Under the long-term arrangement, Enfinium, who will be the anchor source for the network, will initially provide 6MWth of bulk heat to the network, with supply expected to begin from the first quarter of 2027.
The agreement is designed to support the phased expansion of the heat network as demand grows from local businesses and potentially homes in the surrounding area.
Nathan Sanders, Managing Director for Distributed Energy, SSE said: “This is a positive milestone for our low-carbon heat network with Enfinium in West Yorkshire.
“When constructed, the project will unlock new and plentiful heat sources, continuing to help West Yorkshire Combined Authority meet its ambitions of a net zero carbon region by 2038”.
Skelton Grange EfW
The Skelton Grange EfW facility officially opened in September 2025 and represents an investment of around £500 million.
The plant is expected to process up to 410,000 tonnes of waste per year, generating electricity and now, through the SSE agreement, supplying heat for district heating.
Located in Leeds, the facility forms part of Enfinium’s UK EfW portfolio and is intended to divert waste from landfill while recovering energy value.
The addition of a heat offtake arrangement enables combined heat and power-style benefits, increasing overall energy efficiency by making use of thermal output that would otherwise be lost.
Mike Maudsley, Chief Executive Officer at Enfinium, added: “Heat networks only work when they are rooted in place.
“With Skelton Grange becoming the long-term anchor supplier of low-carbon heat into the Aire Valley Heat Network, Enfinium is helping keep energy local, cut carbon, and make better use of our resources.
“This is the circular economy in action: unrecyclable waste diverted from landfill, turned into low carbon energy, and reused to support critical local infrastructure over the long term.”
UK heat networks
Heat in buildings currently account for 37% of national carbon dioxide emissions.
Yet as of 2024, only around 3% of UK heat demand is currently met by district heating networks.
Government policy aims for this to reach 20% by 2050, an ambition that would require tens of billions in new infrastructure and long-term certainty for investors.
The Aire Valley scheme has received £10.81 million from the Government’s Green Heat Network Fund (GHNF), which supports the development of low-carbon heat projects.
In February 2025, the GHNF allocated £34 million across projects in the UK, including £7.73 million to EfW-linked heat network schemes in Cranbrook and Maidstone.
Subscribe for free