Leeds is set to take another major step towards a greener future after senior councillors approved plans to progress the next phase of the city’s low-carbon heat network.
The expansion will build on the success of Leeds PIPES, with Hemiko appointed as the new delivery and funding partner for a city centre scheme that is expected to reach thousands more homes. The first phase is planned for the South Bank area and could connect 28 residential and commercial buildings, benefiting up to 8,000 residents and customers.
Leeds PIPES has already established itself as one of the city’s flagship environmental projects, with more than 30 kilometres of pipework installed across Leeds. The network connects over 4,100 homes, including more than 2,000 council flats, as well as 30 public and commercial buildings, supplying heat recovered from the city’s non-recyclable domestic waste facility.
The district heating system offers a more affordable and lower-carbon way of providing heat, and in 2025 alone Leeds PIPES saved more than 7,000 tonnes of carbon. The latest expansion is seen as another important move in the council’s wider ambition for Leeds to become the UK’s first net zero city, while also helping residents and businesses make more sustainable choices.
Under the new delivery model, the council will not make any direct financial investment in the next phase of the network. Instead, Hemiko will finance, own, develop, operate and maintain the scheme. Leeds City Council will, however, continue to have influence over important areas including customer standards, pricing and the pace of the network’s growth.
The authority has already secured £23.5 million in government capital grant funding for the new project, making it one of only a small number of councils in the UK to receive early support to procure a private sector partner for a heat network on this scale.
Councillor Mohammed Rafique, Leeds City Council’s executive member for climate, energy, environment and green space said:
“Leeds is taking significant steps in response to the climate emergency declared by the council in 2019, and we are working hard towards becoming the UK’s first net zero city.
“Part of this ambition is making homes easier and more affordable to heat, for example by helping residents, and businesses, move away from costly fossil-fuel powered heating systems, which also helps combat fuel poverty and reduce cold-related illness. Investment in alternative and local heat sources in the context of the current soaring energy prices will help make Leeds a more resilient and self-sustaining city.
“We’re pleased to be formally giving the go-ahead to Hemiko for the next phase of the district heat network, which has already been hugely successful through Leeds PIPES in providing lower carbon and more affordable heating to the city.”
Toby Heysham, CEO of Hemiko said:
“We are so pleased to be working with Leeds City Council on this network. This project is about capturing locally generated waste heat and providing access to that heat for local buildings. This is creating a cleaner, cheaper and more resilient way to heat the South Bank.
“With an initial investment of around £30 million, Hemiko will be delivering the infrastructure that enables this clean and affordable heat to be provided. This will support the council’s ambitions for a thriving city-centre hub for people to live and work. We want to work with the council to deliver more infrastructure and provide more of Leeds access to cheap, clean heat. Heat that comes from the town’s waste.
“Projects like this set the standard for what can be achieved when infrastructure, local ambition and strong partnerships come together with a shared purpose.”
At a meeting of the council’s executive board, Hemiko was given the green light to complete the technical, commercial, financial and legal work needed before construction can begin. Detailed proposals are expected to be submitted to the council in early 2027, with construction due to start soon afterwards if approval is granted.
Councillors said the expansion could deliver major carbon savings while bringing lower-cost heating to thousands more households, marking another significant step in Leeds’s journey towards a greener and more sustainable future.
