Two heat network projects get £16m combined funding boost
TWO heat network projects in Cardiff and Bridgend, which will provide low-carbon energy to hundreds of buildings and homes, have secured a combined £16m funding boost.
Both projects have been awarded £8m in funding through Triple Point Heat Networks Investment Management, the UK Government’s delivery partner which has successfully awarded funding to 18 projects in total as part of the Heat Networks Investment Project (HNIP).
And in a further boost to the Cardiff project the Welsh Government is also providing it with an interestfree loan of £8.6m.
Following a successful HNIP application, Bridgend County Council has received a £1.2m commercialisation and construction grant for a heat network which will deliver heat to a number of publicsector buildings in the town centre.
The network has been designed to enable future expansion to additional properties in the local area, including businesses and residential units
The energy centre will be based at the Bridgend Life Centre and will initially use gas-fired combined heat and power (CHP) with back-up gas boilers.
These will be replaced with a larger CHP unit and new backup peak boilers with the addition of thermal storage tank at the rear of Bridgend Life Centre as the scheme develops.
Cardiff council has been successful in receiving a £6.6m construction grant for its Cardiff Heat Network, which will utilise heat from a waste-to-energy plant in Cardiff Bay.
By reusing heat from the waste plant at Trident Park, those connected to the Cardiff network could reduce their carbon emissions by up to 80%. This could save 18,000 tonnes of CO2 over the next ten years – the equivalent of planting 7,000 trees.
Heat networks are a distribution system of pipes that take heat from a centralised source and deliver it to a number of different buildings and provide lower-carbon heat sources.
Minister of State for Energy and Clean Growth Kwasi Kwarteng said: “These projects in Wales will help ensure that low-carbon sources of heating are available across the UK.
“Projects in Bridgend and Cardiff will help connect as many homes and businesses as possible to lowcarbon affordable heating – by cutting bills and emissions we can achieve our net-zero target in a way that works for residents across the UK.”
Secretary of State for Wales Simon Hart said: “Heat networks form an important part of the UK Government’s plan to reduce carbon emissions and cut heating bills for consumers.
“This £8m investment will help heat hundreds of homes and buildings using cheaper, greener energy across Bridgend and Cardiff. It also marks another step forward for our ambitious Clean Growth Strategy and moves us closer to our target of net-zero greenhouse gas emissions by 2050.”
Minister for Environment, Energy and Rural Affairs Lesley Griffiths said: “I am delighted Bridgend and Cardiff have been successful in gaining this funding, which builds on the hard work of the local authorities, with support from Welsh Government’s Smart Living programme and the Energy Systems Catapult to help develop Bridgend’s smart systems and heat strategy.
“We have also announced an interest-free loan of £8.6m to support the Cardiff City Heat Network.
“These projects are just two of a number we are happy to support through our Welsh Government Energy Service, to make sure homes and businesses have access to clean, affordable heat.”
Ken Hunnisett, project director at Triple Point Heat Networks Investment Management, said: “One of the aims of HNIP is to deliver affordable and dependable lowcarbon heat, and so the announcement of the first HNIP-funded heat networks in Wales is a significant milestone.
“The projects will deliver significant benefit to both consumers and the environment and will demonstrate the role heat network schemes can play in meeting carbon targets by reducing emissions from buildings.”