Derby is set to benefit from a clean heating network, through a £100 million investment from 1Energy, the UK’s leading low-carbon heat network developer. The project will deliver a city-scale heat network using surplus heat from local industry to supply affordable, low-carbon heating across the city.
Backed by an additional £23 million in government funding, the Derby Energy Network is designed to reduce the city’s reliance on gas, cutting gas demand by around 7%, slashing air pollution from buildings by 86% and lowering carbon emissions by up to 77%.
The network will use underground hot water pipes and water source heat pumps to supply heat to major institutions including Rolls-Royce, the NHS, the University of Derby and Derby City Council, all without cost to local residents. Construction is expected to begin in 2026.
The project will also shield Derby’s businesses and public services from energy price volatility by reducing dependence on gas-fired heating. By repurposing waste heat from businesses like SmartParc, the initiative enhances Derby’s leadership in the circular economy and low-carbon innovation.
1Energy has indicated that its total investment could rise to over £140 million as the network expands to provide low-carbon heat to additional businesses and eventually homes.
The initiative is expected to create new skilled jobs and apprenticeships, further supporting the city’s economic future while dramatically improving air quality and cutting carbon emissions from buildings.
Andrew Wettern, CEO of 1Energy, said: ‘Derby has long led the world in terms of innovation, from water networks to defence. We are delighted to bring long-term investment to the city and build on its rich industrial heritage, enabling leading businesses to play a key role in delivering a new utility model.
‘Home to world-renowned innovators, Derby is uniquely placed to lead the transition to a more secure energy future. Alongside transforming the city’s energy infrastructure, the Derby Energy Network will give businesses greater choice and long-term price certainty. All while unlocking economic, health and environmental benefits for the city, the region and the country. We are exciting to continue working with Derby’s trailblazers to develop the network.’
As well as helping the UK achieve its energy security goals, the network will play a vital role in reducing air pollution, improving public health. It is projected to save around 20 tonnes of air pollutants that can cause respiratory problems – equivalent to taking 16,000 cars off the road for a year – by cutting pollutants from connected buildings by around 86%. The network also expects to reduce carbon emissions by 19,200 tonnes through slashing emissions from buildings by up to 77%.
Baggy Shanker, Member of Parliament for Derby South, said: “The Derby Energy Network represents a huge opportunity for our city to deliver another cutting-edge project, continuing our long-standing leadership on innovation. By combining private capital and public investment, it will bring hundreds of millions of pounds into Derby. I see it playing a key role in boosting economic growth.’
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