ENGIE has entered into a new 40-year partnership to develop and operate district energy schemes in Newcastle.

Working in a Joint Venture with Newcastle City Council (NCC), ENGIE will first deliver the £20 million Newcastle Helix urban regeneration scheme.

The former Scottish & Newcastle Breweries site is being regenerated to create a major hub for scientific research and technology which will create over 450 homes and half a million square feet of university, laboratory and office space.

Using a low carbon and cost-effective energy solution, applying natural gas fired CHP (Combined Heat and Power), the energy system will provide all businesses and homes on the landmark scheme with affordable heat, via a network of pipes. Additionally, chilled water and a private wire electricity network will provide cooling and electricity to the non-residential customers.

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Under the contract ENGIE's services will also include design, build, operation and maintenance of district energy schemes. The company will also deliver comprehensive provision of maintenance, lifecycle replacement and metering and billing services.

Commenting on the agreement, Andrew Hart, Managing Director for ENGIE's Urban Energy business, said: "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. 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.

"This is an example of how the private and public sector can work in partnership to deliver their ambitious district energy investment plans aligned with the Government heat strategy."

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."

The energy centre is expected to be operational from August 2019.

(CM/MH)