1Energy and Sunderland City Council have signed an agreement that will unlock major investment to significantly improve and future-proof the area’s heating infrastructure, supporting new commercial developments, civic buildings, and ongoing regeneration projects.
The agreement represents the latest in a long line of significant investment announcements that are driving transformation of the city on a scale not seen in decades.
The £67m investment, which could potentially increase to circa £128m to support further expansion and regeneration, will create an extensive new district heat network where cleaner sustainable energy – locally generated heating, supported by an energy centre in the city centre – is distributed direct to public and commercial buildings, as well as potentially to private homes, through highly insulated underground pipelines.
It will enable specific commercial and residential properties, initially within a couple of kilometres of the city centre, to connect to a local energy supply, benefit from low carbon heating, and reduce the need for traditional energy heating solutions like gas boilers to be fitted, drastically cutting emissions. Having a local heat source will also support energy security and resilience, creating jobs for local people and suppliers as the system is rolled out.
Heat will be generated using innovative, sustainable technology at an energy centre located in Deptford. It is intended that a small data centre will also be located alongside, offering a supply of waste heat which is incorporated into the network.
The multi-million-pound investment project will benefit both private and public sector buildings and discussions are ongoing exploring the role it might play in heating the Royal Hospital, City Hall, the University’s City and St Peter’s campuses, and other city centre buildings.
Work will be rolled out in phases over the next 5 years and it is envisaged that homes in residential areas including Deptford, Millfield, Bishopwearmouth, Thornhill, Ashbrooke, Monkwearmouth and parts of Roker, Fulwell and the East End might also benefit from the heat network in years to come.
Portfolio Holder for Environment, Transport and Net Zero, Councillor Lindsey Leonard, commented: “This is a significant announcement and another major investment which is set to benefit Sunderland for generations to come. By delivering improvements and advancements to our core energy infrastructure now, we can keep delivering our vision and driving forward progress on an ambitious scale. This partnership is trailblazing – other local authorities are already exploring how they can develop similar partnerships to underpin energy security and localise production and supply.
“The new heat network will underpin any further regeneration too, enabling the city centre and surrounding areas to have locally sourced heating and a high degree of self-sufficiency. We’re taking huge strides forward in relation to working and living smarter, as well as delivering on our low carbon commitments creating green economy jobs and opportunities, and by partnering with 1Energy, who are experts in their field, we can continue to transform and reposition Sunderland as an innovative and forward-thinking and sustainable city and a place where people want to live and organisations want to locate, invest and do business.
“This is very exciting news, and we will be engaging fully with businesses and residents over the next few months to share more details about what it means, the benefits of connecting to a heat network as well as our delivery plans and timescales. We’re a city on the up in every way possible and it’s great to see.”
District heat networks like that announced by Sunderland City Council and 1Energy, provide community-led solutions and a sustainable circular economy to enable homes and businesses to obtain heating from a local source. By using local heat sources such as river and mine water, or data centre heat – from a centre proposed for Sunderland - which would otherwise go to waste, they are often the lowest cost sustainable option for urban areas once installed.
Jeremy Bungey, Executive Director of 1Energy added: “We are proud to partner with Sunderland City Council to deliver a truly transformative energy network for the city. This project is an excellent example of the public and private sectors working together to deliver benefits to businesses, public institutions, and residents.
“Heat networks deliver the lowest customer bills for low carbon heat, speed up the improvement of air quality, and have a demonstrated impact on health outcomes.
“Our ambition is to invest over £100 million in Sunderland, creating local jobs, stimulating further investment, and demonstrating how sustainable infrastructure can future-proof cities for generations to come."