Derby Energy Network Secures US$164 million for City-Wide Green Heating Project

1Energy has pledged GBP100 million of private capital for a city-wide heat network in Derby, UK.

This development comes after 1Energy secured GBP23 million (US$30 million) in funding from the UK Government to support the project. The Derby Energy Network, led by 1Energy, aims to reduce the city’s overall gas consumption by approximately 7%. The system will deliver low-carbon heat through underground hot water pipelines, utilizing water-source heat pumps to capture and reuse excess heat generated by local businesses. As the network expands, 1Energy’s total investment could exceed GBP140 million (US$187 million). Key institutions—including Derby City Council, the Royal Derby and Florence Nightingale Hospitals, the University of Derby, and Derby College—are collaborating with 1Energy to drive the project forward, with construction targeted to begin in 2026.

The Derby Energy Network is intended to strengthen the city’s energy resilience, lower operational costs for businesses, and shield them from volatile gas prices by replacing traditional gas boilers with a low-carbon heating alternative. The project is expected to eliminate approximately 20 tonnes of harmful air pollutants annually—equivalent to removing 16,000 cars from the roads for a year—by reducing emissions from participating buildings by roughly 86%. Additionally, the network aims to cut carbon emissions by around 19,200 tonnes, achieving up to a 77% reduction in building-related emissions.