Cory has received £12.1m of funding from the Heat Networks Investments Project (HNIP).
The funding, which consists of a £1.6m commercialisation grant and £10.5m construction loan, will be used for the development of a heat network at both of Cory’s energy from waste (EfW) plants in Belvedere.
The HNIP was first announced by the government in 2016 and consists of £320 million capital funding for England and Wales.
The district heating network is anticipated to supply “low carbon heat” to 21,000 homes.
Up to 10,500 homes in Bexley will be supplied with heat in the first phase of the project using heat from Cory’s operational facility at the site.
Cory’s second EfW facility, which received planning permission from the government in April 2020, will supply an additional 10,500 homes when operational.
Serving a combined 21,000 homes, the heat network will be among the largest in the UK.
Cory will work with Vattenfall to deliver the project; a collaboration that will also support Vattenfall’s wider vision to deliver “low carbon heating” to 75,000 homes across the Thames Estuary over the next decade.
The wider heat network will draw on secondary heat sources, such as heat as a by-product of commercial or industrial activities, or heat from the environment.
Dougie Sutherland, CEO at Cory, said: “We are delighted that BEIS is supporting the development of one of the UK’s largest heat networks. This is a very major step towards net zero, providing low-carbon heat for thousands of homes and businesses in Bexley and its surrounding boroughs.”
Lord Callanan, minister for climate change and corporate responsibility, added: “Changing how we heat our homes is a vital part of eradicating our contribution to climate change by 2050. This ground-breaking project will not only establish one of the UK’s largest heat networks but will help accelerate the roll out of cutting-edge low-carbon technologies.
“We are supporting the project with £12 million funding, which will directly benefit 21,000 households, as part of our commitment to ensure the UK’s towns and cities are cleaner places to live and work.”
“We are delighted that BEIS is supporting the development of one of the UK’s largest heat networks”
Manchester and Cambridgeshire
The announcement of funding for Cory was one of three made last week. .
An award of over £14.7m was also allocated for a heat network project located in Manchester city centre, while Cambridgeshire county council has been awarded more than £3.2m from the fund for a network in the village of Swaffham Prior.
The funding will help the village to transition from oil to low carbon heating and will combine a ground source heat pump and air source heat pump to provide “zero carbon heating to homes within the village”.