Vital Energi and Hull City Council unveil £42m plan to transform city

Hull City Council is set to become a low-carbon leader after partnering with renewable energy provider Vital Energi to deliver a low-carbon heat network, driving economic growth, job creation, and building climate-resilient neighbourhoods.

The project will be delivered under a multi-year design, build, operate, and maintain contract, which will see Vital Energi construct a new energy centre at Trippett Street car park and install over 5km of district heating pipework during phase 1, across Hull city centre.

During phase 1 of the project, the network will supply low-carbon instant heat and hot water to residential tower blocks, council buildings, educational institutions, and private sector businesses. This solution is more cost-effective than alternative decarbonised heat solutions, such as Air Source Heat Pumps (ASHP).

Due to the modular nature of the project, there is significant potential for the network to expand in future phases, with opportunities for new connections across the city as demand for low carbon energy continues to grow.

The project is funded through a £15m grant from the Green Heat Network Fund, via Triple Point, £1.5m of Levelling Up Partnership funding, and a £27m loan from the National Wealth Fund, which will be repaid through the operation of the network, representing a major investment in Hull’s future.

In addition to this, the scheme will provide a return for the council over the lifetime of the project by providing affordable, clean energy to buildings, which will allow more money to be allocated to other services, whilst also reducing CO2 emissions by an estimated 110,000 tonnes over 40 years.

"We are proud to partner with Hull City Council on such a progressive project. The development of the Hull District Heat Network will provide low-carbon, reliable heat whilst driving economic growth through job creation and investment in education across the Hull area. With our expertise and existing presence in the city, we are well-positioned to deliver Hull’s ambitions.”

Andrew Wightman, Regional Director, Vital Energi

“The District Heat Network is an ambitious project that shows the councils commitment to providing clean, stable and sustainable heat for businesses, residents and public buildings around the city centre. There is already high demand for the reliable affordable heat the network will provide, and there is great scope for expansion on demand in the future. The Heat Network will create employment and investment opportunities in Hull, really boosting the local economy”

Cllr Charles Quinn, The Council’s Portfolio Holder for Environment

As part of Vital Energi’s long-standing commitment to social value, they will deliver £3m worth of community benefits, including utilising local supply chain, school and college workshops, site visits, work experience placements, training for educators, apprenticeships, and apprenticeship awareness sessions, voluntary organisation support, and skills development for Hull City Council’s internal workforce.

To deliver this project, Vital Energi will install insulated pipes throughout the city centre, while ensuring continuous access for businesses and residents and minimising disruption wherever possible.