Under the contract, Engie will design, build, operate and maintain a district energy scheme for the London Borough of Wandsworth. The initial phase is an energy centre with 3MW of generating capacity and the installation of 1.5km of insulated steel pipe.
This first phase will serve planned development near the new US Embassy and EcoWorld Ballymore’s Embassy Gardens.
It is envisaged that more than 3,500 homes and 75,000 m2 of commercial space in the Nine Elms area will be able to benefit from the new network.
The network is expected to be completed by April 2021. Council and contractor are in negotiations about expanding the network further into the Nine Elms area.
Wandsworth Council leader Ravi Govindia said: "This is another example of our commitment to delivering our green agenda for Wandsworth. As part of the council’s roadmap to becoming a carbon neutral organisation by 2030, we have worked hard to get the right agreements in place to bring low carbon energy supplies to residents and businesses in the Nine Elms area.
“Building sustainable energy provision into the area from scratch enables us to future-proof supplies and realise economies of scale for new developments. We're now keen to further expand the district energy network to supply more local developments so that the benefits are felt across the wider neighbourhood."
Andrew Hart, managing director Engie’s urban energy division, said: “This project will be hugely beneficial to Nine Elms and will support the sustainable regeneration the area has undergone in recent years. We are pleased to have reached an agreement that will allow Engie to deliver a new low carbon heat network, which will save residents and businesses money on their energy costs; while tackling climate change by reducing carbon emissions in the area.”