The National Wealth Fund has today announced financing for Hull City Council’s district heat project, which will provide low-carbon, reliable heat to buildings across the city centre. Phase one of Hull District Heat Network (HDHN), a cheaper alternative to other decarbonised heat solutions such as individual Air Source Heat Pumps, will service council properties, educational establishments, development sites and residential properties.
It will also provide a return for the council over the lifetime of the project, by providing affordable, clean energy to buildings, which will allow money to be allocated to other services. This represents a major step forward in Hull’s ambitions to become carbon-neutral by 2030 and net zero by 2045.
HDHN is the second local authority heat network to be backed by the NWF and directly supports Government ambitions to decarbonise the UK’s building stock – currently the second largest contributor to carbon emissions after transport. The council also benefited from the NWF Local Authority team’s advisory service which supported the development of a strong financial plan for the project.
It is funded through a £15m grant from the Green Heat Network Fund, via Triple Point, £1.5m of Levelling Up Partnership funding and a £27m loan from the NWF which will be repaid through the operation of the network, representing a major investment into Hull’s future.
It will generate heat using heat pumps from an energy centre in Hull city centre for which planning permission has been secured and construction work will soon begin.
A series of underground pipes will supply the clean, renewable heat which will improve air quality, provide opportunities for new green energy jobs and create an environmentally
friendly city.
HDHN will deliver an estimated 110,000 tCOe of carbon savings over 40 years, providing a significant contribution to Hull’s net zero targets.
Speaking on the investment, Emma Hardy, MP for Hull West and Haltemprice said: “This is exactly the kind of practical action on the cost of living that Hull residents need, and it’s only
possible because the Labour government created the National Wealth Fund. By backing Hull’s district heat network, we’re delivering a cheaper, cleaner alternative to other decarbonised heat solutions saving money for council buildings, schools, homes, and businesses across our city.
“It’s a win for everyone: it puts money back into local services, creates more green jobs, improves air quality and helps Hull lead the way in the green transition. This is a brilliant example of how Labour is using the National Wealth Fund to invest in Britain’s renewal supporting local authorities, creating jobs, and delivering real benefits to our community.”
Chancellor of the Exchequer, Rachel Reeves, said: “We are investing in Britain’s renewal, and this National Wealth Fund loan will heat buildings across Hull with clean energy, open up new jobs in green energy, and strengthen the city’s energy security.
“This is just one of billions of pounds worth of investments being announced today at our Regional Investment Summit, reversing decades of underinvestment and decline, slashing
red tape to open up opportunities for businesses and kickstarting economic growth in every corner of the UK.”