchester City Council and would have been developed by Allied London. Since their HNIP award was announced, the development has evolved and, as it has done so, the parties involved have decided that building level solutions, rather than a heat network, would better meet their requirements. The HNIP loan support offered to Manchester City Council for this project will not, therefore, be drawn down.
BEIS is grateful to Manchester City Council and Allied London for their work on this project and will work with them as they explore other opportunities for heat networks in Manchester.