Further details of London's biggest low carbon district heating system to provide cheap and clean energy to thousands of homes have been unveiled this week, with no works now scheduled to take place.

Under the proposed scheme the heat normally released into the environment from the waste to energy facility at the South East London Combined Heat and Power Plant (SELCHP) in Deptford would be recycled and piped directly to the boiler houses that serve almost 3,000 homes across seven estates in Southwark.

Southwark Council believes that as well as saving between 8,000 to 10,000 tonnes of carbon a year, the new system could also cut energy bills for leaseholders and council tenants and could even be extended to provide environmentally friendly heating and hot water to additional buildings in the area in future years.

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While the overall affordability of the scheme is yet to be agreed, the council and its waste and recycling partners Veolia Environmental Services have now agreed the scheme's proposed route in the borough.

If approved, pipes would be laid from the Selchp plant and then run along Silwood Street, across Rotherhithe New Road into and through the Abbeyfield Estate; along Raymouth Road; then through the Biscuit Factory site adjacent to the railway line and out onto Clements Road, terminating in the boiler house on Clements Road.

Properties on the Rouell Road, Keetons, Four Squares, Pedworth, Abbeyfield, Silverlock and Tissington estates would directly benefit from the project.

The council said a previous proposed route which took in part of Southwark Park had now been dropped after listening to the concerns of local people.

Southwark will not be required to make any up-front financial contribution to the project but would instead sign a long term contract to buy the heat at a guaranteed lower price than can be secured from the conventional energy market.

Subject to further negotiations the council hopes the scheme will be operational by 2013.

(CD/GK)