Low-carbon city heat network developer 1Energy has pledged £100m of private capital for a city-wide heat network for Derby.
The move follows the company securing £23m of investment into the project from the UK Government. Developed at no cost to the local community or council, the Derby Energy Network will cut city wide gas demand by around 7%.
It will supply the city with low-carbon heating via underground hot water pipes, using water source heat pumps to repurpose surplus heat from local businesses, with 1Energy stating it could invest more than £140m into the network as it grows.
Major organisations in the city, including Derby City Council, the Royal Derby and Florence Nightingale Hospitals, the University of Derby and Derby College, are working with 1Energy to advance the network, with plans to begin construction in 2026. Additionally, other businesses, such as Rolls-Royce and SmartParc could soon be linked up via the project.
The network will play a vital role in reducing air pollution. It is projected to save around 20 tonnes of air pollutants that can cause respiratory problems – equivalent to taking 16,000 cars off the road for a year. It will also create and support hundreds of jobs, apprenticeships and supply chain opportunities locally.
Andrew Wettern, CEO of 1Energy, said:
“Derby has long led the world in terms of innovation, from water networks to defence. We are delighted to bring long-term investment to the city and build on its rich industrial heritage, enabling leading businesses to play a key role in delivering a new utility model.
“Home to world-renowned innovators, Derby is uniquely placed to lead the transition to a more secure energy future. Alongside transforming the city’s energy infrastructure, the Derby Energy Network will give businesses greater choice and long-term price certainty. All while unlocking economic, health and environmental benefits for the city, the region and the country. We are exciting to continue working with Derby’s trailblazers to develop the network.”
Baggy Shanker, Member of Parliament for Derby South, said:
“The Derby Energy Network represents a huge opportunity for our city to deliver another cutting-edge project, continuing our long-standing leadership on innovation. By combining private capital and public investment, it will bring hundreds of millions of pounds into Derby. I see it playing a key role in boosting economic growth.
“It is great to hear the project will also create hundreds of skilled local jobs, including apprenticeships. As a former apprentice myself, I know first-hand how transformative they can be.”
Councilor Carmel Swan, Cabinet Member for Climate Change, Transport and Sustainability at Derby City Council, said:
“This is brilliant news for our city. 1Energy’s £100m investment in low-carbon heating will mark a transformative step forward for Derby – not only in our mission to tackle climate change by cutting carbon emissions, but also in fostering healthier, more resilient communities.
“This initiative will help to keep homes and buildings across Derby warm in a more sustainable way whilst delivering wider benefits, from improving air quality and reducing fuel poverty, to enhancing public health and wellbeing.”
Phil Lovell, COO at SmartParc, said:
“At SmartParc, we are pleased to be working with 1Energy Group, to jointly explore opportunities to provide low carbon heat to the Derby Energy Network. Collaboration opportunities offer greater scope to harness the work we’re already doing at SmartParc for the benefit of the wider city.
“By harnessing innovative technologies and shared values, we’re contributing to a cleaner, greener Derby while supporting businesses and organisations across the city in their transition to net zero.”
Image courtesy of 1Energy
