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1Energy secures £17.6m in government funding

Low-carbon heat network developer 1Energy has announced it has secured £17.6m of UK government funding with the Milton Keynes University Hospital signed as the anchor customer for its city-wide project. The company is also in negotiations with several other significant

October 28, 2025_
James Evison

Low-carbon heat network developer 1Energy has announced it has secured £17.6m of UK government funding with the Milton Keynes University Hospital signed as the anchor customer for its city-wide project.

The company is also in negotiations with several other significant heat users across the city. The project represents over £78m of private capital investment for Milton Keynes, which will be built at no cost to the local council or community. 
  
The Milton Keynes Energy Network will cut air pollution from the hospital’s main site and other buildings across the city by 80%, improving public health and reducing healthcare costs.

 Repurposing waste heat from two nearby data centres and utilising a heat pump-powered energy centre to the north of the city, the project will supply businesses, hospitals, universities and homes with clean heating. It will do so via a 20km (12 mile) network of underground hot water pipes.

The plan is to warm 74 buildings in this way, with the ability to generate enough heat to supply the equivalent of 20,000 homes per year. The scheme is scheduled to be completed by 2027. 
  
The network enables the removal of individual gas boilers and eliminates reliance on fossil fuels. As such, it will make Britain less reliant on imported fossil fuels and thus, less vulnerable to sudden changes in international gas prices. 
  
The scheme will also play a vital role in helping fulfil the net zero ambitions of both the city and the NHS, the firm said.

The announcement follows the launch of Milton Keynes City Council’s Heat Network Policy – a key part of their plan for the city to reach net zero by 2030, it said.

This scheme is projected to save over 15,000 tonnes of carbon dioxide (CO2) per year, the equivalent of planting more than 238,000 trees, by reducing emissions from buildings by 75%.

1Energy said it was “committed to developing a strategy to be net zero by 2030” too.
  
Tony Marsh, Director of Estates & Facilities, Milton Keynes University Hospital NHS Foundation Trust, commented: 

“Joining the Milton Keynes Energy Network is a major step forward in our journey to become a net zero hospital. This partnership will allow us to cut carbon emissions significantly while ensuring our heating infrastructure is resilient and future ready.

“As a healthcare provider, we have a responsibility to protect both the health of our patients and the health of our planet, and this project enables us to do both. We’re proud to be working with 1Energy to deliver a greener, more sustainable future for Milton Keynes University Hospital.” 
  
Commenting on the news Jeremy Bungey, Executive Director of 1Energy, said:

“At 1Energy, our mission is to decarbonise heat — one of the toughest challenges in reaching net zero. The Milton Keynes Energy Network is a vital step in that journey, delivering efficient, low-carbon heating infrastructure that cuts emissions, improves energy security and supports public services like the NHS.

“It’s also an example of how we can repurpose waste heat into community value, powering a cleaner, healthier and more sustainable future.”

Image courtesy of 1Energy

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