Purpose

Request Cabinet to approve the future options
of the District Heat Network (DHN)

Content

Exempt Paragraph 3
Information relating to financial and business affairs of any
particular person (including the Authority holding that
information)

RESOLVED

That the Cabinet:

a)         notes
the finding of the Town Centre District Heat Network Phase 2
Outline Business Case as set out in section 4 of report
HPS/39.

b)         approves
to undertake an options appraisal to assess the appropriate role
for the Council in progressing the DHN phase 2 and that a further
report be brought back to Cabinet regarding this matter.

c)         subject
to the options appraisal, agrees to submit an application to the
Green Heat Network Fund for funding to support commercialisation
and progression to construction.

d)         notes the
allocation of £50,000 to progress the options appraisal and
application to the Green Heat Network Fund.

Reasons for the Recommendations

The
Feasibility Study and Detailed Project Development for the phase 2
expansion of the town centre DHN indicate that the network is
commercially viable (assuming a successful Green Heat Network Fund
application) and electrification of the heat source can be
achieved, thereby significantly reducing carbon emissions relative
to the current phase 1 gas boilers and combined heat and power
unit.

The
recommendations will enable the project to proceed to the
commercialisation
stage and in particular permit;

(i)     
Consideration of commercial options which enable progression of the
DHN phase 2 expansion within the context of the Council’s
Medium Term Financial Strategy while supporting the wider climate
emergency pledge and net zero ambitions.

(ii)     
Submission of a funding application to the Green Heat Network Fund
to support commercialisation and construction
costs for the DHN Phase 2