Hemiko lined up to deliver next phase of Leeds heat network expansion
The council is set to approve the appointment of its delivery and funding partner for the next phase of the low-carbon heat network in the city centre, adding to the city’s district heating ambitions.
The project will build on the success of the existing Leeds PIPES network and will initially focus on the South Bank area, supported by £23.5m of government capital grant funding.
Unlike the earlier Leeds PIPES scheme, the new network will be delivered through a different commercial model, with the council acting as an enabling authority rather than investing directly.
Under the arrangement, Hemiko will finance, develop, own, operate and maintain the network.
The council will enter into a joint venture with the company, retaining influence over key areas including the pace of network expansion, carbon performance, pricing and customer standards.
The approval of the appointment next week is to allow for a development agreement that will permit Hemiko to undertake the preparatory work needed ahead of construction.
Detailed proposals are expected to be submitted to the council later this year through an approval gateway, with a long-term shareholders’ agreement to follow if the scheme meets the authority’s requirements.
The first phase of the network could connect 28 residential and commercial buildings in South Bank, providing low-carbon heating to up to 8,000 residents and other customers while also creating new jobs and training opportunities.
Hemiko has also committed to financial contributions and measures aimed at supporting households at risk of fuel poverty.
The new scheme follows the continued growth of the Leeds PIPES network, which has attracted around £70m of total investment and now includes roughly 30km of pipework.
Developed in partnership with Vital Energi, the system currently serves more than 4,100 homes across 38 residential blocks, including over 2,000 council flats, alongside 30 public and commercial buildings, including Leeds Playhouse, Quarry House, St James’ Hospital, and Leeds Town Hall.
During 2024/25 the network delivered more than 32,000MWh of heat and is estimated to have saved more than 7,000 tonnes of carbon in 2025 alone.
