The funding is part of a £24 million package – delivered through the government’s Heat Networks Investment Project (HNIP) – to support the generation of heat using excess heat from industrial applications to provide heating for businesses and homes.
As well as energy from waste projects, biomass boilers, heat pumps and combined heat and power facilities were also eligible for funding through the scheme.
Sheffield council was one of 13 successful bidders to the fund, with funding expected to be released later this year.
Climate Change and Industry Minister Nick Hurd said: “This Government is committed to ensuring a clean, secure and affordable energy supply for communities and businesses across the country.
“Energy innovations like heat networks can cut costs for households and reduce carbon emissions, as almost half of the energy we use goes towards heating our homes and buildings.
“The £24 million in Government funding awarded to these projects will help deliver low carbon energy at competitive prices for local consumers.”
Expansion
Sheffield will be using the £5.7 million in funding to expand the existing network, which currently supplies heat taken from the city’s energy from waste plant to around 130 buildings and has been running since 2015.
The network will be expanded to also take in heat from the Blackburn Meadows waste-wood fed biomass plant, operated by energy supplier E.ON – around 5.5 km north east of the city centre – and will be used to supply heating for a new retail park and the Northern General Hospital.
The funding for Sheffield is the largest proportion awarded to an individual project as part of the HNIP. Other councils set to benefit from a total of £24.2m in Government funding are Camden, Manchester, Westminster, Colchester, Waltham Forest, Barking and Dagenham, and Crawley.
Emissions
Councillor Bryan Lodge, cabinet member for the Environment at Sheffield City Council, said: “This is great news for Sheffield. Expanding our innovative district energy network by linking it to additional renewable and sustainable energy sources will in turn lead to lower carbon dioxide emissions, not just because people will be using renewable energy rather than gas boilers, but also because using local fuel resources minimises any emissions generated from transportation.
“The existing district energy network, powered by the Bernard Road energy recovery facility, is near to capacity. However, by expanding to include the biomass plant at Blackburn Meadows, this creates more expansion opportunities to the north and east of Sheffield, therefore creating significant opportunities to increase the reach of district heating.”
All funding will come from the HNIP programme and from E.ON’s own resources, with no costs to be met by the council.
Construction could begin as early as July this year, with phase one of the scheme being completed in March 2018.
The scheme is subject to formal approval from the Council in order to draw down the funds, and signed formal agreements with E.ON.
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