Veolia unveils £1bn pipeline of low-carbon heat networks for the UK

FRENCH utilities giant Veolia is developing a £1bn (US$1.3bn) pipeline of low-carbon heat network projects it aims to deliver across the UK by 2030.

The programme forms part of the company’s new “Ecothermal Grid”, with schemes planned in Wiltshire, London, Bristol, Yorkshire and Cambridgeshire. Veolia says the initiative will require stronger regulatory support if the UK is to scale heat networks at pace.

Growing role for heat networks

Heat networks distribute hot water from a central source to homes and buildings via insulated pipes. While long used in blocks of flats, their rollout has expanded in recent years as an alternative to gas boilers, particularly as they can integrate energy from waste, biomass, biogas, heat pumps, CHP plants and fuel cells.

More than 14,000 heat networks now operate in the UK, supplying heat and hot water to around 480,000 people. Ofgem began phasing in regulation this year to introduce standards for billing, complaints and consumer protection. The government invested £338m between 2022/23 to 2024/25 into a broader Heat Network Transformation programme. It estimates that up to 18% of UK heat demand could be met by networks by 2050.

Veolia pipeline

Veolia has called for regulatory support from the government to drive investment into the sector, including updating to the UK Emissions Trading Scheme to incentivise energy-from-waste plants to supply local networks. It also argues that new and existing buildings should be “obligated” to connect to nearby heat networks to keep demand stable.

Veolia recently completed phase one of its Southwark 2.0 district heat network in south London, which supplies more than 2,500 homes – saving around 8,000 t/y of CO2. Phase two of will begin in March 2026 and is expected to extend supply to around 7,000 homes using heat recovered from Veolia’s energy-from-waste facilities.

Veolia CEO Estelle Brachlianoff said: “Veolia’s ambition is to be at the forefront of a new wave of heating networks across Europe and ultimately to become the number one player in urban heating in Europe.”

She added: “In order for this to happen, we need – across Europe and in the UK – funding mechanisms that provide certainty and stable regulatory frameworks.”