Newcastle City Council has teamed up with ENGIE to form a joint venture to develop and operate district energy schemes over a 40-year period.
The first district energy scheme to be delivered under the partnership is at the Newcastle Helix urban regeneration scheme – a high-profile, large scale, city-centre development by Newcastle City Council, Newcastle University and Legal & General.
The scheme is now under construction by ENGIE on behalf of the partnership.
Using a low carbon and cost-effective energy solution, applying natural gas-fired CHP (Combined Heat and Power), the energy system will provide, via a network of pipes, all businesses and homes on the landmark scheme with affordable heat.
Additionally, chilled water and a private wire electricity network will provide cooling and electricity to the non-residential customers.
It has been calculated that over the 40-year contract period, ENGIE’s energy centre will provide a carbon emission saving of 30,650 tonnes.
As well as delivering the energy centre, ENGIE will also provide the partnership with a 40-year contract covering the comprehensive provision of maintenance, lifecycle replacement and metering and billing services.
Accordingly, all homes and businesses on the development will benefit from a personalised provider based on their doorstep, who is committed to cost-savings and a low-carbon footprint
‘The partnership with Newcastle City Council is a paradigm of innovation and vision, so we are delighted to be on-board to help deliver sustainable energy solutions,’ said managing director for ENGIE’s Urban Energy business, Andrew Hart.
‘Our unrivalled expertise in district energy, especially alongside local authorities, coupled with our capabilities in construction, means we have the perfect platform to offer a wide-ranging service, with long-lasting benefits for those within this forward-thinking city.’
Newcastle City Council’s cabinet member for employment, Cllr Ged Bell added: ‘This unique venture is an incredibly exciting opportunity that will provide affordable and sustainable heating solutions, advantageous to both local businesses and residents.
‘It also supports our ambitions to be a green and sustainable city. So, it is very fitting that the first one of these schemes is on Newcastle Helix, one of the largest regeneration sites of its kind in the UK that is leading the way in smart and sustainable technologies.’