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£24m shared by nine district heating networks

10 April 2017

Funding amounting to £24m by the Heat Networks Delivery Unit has been awarded to support the development of heat networks across the UK.

Climate Change and Industry minister Nick Hurd made the announcement, which is the first award from the £320m allocated to developing more district heating networks.

Awarded to nine authorities in the initial phase, an additional four were awarded sums of around £200,000 for the development of projects.

Of the nine local authorities sharing the £24m, awards ranged from just over £1m up to £5.73m, although the latter includes £3.5m as a repayable loan.

Funds from the award will cover between 20% and 60% of the cost of projects, with total capital expenditure ranging between £1.78m up to £13.58m for the various schemes.

The government says it expects the £320m will help to generate a further £2bn of investment from public and private investment.

Continuing growth of heat networks will have a number of implications for the FM sector, as facilities become included within schemes or develop their own.

Using the example of long-established heat networks in Scandinavia - as well as other parts of the UK - these have been identified as having the potential to reduce costs by over 30% and form part of the government's future energy strategy.

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