The government has announced £90 million of funding for new and upgraded heat networks.

Heat networks heat multiple buildings from a central source, for example by taking excess heat generated from a data centre, or from a factory, via a network of pipes carrying hot water which provide communities with low-cost and efficient heat.

It is hoped that residents will benefit cheaper heating and improved efficiency through brand new low-carbon heating and repairs to faulty pipes.

The projects will also create more than 2,000 jobs.

In London, a mega heat project under and alongside the River Thames will supply 650,000 homes with clean heat, with the potential to benefit over a million residents. This project is backed by £41 million and will transport hot water 25 kilometres by electric barges down the River Thames and then via a specially constructed tunnel underneath the river, heating homes and businesses across the city along the route. It is anticipated that this will help unlock around £5 billion of investment in London’s local heat networks and support skilled jobs in tunnelling, engineering and river transport.  

In Bradford, a hospital and seven schools and colleges will benefit from cleaner heating and lower bills thanks to an extension of the original heat network in the city, funded by a £9.7 million award.

Minister for Local Energy and Jobs Martin McCluskey said: "Clean power and clean heat benefits communities across our country. Building the infrastructure to deliver it is reindustrialising the UK and rolling out cutting-edge energy technology so families can benefit from lower bills, good jobs and energy security.

"And for those already using heat networks, we are upgrading inefficient systems to make sure people get the high-quality, low-cost, reliable heating they deserve."