The Department for Energy Security & Net Zero (DESNZ) has appointed Swan Partnership, a joint venture of Hemiko and Vital Energi, to invest in and deliver the planned South Westminster Area Network (SWAN) heating scheme.
The SWAN scheme, designed by Aecom, will exploit waste heat generated by the River Thames, London Underground and the capital’s sewers to heat around 1,000 buildings.
According to Aecom, buildings in the area served by the heat network could save 92% of CO2 emissions compared to current levels and, by 2040, the scheme could help save Westminster 75,000 tonnes of CO2 each year.
The scheme has the potential to stretch from Victoria Station up to Temple Underground Station near the Strand, bounded by St James’ Park and the River Thames.
Hemiko and Vital Energi will develop clusters of heat networks in the zone. Over time, the heat networks will grow and connect with one another to become a single large central London heat network. It is expected that the first heat will be provided in 2026, with the network due to be entirely connected and complete by 2050.
Hemiko chief executive Toby Heysham said: “Using heat from the iconic River Thames and London Underground to heat some of the capital’s most famous buildings is a true story of pro-growth circular economy in London.
“Heat networks are the next big utility in the UK, and we are investing £1bn over the next six years into networks that will allow local people and businesses to make use of locally wasted heat. We strive to embed ourselves in the local community, understanding the pressures and opportunities in the area, and figuring out how we can help, such as bringing high-quality green jobs and supply chain opportunities.
“This network will be the flagship network in the UK, the first new zonal scale network in a market that offers an investment potential the size of the UK offshore wind industry. Steps like this show that the UK heat networks market is open for business.”
Aecom head of heat networks Channa Karunaratne said: “Heat networks are crucial to the UK’s energy transition. We need to move away from fossil fuels, work towards energy independence and enable growth in our buildings and places, and heat networks are a vital part of the solution. They will not only help the UK reach its 2050 net zero target, providing homes and businesses with low-carbon heat but also provide other vital benefits like improved air quality to our communities.
“The size and ambition of SWAN demonstrate how to drive decarbonisation at a city-scale, and it is a trailblazer for how our cities can operate more sustainability. Westminster is one of the most recognisable locations in the world and through SWAN, the political engine of the UK is going to be supplied almost entirely with low-carbon heat for the first time.
“Since SWAN’s inception, we’ve worked in partnership with DESNZ to commercialise the scheme and accelerate private investment. Reaching today’s milestone with the appointment of Hemiko and Vital Energi is a proud moment for our team and an important step forward for this ambitious project that is helping to secure a low-carbon future for London.”
Energy minister Miatta Fahnbulleh said: “Taking waste heat from the River Thames and London Underground to heat such iconic places as the Houses of Parliament and the National Portrait Gallery is a really exciting example of what lies ahead on our journey to low-cost, low-carbon heating.”
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