Hull underground heating system gets £27m loan

The Hull District Heat Network has been given a £27m loan from the government's National Wealth Fund

The government has announced it is giving a £27m loan to help fund a low-carbon underground heating system in Hull.

The Hull District Heat Network (HDHN) will provide heat, generated from waste, to buildings across the city centre.

The Hull City Council project is the second local authority heat network to be backed by Labour's National Wealth Fund, the first being Solihull's energy network.

Chancellor Rachel Reeves said the project would "strengthen the city's energy security".

Work started on the underground heat network last month. It is expected to last up to three years.

Pipes will carry hot water from a building in Trippett Street to buildings such as the Guildhall, Hull College and Hull New Theatre, as well as private developments such as Albion Square.

The scheme is funded by a £15m grant from the Green Heat Network Fund, £1.5m of Levelling Up funding and the £27m loan, which will be repaid through the operation of the network.

Emma Hardy, MP for Hull West and Haltemprice, said: "This is exactly the kind of practical action on the cost of living that Hull residents need.

"By backing Hull's district heat network, we're delivering a cheaper, cleaner alternative to other decarbonised heat solutions saving money for council buildings, schools, homes, and businesses across our city."

'Win for everyone'

The project is expected to cut 110,000 tonnes of carbon dioxide from entering the city's air over 40 years, according to a Hull City Council report.

Hardy said the HDHN represented a major step forward in Hull's goal to become carbon-neutral by 2030 and net zero by 2045.

"It's a win for everyone: it puts money back into local services, creates more green jobs, improves air quality and helps Hull lead the way in the green transition," she said.

Councillor Charles Quinn, portfolio for the environment, said: "We are proud to be driving this project forward, which will create investment and employment opportunities in Hull, really boosting the local economy."

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