£75m investment secured to scale city-wide heat network

Low-carbon city heat network developer, 1Energy, has secured £75m of investment and three anchor customers for its heat pump-powered network in Bradford.

With the support of its key partners – the University of Bradford, Bradford College, and Bradford Courts – the Bradford Energy Network aims to enable the rapid decarbonisation of heating, the country’s biggest source of carbon emissions.

With 1Energy recently breaking ground on its energy centre, its approach combines £75m of private capital and public investment in Bradford. This total includes £20m of investment from the UK Government’s Green Heat Network Fund.

Using Bradford as a blueprint, 1Energy has ambitions to deploy £1bn within the next eight years into building new city-wide, low-carbon heat networks across the UK.

This will be primarily funded by investment from UK and global institutional investors through Asper Investment Management’s dedicated fund, which supports the development, construction and operation of 1Energy’s heat networks.

These networks will help achieve Britain’s climate goals by providing a locally generated, sustainable alternative to heat produced by fossil-fuel gas boilers, which currently powers over two million businesses and 24.5 million homes, throughout the UK.

The Bradford Energy Network is projected to reduce the carbon emissions from heating connected buildings by 80% during its first phase, supporting the council’s city-wide net zero targets.

Andrew Wettern, CEO of 1Energy, said: “We cannot reach net zero without decarbonising heat. We are proud to be delivering a city-wide solution to this challenge for Bradford alongside the University of Bradford, Bradford College, and Bradford Courts.

“The Bradford Energy Network is a flagship project in the UK’s transition to low carbon heating.

“Crucially, it also provides a blueprint for national rollout, successfully demonstrating how to: deploy institutional investment alongside Government funding, deliver savings for customers in the transition, and decarbonise existing and new buildings across a city through an exemplar low carbon heat network.

“The project is already delivering significant social value and wider benefits to the city – creating new jobs and skills, utilising the local supply-chain and creating a more favourable environment for inward investment into Bradford.”

1Energy says its project will save its three key partners 29,780 tonnes of carbon dioxide, equivalent to taking over 21,360 cars off the road.

Professor Shirley Congdon, Vice-Chancellor of the University of Bradford, said: “This represents a pivotal moment for the city and the UK.

“As an anchor customer of the Bradford Energy Network and strategic partner of UK City of Culture 2025, we are proud to have played a vital role in helping build a healthier, greener Bradford.

”The network provides an opportunity to show the Government how to build a brighter future for young people across the country, with other cities following in Bradford’s footsteps.”

Chris Malish, Vice Principal of Bradford College, said: “Joining the Bradford Energy Network is another significant milestone in Bradford College’s sustainability strategy.

“After all the planned works are complete, a total annual direct carbon saving of over 285 tonnes per year is predicted, moving us a step closer to achieving Net Zero

“Nearly 3,500 staff and students based at our David Hockney Building and Advanced Technology Centre will benefit from this transition to renewable energy.

“Given Bradford is one of the UK’s youngest cities, it’s vital we future-proof our region for the next generation.”

Ade Alao, head of capital improvement at HM Courts and Tribunals Service, added: “Our exciting partnership with the Bradford Energy Network will help cut emissions while heating the court for years to come.

“It will save hundreds of tonnes of carbon emissions over the course of two decades as part of our transition to a more environmentally sustainable courts estate.”