Engie will design, build, operate and maintain district energy schemes in Newcastle as well as contribute to funding.
The first district energy scheme to be delivered under the partnership is at the Newcastle Helix urban regeneration scheme – a city-centre development on the former Scottish & Newcastle Breweries site being led by the council with Newcastle University and Legal & General.
This £20m combined heat and power plant is now under construction by Engie on behalf of the partnership and is expected to be operational from August 2019. Engie is also contracted to maintain it for 40 years.
Andrew Hart, managing director of Engie’s Urban Energy business, said: “Our unrivalled expertise in district energy, especially alongside local authorities, coupled with our capabilities in construction, means we have the perfect platform to offer a wide-ranging service, with long-lasting benefits for those within this forward-thinking city.
“This is an example of how the private and public sector can work in partnership to deliver their ambitious district energy investment plans aligned with the government heat strategy.”