AIR SOURCE & GROUND SOURCE HEAT PUMPS
Heat networks and heat pumps go hand in hand
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In 2022, the UK government launched a new fund to incentivise heat networks to transition to low carbon heat sources to support decarbonisation. Matthew
Nudd, Carrier’s Decarbonisation & District Heating Manager UK&I, explores the fund’s purpose and objectives and shares one of the company’s recent heat network projects
oday, 2% of UK buildings are heated through a heat network. A heat network, or district heating, is a system of insulated pipes that takes heat generated from a central source and distributes it to a
number of buildings. Heat can be used from a variety of sources including large buildings such as hospitals and shopping centres, distilleries, water treatment plants and heat pumps. The UK government sees heat networks as vital to making net zero a reality in the UK. The Green Heat Network Fund (GNHF), a
three-year £288 million capital grant fund, was launched in 2022, building on the government’s Heat Networks Investment Project (HNIP), which has provided more than £165m for schemes across England and Wales since 2018. The fund aims to incentivise heat networks to transition to low carbon heat sources to help stimulate the increased deployment of low carbon technologies.
The Rt Hon Chris Skidmore MP’s net zero review calls for more support for heat networks – and for the GHNF to be extended to 2028. Funding supports the commercialisation and construction of new low and zero carbon heat networks, including the supply of cooling, retrofitting and expansion of existing heat networks. The goals of the programme are to:
• Achieve carbon savings and decrease in carbon intensity of heat supplied,
• Increase the total amount of low carbon heat utilisation in heat networks for both retrofitted and new heat networks,
• Contribute toward transformations across the investment landscape,
• Create a supply chain that will better prepare the heat networks for further decarbonisation.
How the fund works
Applications for the fund are available to the private, public, and non-profit sectors in England and disbursed over 11 quarterly funding rounds from 2022-2025, managed by the government’s delivery partner Triple Point Heat Networks. The first round of funding opened in March. The final submission date for inclusion in round five is 26th May 2023. Round six opens on 29th May 2023 and closes on 25th August 2023. Applications which meet a specific set of metrics are awarded funding on a competitive basis to maximise carbon savings, heat produced and value for money. However, even if an applicant meets all the eligibility criteria and scores well, it is not guaranteed an award of funding. For this reason, it is recommended to include a business case explaining how the project is going to be procured and financed.
The maximum allowable grant is up to 50% of the estimated costs of the project, with the GHNF awarding no more than 4.5p of grant per 1kWh of heat delivered to customers over the first 15 years of operation. There will be an upper limit of £1 million for commercialisation support. According to Triple Point Heat Networks, they have seen strong and clear growth of heat networks during the past 10 years, delivering on the heat and buildings strategy and the net zero strategy. It is clear that this growth rate needs to improve dramatically over the coming decade. Action is needed now if we are going to reach net zero in a timely and cost-effective manner.
Successful heat network project
E.ON’s ground-breaking district heating and cooling scheme in London is an example of how heat networks and heat pumps are making a significant difference to the UK’s race toward achieving its Net Zero target by 2050. The award-winning scheme is expected to provide 50% reductions in carbon emissions from heating and cooling customers connected to E.ON’s Square Mile network, contributing to the city’s net-zero emissions goals and enhancing air quality. Three Carrier AquaForce® 61XWHZE high- temperature heat pumps extract thermal energy from water pumped from deep boreholes in the aquifer 200 metres beneath the capital. They also harness waste heat from the existing combined heat and power plant that would otherwise be lost to atmosphere. The Carrier units upgrade the energy harvested to produce hot water at 80 °C. This will be used to provide up to 4MW of heating and 2.8MW of cooling to residential and business customers via a district-wide network of
22 BUILDING SERVICES & ENVIRONMENTAL ENGINEER JUNE 2023
highly insulated pipes, running underground for 10 kilometres.
The high temperatures required by the
project are normally very challenging to achieve. However, AquaForce® heat pumps are designed specifically to generate high- temperature hot water from relatively low-grade energy sources, while maintaining excellent energy efficiency. In addition, the way the units are multiplexed in the overall system ensures their capacity is fully utilised. “Tackling the environmental impact of heating, especially in densely populated areas, will be key to meeting the UK’s 2050 net zero targets, and with the heat pump and geothermal technology at Citigen we’re making a powerful statement of what can be done to reduce carbon usage on a large scale,” said Anthony Meanwell, Head of Decarbonisation, City Energy Solutions, E.ON. “This project required a huge team effort to develop the ideas, translate them into plans and finally make our project a reality on the ground. Completing the installation on time – and during Covid-19 lockdown – is testament to the ambition, creativity and commitment of all involved.”
How to apply for funding
Applicants can register an Expression of Interest before applying for funding. Each GNHF funding round is supported by events and workshops that provide applicants and supply chain partners with the opportunity to receive guidance on the application forms and ask questions.
To register interest in attending future GHNF events, complete the contact form at https://tp-
heatnetworks.org/contact/. To receive details of how to apply and receive an application pack, visit
https://tp-heatnetworks.org/apply/.
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