Heat Network Projects Quarterly Report: Q1 2023
7th August 2023

The Heat Network Projects Quarterly Report – July 2023 has been published by the Scottish Government.

This report summarises the projects supported by Scotland’s Heat Network Fund (SHNF) and the Heat Network Support Unit (HNSU). These funding programmes contribute to our Heat Networks (Scotland) Act 2021 targets to reach 2.6 TWh of output by 2027 and 6 TWh of output by 2030.

The Heat Network Support Unit

The Heat Network Support Unit (HNSU) supports the growth of heat networks by addressing key challenges in the pre-capital stages of heat network development and building capacity across the public sector to deliver successful projects. The HNSU is sponsored by the Scottish Government, with Scottish Futures Trust and Zero Waste Scotland as core partners who provide a range of support services via the HNSU.

Energy centre - St Andrews
St Andrews energy centre (Image courtesy of University of St Andrews)

This quarter, the HNSU welcomed several new projects. One such project is led by the University of St Andrews who propose the extension of an existing biomass heat network in and around the St Andrews area. Since its commissioning in 2017, the existing heat network, sourced by a 6.5MW biomass boiler has provided heating and hot water to 50 University campus buildings via 27 km of pipe, accumulating savings of 20,000 tCO2e. The feasibility study will explore different options to identify a preferred extension scenario, which could include public sector buildings, schools and hospitality venues.

Additionally, the HNSU is supporting the Dundee Baldovie project. This project proposes the creation of a heat network for the Whitfield and Douglas area with heat supply from the Baldovie Energy from Waste facility. The proposed heat network would supply a new build school with potential to extend the scheme towards Dundee City Centre.

Information on other newly and existing supported projects can be found within the report. We estimate that the current projects supported through the HNSU will require investment of at least £200 million and supply approx. 0.2 TWh of heat via heat networks if brought forward.

Scotland’s Heat Network Fund

Scotland’s Heat Network Fund (SHNF) provides grant funding for the construction, expansion and decarbonisation of heat networks. For capital ready projects, grant support may be offered for a project’s funding gap, up to a maximum of 50% of the total eligible capital costs.

To date, Scotland’s Heat Network Fund has awarded £6,727,389 to four heat network projects in Scotland. Of these, three are local authority-led heat networks, receiving a combined £6,339,315. The other is a housing association which received £388,074 in SHNF funding.

In the last quarter, the Advanced Manufacturing Innovation District Scotland (AMIDS) heat network project has been commissioned which received £3.1 million in Scottish Government funding through the Low Carbon Infrastructure Transition Programme (LCITP). This is a fifth generation heat network led by Renfrewshire Council which uses waste heat from a nearby wastewater treatment centre with a heat pump system to provide heat to the AMIDS development.

In addition, the Millerhill District Heating Project (recipient of over £7 million LCITP funding) broke ground during the last quarter with the first pipework being installed in June 2023. This project is a joint venture between Midlothian Council and Vattenfall to commission a heat network to provide heat from the Millerhill Energy from Waste site to the large Shawfair new-build housing development. A press release providing more detail on the project’s construction can be found online: Vattenfall and Midlothian Council install first pipes in Scotland to supply Shawfair Town with low-carbon heating – Vattenfall.

For questions relating to the projects summarised in this document or fund enquiries, please direct these to HeatNetworkFund@gov.scot or HeatNetworkSupport@gov.scot.