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Government backs major London heat network as £21m grant funding awarded

More details of the scheme announced to the public

Joint release from the SWAN Partnership, in association with Westminster City Council, the Department for Energy Security and Net Zero, and London Heritage Quarter.

Thursday 15 May 2025 - Today, the Department for Energy Security and Net Zero has awarded £21m to the South Westminster Area Network (SWAN). This major infrastructure project is set to slash carbon emissions and improve air quality in Westminster. The scheme will also create local jobs and business opportunities.

SWAN, which will drive £1bn investment into the capital by 2050, is progressing, with construction planned to start next year. This investment will drive growth across Westminster and create a wave of high-quality jobs in the local area.

Today, developers of the scheme, the SWAN Partnership, have provided a first look at what the scheme will look like.

SWAN will develop out from two centres, one around the Strand, and one around Millbank and St James' Park. Buildings in these areas can connect to the heat network from 2028.

To accelerate development of the scheme since they took on the role of developer in September 2024, the SWAN Partnership has engaged over 170 buildings in the Westminster area. Most of these buildings are now working through the process to get planned into and connected to the network.

Several landmark buildings are supportive of the growth of the network and looking at connection, including Somerset House and the London Transport Museum. These buildings have set ambitious plans for decarbonisation which they will put into action. By working together and with the SWAN team, organisations like this are making the heat network a reality, helping to save carbon, improve air quality and drive growth into Westminster.

Mete Coban, Deputy Mayor of London for Environment and Energy, said: “It is great to see some of central London's most well-known buildings taking this step on their decarbonisation journey. Heat networks have an important role to play in helping London achieve net zero carbon by 2030 as we continue working to build a better, greener London for everyone.”

The intended heat source for the first phase of the network will be natural heat from the River Thames. A water source heat pump would recover energy from the river to generate heat for the network. The heat pump then uses electricity to upgrade the temperature of that heat to around 80oC. For the buildings in the area, this is a big benefit, because many of their systems already operate at around 80oC meaning that the swap to low carbon heat is easier.

The team behind SWAN has identified and worked up a number of heat source options which will be brought forward over time to allow the network to expand. This includes looking at other waste heat sources such as heat from the tube and the sewer. Over time the network will expand to serve the whole zone, including, eventually, some individual homes.

 The £21m grant funding announcement by DESNZ will support the development and construction of the heat network, helping make the network more affordable for customers. Funding is provided by the Green Heat Network Fund which is administered by Triple Point Heat Networks Investment Management.

Buildings within or near the area are being encouraged to join the network by emailing SWAN@hemiko.com to request an Indicative Connection Offer.

Westminster City Council Leader, Adam Hug, said:

“SWAN has the potential to support decarbonisation of historic buildings in central London, providing some of Westminster’s most recognisable landmarks with clean heat. This will help us to meet the target of becoming a net zero carbon city by 2040 and achieving World Health Organisation guidelines for air quality.”

 Minister for Energy Consumers, Miatta Fahnbulleh said: 

“Heat networks will play an important role in our mission for clean power by 2030, helping us to achieve energy independence and lower bills.  

 “That is why this government is backing inventive projects, such as using heat generated by sewers or the River Thames to provide heating to connected businesses and homes, through the Green Heat Network Fund.” 

 Toby Heysham, Director, SWAN, said:

"Westminster is showing a voracious appetite for clean, decentralised heating. We find organisations who are committed to decarbonising, reducing air pollution, and doing this in a way that is sensitive to the heritage of the area. Using the Thames as a heat source allows us to invest in infrastructure that provides buildings access to the locally wasted heat resource, without individual buildings having to invest in complicated, visually disruptive solutions to decarbonise their heating."

 Jonathan Reekie, Director of Somerset House Trust, said:

"Somerset House Trust is committed to reducing its carbon footprint and demonstrating that heritage buildings can be sustainable when equipped with the right technologies. SWAN aligns perfectly with this vision by providing a low-carbon heating solution where more conventional options are limited."

 Nick Gosling, Director, SWAN, said:

“Low carbon heat networks will be essential infrastructure to decarbonise heat in dense urban areas, and SWAN represents an ideal opportunity to show case this at scale.  Our teams are actively exploring a range of low carbon heat generation technologies and energy centre locations, and we look forward to sharing more information on our trail blazing a solution as it becomes available.”

 Ruth Duston, CEO, London Heritage Quarter, said:

"We are delighted DESNZ has committed funding to support SWAN. This significant grant award in the scheme and the interest from landmark buildings across the district shows what can be achieved by working together to drive decarbonisation and innovation, in even the most traditional settings.”

Mete Coban, Deputy Mayor of London for Environment and Energy, said:

“It is great to see some of central London's most well-known buildings taking this step on their decarbonisation journey. Heat networks have an important role to play in helping London achieve net zero carbon by 2030 as we continue working to build a better, greener London for everyone.”

 ENDS

Media contacts

Chris Lee chris.lee@cavendishconsulting.com

Ruby Frost ruby.frost@cavendishconsulting.com

Joseff Reed joseff.reed@hemiko.com

 Available for interview

• Toby Heysham, CEO of Hemiko and spokesperson for SWAN Partnership

 About SWAN

SWAN (South Westminster Area Network) refers to new low carbon heat network infrastructure that will be built in the Westminster area. SWAN is one of the first heat network zones in the UK – an area targeted for accelerated investment into heat network infrastructure.

 About SWAN Partnership

The SWAN Partnership is a joint venture between two district heating market leaders, Hemiko and Vital Energi. The SWAN Partnership was selected by the Department for Energy Security and Net Zero (DESNZ) to deliver SWAN. The SWAN Partnership has come together to develop, invest in, construct and operate new district heating infrastructure in the Westminster area. Hemiko are currently developing scaled heat networks in Worthing, Greenwich and Old Oak & Park Royal, amongst others. Hemiko is one of the two joint venture partners delivering SWAN. Vital Energi are currently involved in other major city-centre heat networks, including in Leeds, Glasgow, Hull and Liverpool. Vital Energi is one of the two joint venture partners delivering SWAN.