Hull City Council has secured significant financial backing from the National Wealth Fund for a new district heat network that will deliver low-carbon energy to the city centre. The Hull District Heat Network (HDHN) represents a significant infrastructure investment aimed at reducing emissions, enhancing energy efficiency, and supporting the city’s net-zero goals.
The project will supply clean heat to council buildings, education facilities, development sites, and residential properties. It is designed to offer a cost-effective alternative to individual decarbonised heat solutions, reducing reliance on fossil fuels while supporting energy security in the region.
Funding includes a £27 million loan from the National Wealth Fund, a £15 million grant from the Green Heat Network Fund via Triple Point, and £1.5 million in support from the Levelling Up Partnership. The investment will be repaid through the network’s operation, creating a long-term income stream for the council.
An energy centre will house heat pumps that generate heat, which is then distributed through a network of underground pipes. Construction is expected to begin soon, following the receipt of planning approval. The project is expected to deliver an estimated 110,000 tonnes of carbon savings over 40 years.
Chancellor of the Exchequer, Rachel Reeves, said: “We are investing in Britain’s renewal, and this National Wealth Fund loan will heat buildings across Hull with clean energy, open up new jobs in green energy, and strengthen the city’s energy security. This is just one of billions of pounds worth of investments being announced today at our Regional Investment Summit, reversing decades of underinvestment and decline, slashing red tape to open up opportunities for businesses and kickstarting economic growth in every corner of the UK.”
Delivery partner Vital Energi will oversee construction, operation, and maintenance, and provide £3 million in community benefits, including local supply chain engagement, training opportunities, and education programmes. The company has previously delivered district heating projects in Leeds, Queens Quay, and Torry.
The Hull scheme is one of several regional investments supported by the National Wealth Fund, aligning with wider UK efforts to decarbonise building stock and stimulate growth in the green economy.
