Green Heat Network Fund: Driving Low Carbon Heat Networks (UK)

The GHNF focuses on the commercialisation and construction of new low-carbon heat networks, the retrofitting and expansion of existing networks, achieving carbon savings and reductions in carbon intensity, increasing the total utilisation of low carbon heat, and contributing towards market transformations across the investment landscape and supply chain to prepare the sector for further decarbonisation.

Launched in the spring of 2022, the GHNF initially provided £288 million in funding, with additional support made available to organisations in the public, private, and third sectors. The fund offers grant-only support, disbursed over a series of funding rounds from the financial years 2022/23 through to 2029/30. It builds on the progress made by the Heat Networks Investment Project (HNIP) and forms a core part of the Government’s Heat Network Transformation Programme (HNTP).

By providing targeted commercialisation and construction funding, the GHNF addresses key barriers to decarbonising heat networks. Greater deployment of low-carbon technology helps reduce upfront capital costs through standardisation and supply chain efficiencies, lowers long-term operating costs, and develops the skills and knowledge required to operate these networks effectively.

The fund also aims to upscale the supply chain, enhance procurement processes, and increase competition within the sector, helping create a self-sustaining low-carbon heat network industry. These efforts are designed to prepare the industry for future carbon budgets in the late 2020s and support growth to meet the carbon budgets in the 2030s.

GHNF funding is available to organisations across England in the public, private, and third sectors, while individuals, households, and sole traders are not eligible to apply. Funding can be drawn down until the 2029/30 financial year, ensuring long-term support for the development of sustainable heat networks.

For more information, visit GOV.UK.