The company has signed a 25-year contract with real estate firm Greystar to design, build and operate a new district heating network serving six apartment blocks within Greystar’s Bermondsey Project development.
Once operational, the scheme is expected to cut around 1,524 tonnes of carbon dioxide emissions per year.
John Abraham, Chief Operating Officer for Industrial, Water & Energy UK, Ireland & Nordic at Veolia, said: “This will make a significant difference to the people it serves, delivers increased energy security and resilience, and will help advance sustainability in London.”
Waste-powered heat for Bermondsey
The expanded network will draw hot water from the South East London Combined Heat and Power (SELCHP) EfW plant in Lewisham.
Due to begin operation in May 2026, the Bermondsey network will distribute recovered heat at around 75°C through insulated pipes to connected buildings.
According to Veolia, almost a third of the UK’s final energy use is consumed as heat across domestic, commercial and public sectors.
Abraham continued: “This latest heat network will further advance the progress to reach the important net zero goals that protect the environment and lower climate change.
“Locally sourced energy, derived from previously untapped resources such as waste, is becoming a true driver of regional growth.”
Philip Hirst, Director of Sustainability at Greystar, added: “Trends such as urbanization, energy transition and digitization require a forward-thinking approach to infrastructure.
“The connection to decarbonised SELCHP heat network aligns with Greystar’s net zero and infrastructure ambitions, whilst also providing value to our Bermondsey residents with locally generated, low carbon heat.”
London’s heat networks
The Bermondsey scheme adds to a growing list of heat networks across the capital making use of waste heat from energy recovery facilities.
The Greater London Authority (GLA) has mapped waste heat sources and transmission corridors as part of its London Waste Heat Study, identifying the city as one of the UK’s most promising regions for large-scale heat network roll-out.
Cory announced plans in September 2025 to channel waste heat from its Riverside 1 EfW facility in Bexley into a London heat network.
Earlier this year the government’s Green Heat Network Fund (GHNF) awarded £34 million to support low-carbon heating projects across the country, including £7.73 million for EfW-linked networks in Cranbrook and Maidstone.
Major London schemes such as the South Westminster Area Network (SWAN) and the Old Oak and Park Royal Energy Network (OPEN) are also advancing, signalling a wider shift towards utilising waste-derived heat to meet the city’s decarbonisation targets.
Councillor John Batteson, Cabinet Member for Climate Emergency, Jobs and Business, commented: “This ambitious project will provide thousands of residents with cleaner energy sourced locally in south-east London, making positive use of waste generated in Southwark and the wider area while reducing the borough’s carbon footprint in the process.”
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