Liverpool seeks development partner for £65m heat network
“Liverpool is seizing a once‑in‑a‑generation opportunity to transform how our city is heated,” said Leader Cllr Liam Robinson.
To do that, the city council has begun a procurement exercise for a pilot heat network, which could then be expanded across the city centre. The work would be part of the Department for Energy Security and Net Zero’s Advanced Zoning Programme, which Liverpool City Council joined last year.
A heat network would distribute heat from once source to multiple buildings and is viewed as a cleaner, more efficient, and greener way to heat an area than through multiple gas boilers.
In Liverpool, the heat itself could come from the River Mersey or the wastewater treatment plant at Sandon dock. The city council estimated that a heat network could save up to 72,000 tonnes of carbon dioxide emissions every year.
The city is no stranger to heat networks either, with the Three Graces already part of Peel NRE subsidiary Ener-Vate’s Mersey Heat Network. This network includes Liverpool Waters and the offices there.
Regarding this new heat network, the development partner contract is valued at £64.8m including VAT and would run from October 2026 to the year after. Enquiries are due by 1 July with submissions having a deadline of 28 July. The city council will evaluate tenders on three criteria: technical skills, which will be weighted 52.5%; price, which is weighted 35%; and social value, which is weighted 12.5%
The city council has ambitions to award the contract on 14 October.
“Moving into procurement is a major milestone – it means turning ambition into delivery,” Robinson said.
- READ MORE: The heat network revolution
He added: “Through the Advance Zoning Project, we’ll capture wasted heat, cut carbon emissions, and create real jobs and skills for local people.
“By expanding low‑carbon heat networks across the city, AZP supports a just transition that improves affordability, strengthens energy security, and delivers lasting benefits for households most vulnerable to rising fuel costs,” Robinson continued.
“This isn’t just an infrastructure project; it’s about investing in Liverpool’s future and ensuring our communities feel the benefits for decades to come.”
Liverpool is not the only North West community that is part of the Advanced Zoning Programme. Trafford Council launched its procurement exercise for a partner for its proposed £1.4bn heat network in December, with an eye to announce the victor in May.
Great idea. As the situation in Ukraine hasn’t at all shown, single points of failure with dramatic consequences aren’t a problem at all. Not to mention that in most places this has been tried, the heat is absurdly expensive. Is there any chance at all that our nominally elected representatives could do the basic jobs they are actually meant to be doing?
By John
Plenty of hot air in the Council from schemes that never materialised, like Kings Dock, Williamson Square, Police HQ, Moorfields, Ten Streets, Chinatown, Anfield Plaza, and so on.
By Anonymous
Interesting project to watch, would be good to get more clarity on whether the proposed heat sources are really viable and able to meet demand.
By Paul the joiner
Everything wrong with local government and public sector procurement in one story.
By Ab
Liverpool’s heat network would pipe heat from a single source, such as the River Mersey or the Sandon Dock wastewater plant, across the city centre, with the council claiming annual carbon savings of up to 72,000 tonnes. It’s an impressive figure, though critics would note that ambitious numbers are common when selling a vision.
Public concern is growing over the level of control centralised systems give operators. Once connected, users could lose the ability to choose their heating method and become reliant on a monopoly provider for pricing, maintenance, and performance, often with limited recourse if costs rise or service declines.
While supporters emphasise environmental gains, you only have to point to mature heat networks elsewhere where consumers have faced high charges and no recognised exit routes. Stronger safeguards and clear protections must be demonstrated before Liverpool commits to a city‑wide system.
By Steve5839
This is because they have no money to do it themselves and are paying circa £12m to connect Cunard Building to the heat network to prove they are being ‘green’ – a building that is empty! Once again Liverpool City Council wasting money! Haven’t Peel being trying to flog the heat network for about 4 years? White elephant.
By Bob Dawson
Article in the telegraph today highlights the silliness of this endeavour, from the perspective of anyone who has to pay the bill. Our politicians are communists belonging to a different era.
“Half a million households supplied by heat networks could see their bills double as the Iran war causes energy prices to soar.
Families in blocks of flats or multiple buildings that are heated through a network are not shielded from market energy price spikes by the Ofgem price cap. They are also unable to change suppliers.”
By John