A new £1 billion low-carbon infrastructure project has been launched in Westminster.

Plans for the project sees the creation of a large heat network that would take waste heat from innovative sources such as the London Underground, the Thames and the sewer network and use it to warm buildings in the city.

This includes heating landmark buildings such as the Houses of Parliament and the National Gallery, alongside buildings owned by Westminster City Council and the Government.  

Heat will be distributed via a network of underground, insulated pipes filled with hot water. The zone will stretch from around Victoria Station, up to Temple Underground Station near the Strand, bounded by St James' Park.  

The ability to harness waste heat from within the local area and make use of it means the heat network is low carbon, efficient and resilient, and will not rely on imported fuel.  

Over time, this significant new investment is expected to save 75,000 tonnes of CO2 every year, which is equivalent to removing 40,000 cars from the road, create 500 jobs, improve local air quality by reducing nitrogen oxides emissions by 99%, and create 100 opportunities for UK businesses.  

The South Westminster Area Network (SWAN) was brought to life by the Department for Energy Security and Net Zero, and Westminster City Council.

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To deliver the network, they have brought in the SWAN Partnership, a joint venture between Hemiko and Vital Energi, two of the leading heat networks developers in the UK, who were appointed last month.

London Heritage Quarter and AECOM have also been key partners, supporting the network's growth. 

The SWAN Partnership will be funding, building and operating the heat network.

They plan to invest £100m within 3 years, £500m within 10 years, and £1bn by 2050 into what will become one of the UK's biggest heat networks.

Toby Heysham, CEO of Hemiko and spokesperson for SWAN, said: "Using heat from the iconic River Thames and London Underground to heat some of the capital's most famous buildings is a true story of pro-growth, circular economy in London.  

"Heat networks are the next big utility in the UK and we are investing £1bn over the next 6 years into networks that will allow local people and businesses to make use of locally wasted heat.

"We strive to embed ourselves in the local community, understanding the pressures and opportunities in the area, and figuring out how we can help, such as bringing high-quality green jobs and supply chain opportunities. 

"This network will be the flagship network in the UK, the first new zonal scale network in a market that offers an investment potential the size of the UK offshore wind industry. Steps like this show that the UK heat networks market is open for business."

Nick Gosling, Chief Strategy Officer of Vital Energi and spokesperson for SWAN, added: "Heat networks are the most cost-effective way to decarbonise our densely populated cities. The Government's heat network zoning regulations, introduced last year as part of the Energy Act, have now created the right market conditions for private sector investment.   

"By combining Hemiko's investment capabilities with Vital Energi's comprehensive expertise in designing, building, operating and owning energy infrastructure, the SWAN Partnership will deliver the first zonal scale heat network and demonstrate a model that other towns and cities will seek to replicate."

Businesses are being encouraged to register their interest in joining the network, by emailing [email protected]. Construction of SWAN is due to start in 2026.