Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: January 31, 2024

Purpose: Request Cabinet to approve the future options of the District Heat Network (DHN)

Content: Exempt Paragraph 3 Information relating to financial and business affairs of any particular person (including the Authority holding that information) RESOLVED That the Cabinet: a)         notes the finding of the Town Centre District Heat Network Phase 2 Outline Business Case as set out in section 4 of report HPS/39. b)         approves to undertake an options appraisal to assess the appropriate role for the Council in progressing the DHN phase 2 and that a further report be brought back to Cabinet regarding this matter. c)         subject to the options appraisal, agrees to submit an application to the Green Heat Network Fund for funding to support commercialisation and progression to construction. d)         notes the allocation of £50,000 to progress the options appraisal and application to the Green Heat Network Fund. Reasons for the Recommendations The Feasibility Study and Detailed Project Development for the phase 2 expansion of the town centre DHN indicate that the network is commercially viable (assuming a successful Green Heat Network Fund application) and electrification of the heat source can be achieved, thereby significantly reducing carbon emissions relative to the current phase 1 gas boilers and combined heat and power unit. The recommendations will enable the project to proceed to the commercialisation stage and in particular permit; (i)      Consideration of commercial options which enable progression of the DHN phase 2 expansion within the context of the Council’s Medium Term Financial Strategy while supporting the wider climate emergency pledge and net zero ambitions. (ii)      Submission of a funding application to the Green Heat Network Fund to support commercialisation and construction costs for the DHN Phase 2