Iconic London buildings in the heart of the capital will be heated by the low carbon heat network in a £1bn scheme expected to create 500 jobs and save 75,000 tonnes of CO2 every year.
The large new heat network in Westminster is set to be one of the UK’s first ‘heat network zones’.
These are places where heat networks are the cheapest and best way to decarbonise compared to each building having its own air source heat pump.
On average, heat networks are 40% cheaper for customers than building level heat pumps.
With construction set to start in 2026, the pioneering heat network will supply low carbon heating, sourced in the local area. The heat will come from innovative sources such as the London Underground, the Thames, the sewer network, and might even come down river on barges.
The heat will then be distributed via a network of underground, insulated pipes filled with hot water in a zone stretching from around Victoria Station, up to Temple Underground Station near the Strand, bounded by St James’ Park.
Over time, this significant new investment is expected to save 75,000 tonnes of CO2 every year, (equivalent to removing 40,000 cars from the road), create 500 jobs, improve local air quality by reducing nitrogen oxides emissions by 99%, and create fresh opportunities for UK businesses.
The South Westminster Area Network (SWAN) was brought to life by the Department for Energy Security and Net Zero, and Westminster City Council.
The SWAN Partnership – a joint venture between Hemiko and Vital Energi – will fund, build and operate the network. They plan to invest £100m within three years, £500m within 10 years, and £1bn by 2050 into what will become one of the UK’s biggest heat networks.
The government wants to replicate the scheme in zones across the country.
By 2050, every major town and city is expected to need district heat networks, requiring over £100bn of private investment and 290k new jobs in total.
It is not yet known who will join up to this heat network, but Project SWAN could serve landmark buildings like the Houses of Parliament and the National Gallery, alongside buildings owned by Westminster City Council and the Government.
Businesses are encouraged to register their interest in joining the network, by emailing SWAN@hemiko.com. First movers are needed to unlock this least cost decarbonisation pathway and the jobs that come with it, for the benefit of everyone in Westminster. The more who join up, the cheaper it is for everyone.
From start to finish, it took just four months from the launch of the competitive process to signing the contract for SWAN and beginning the development work, five times faster than most procurement exercises run to date.
This new procurement approach is expected to speed up the delivery of heat networks, decarbonise the UK faster, and create a more investable heat networks market. This model, and variations of it, is expected to be replicated by at least 7 projects across the country within the next year alone, with more thereafter.
Cllr Adam Hug, Leader of Westminster City Council, said, “We know that the gas used to heat and power buildings is one of the biggest contributors to both carbon emissions and air pollution in Westminster.
“However, these new low-carbon district heat networks will tap into local waste heat sources, delivering clean and affordable energy to those who need it most. The SWAN project will be a crucial piece of our net zero carbon journey in Westminster, leading the way for others and showing what a positive clean energy future could look like.”
