A new deal announced will capture waste heat from London Underground tunnels and an electrical substation to help warm homes and cut energy bills.

The project, the first of its kind in Europe, is a partnership between Islington Council, the Mayor of London Boris Johnson, UK Power Networks and Transport for London.

The scheme will be run through Islington Council's innovative Bunhill Heat and Power heat network, which already supplies more than 700 homes in Islington with greener heating and is set to reduce the costs of heating for local people.

Under the new project, the network will be expanded to capture and utilise two local sources of waste heat, one from a London Underground ventilation shaft and the other from a sub-station owned and operated by UK Power Networks. The expansion will also see at least a further 500 homes connected to Islington's heat network.

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London Underground generates large amounts of heat, which will be captured from a nearby Northern Line vent and piped into the heat network which warms local homes.

Matthew Pencharz, the Mayor of London's Senior Adviser on Environment and Energy, said: "We need to do everything possible to create a more secure, cost-effective and sustainable heat and power supply for London. By supporting locally sourced energy and heat networks which can reduce bills and lower carbon emissions, we can not only save money but also drive innovation, jobs and growth in this burgeoning sector."

Councillor Richard Watts, Leader of the Council, said: "The expanded Bunhill Heat Network will cut energy bills for hundreds more local people. With energy prices going up and up, it's vital we do what we can to cut bills. It's all part of the Council's work to help people manage the rising cost of living. Last winter was one of the coldest for decades and record energy prices meant many families on fixed incomes spent it in misery, unsure whether to heat or eat."

(CD/JP)