27th May 2026

Atherstone Heat Network Secures £2.2m From UK Government

The Atherstone heat network in North Warwickshire has been awarded £2.2m through the latest round of the UK Government’s Green Heat Network Fund (GHNF), supporting the delivery of a low-carbon energy system for a new 1,700-home residential development and existing commercial buildings.


The project will take waste heat from the nearby Baddesley Energy-from-Waste facility, and transport it to the new development, bringing more stability to energy prices as well as reducing carbon emissions, with Baddesley owner, GREN helping secure the original funding.

We look forward to commencing work on the proposed heat network in Atherstone, delivering a low-carbon, resilient source of heating for new homes and local buildings by capturing heat from black bin waste that would otherwise go unused. This project is about future-proofing the town’s energy infrastructure while creating jobs and long-term benefits for the community.

Scott Lutton, Operations Director, Vital Energi

Valued at more than £22.5 million, the heat network is a strategic infrastructure project, with resilience provided through backup electric boilers if required during peak times.

In addition to the residential development, Aldi’s national headquarters is set to be connected during phase one, with further connections in development, ensuring the network can expand to serve the wider community.

The conflict in the Middle East has shown once again why we must get off the fossil fuel rollercoaster and onto clean, homegrown power we control. Heat networks will play a crucial role in that shift, lowering bills for whole communities while strengthening our energy security. That’s why we’re upgrading old and inefficient systems and investing in modern, low-cost networks fit for the future.

Martin McCluskey, Minister for Energy Consumers
Baddesley Efw Facility

Image: Baddersley Energy-from-Waste facility which will power the new Atherstone heat network

Construction of the network is set to begin in Spring 2027, with ‘heat on’ expected later in 2028. The project will create a mixture of 120 local and national jobs.

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