Veolia accelerates the decarbonization of municipal heat with energy from waste in London

Veolia, a leading decarbonizing energy company in Europe, is constructing a new district heating network in London in collaboration with Southwark Council. This network will utilize 75 GWh of low-carbon heat annually from Veolia’s SELCHP Energy Recovery Facility (ERF), which processes non-recyclable waste to generate electricity. It will supply nearly 5,000 homes, including social housing and schools, with heat.

Nearly half of the UK’s final energy consumption is for heating, primarily from fossil fuels. District heating networks, such as this one, offer a more efficient and sustainable alternative by using heat from waste-fed electricity generation to provide cleaner energy. Veolia will manage the network's design, construction, commissioning, and operation. Once operational, the project will deliver heat with around 60% renewable content due to the biogenic nature of the waste and is expected to reduce CO2 emissions by 14,000 tonnes annually compared to conventional gas or oil-based systems.

This initiative builds on the success of SELCHP's existing urban heating network, which has already saved 95,000 tonnes of CO2 over the past decade by providing low-carbon heat to 3,000 households.

Estelle Brachlianoff, CEO of Veolia, highlighted that local decarbonization initiatives like this help reduce reliance on fossil fuels, provide stable energy for communities, and address price volatility. She emphasized that Veolia’s unique expertise in both waste and energy positions the company as a leader in local decarbonized energy, a key component of their GreenUp strategy to meet decarbonization goals while ensuring affordable energy security.

The new network will deliver heat in the form of hot water through a 7 km insulated pipe system, with temperatures reaching up to 95°C, meeting the thermal demands of connected buildings. With an emission rate of just 0.026kg CO2/kWh, it will support Southwark’s progress towards its carbon reduction targets.

Earlier this year, Southwark Council became the first London authority to approve a Local Development Order (LDO) allowing the construction of this network. Cllr Helen Dennis, cabinet member for new homes and sustainable development, stated that this expansion of the low-carbon heat network is crucial for reducing reliance on fossil fuels, embracing cleaner energy sources, and ensuring affordable and reliable heating for the additional 3,000 council homes set to connect to the network.