Seven Scottish communities to receive £1.5M in funding from Scottish government for district heating projects involving use of woodfuel, air source heat pumps

EDINBURGH, Scotland , October 23, 2013 (press release) – Energy Minister announces successful local bidders.

Today, Energy Minister Fergus Ewing announced that seven local communities throughout Scotland will benefit from £1.5 million of funding for district heating projects through the District Heating Loan Fund.

Seven projects from as far north as Wick to Lockerbie in the south have been awarded funding support. All the of projects will use renewable heat generated by woodfuel or air source heat pumps. Six of the projects provide affordable warmth to social housing or private homeowners, in off-gas grid areas, delivering significant savings on energy bills.

Mr Ewing said:

“District heating is an important means of achieving both carbon emission and fuel poverty targets as well as contributing to the development of a low-carbon economy and local economic regeneration.

“In May, I launched the Scottish Government District Heating Action Plan to set a clear roadmap for how we will support the growth of district heating networks throughout Scotland, and help reduce energy bills and carbon emissions.

“As we continue to move forward with our action plan the long term benefits and opportunities are plentiful. Job creation in the sector, inward investment from district heating manufacturers and the opportunities for existing businesses to be involved in the supply chain will all provide a welcome stimulus to local economies across Scotland

“The two largest projects are to receive £400,000 each - Ignis Wick for an extension to the Wick biomass district heating scheme and £400,000 to Craigie Estates, for an air source heat pump district heating scheme for affordable homes.

“Today, I am also happy to announce that the Heat Network Partnership is open for business. The website gives details of where projects can go to get support and also act as a hub of information for all those interested in learning about and adopting de-centralised energy.

“This is only possible because of the on-going work with partners to educate and inform communities and developers about the potentials and benefits district heating can bring. It also will help to deliver our overall vision of a largely decarbonised heat sector by 2050, with significant progress by 2030. The switch to district heating is already helping take thousands of households in places like Glasgow and Aberdeen out of fuel poverty.

“Back in May I visited the Commonwealth Games Athletes Village where a £10 million district heating energy system has been installed that will provide heating and hot water through underground pipes.

“The money invested will have a beneficial long term effect on driving down fuel poverty – a concern for too many households in an energy rich nation like Scotland.”

To support planning and develop heat projects the Scottish Government aims to produce a Scotland heat map by Spring 2014.
Notes to editors

The Scottish Government has set up the Heat Network Partnership (www.districtheatingscotland.com) to support the development of district heating in Scotland and accelerate uptake.

The Scottish Government recognises the need to provide information that can help plan for future heat needs across Scotland. The Scotland heat map is a database that brings together a significant amount of information on heat demand and heat supply. The Scotland heat map will be offered to every local authority in the country.

Success projects

Camaghael , Banavie, Fort William (Colin Clarke) - £145,000
Small woodfuel district heating system for 10 buildings including church manse and purpose built special needs building.

Wester Fintray, Kintore, Inverurie (John Rennie) - £60,000.
Small woodfuel district heating scheme for 3 households. Wood fuel will be sourced locally from the farm estate. It is estimated that the new system will save 50% on fuel bills.

Craigie Works, Dundee (Craigie Estates) – £400,000
Medium sized air source heat pump district heating project in the Dundee waterfront area. Phase 1 is the conversion of a listed warehouse to a block of 99 flats and Phase 2 is a further 75 new build properties, to be rented at affordable levels to tenants on medium to low incomes who will be given options to purchase properties after 5 years.

Strathallan Campus (HW Energy) – £200,000
Medium sized woodfuel district heating scheme for 11 buildings on an independent school estate. HW Energy, a biomass company based in Fort William, will install the system as an Energy Services Company. Fuel savings of at least 30% are projected.

Balgray Estate, Lockerbie (Michael Paterson) – £108,000
Small woodfuel district heating scheme for 3 households. It is proposed the new system will save around 30% on energy bills.

Foulis Estate, Evanton, Ross-shire (Finnian Munro) - £189,000
Medium sized woodfuel district heating scheme for 11 buildings (including 10 households and grain dryer). Excess heat from the system will be used to dry 600 tonnes of malting barley (it is estimated that the new system will save 38% on fuel bills)

Pulteneytown, Wick, Caithness (Ignis Wick Ltd) - £400,000
Second District Heating Loan Fund application for expansion and upgrade to the existing 3.5 MW biomass steam district heating scheme. 196 domestic customers, a local distillery, a care home and the local assembly rooms are already connected. The extension will connect a further 200 households and a local hotel.

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