OPDC announces Hemiko as development and funding partner for innovative new Heat Network
Monday 31 March 2025 – The Mayor of London’s development corporation for Old Oak and Park Royal (OPDC) has today announced that Hemiko has been chosen as the development partner for its innovative new district heat network.
OPDC and Hemiko will work together in partnership to design, deliver, fund and operate the new low carbon heat network, which will draw waste heat from local data centres, providing low-cost, low carbon energy to over 9,000 new homes and businesses in the Old Oak and Park Royal area, as well as existing buildings including a major hospital. Using waste heat from data centre cooling systems in this way is a UK first that positions London at the forefront of the UK’s transition to a low carbon, circular economy, whilst driving the growth of the UK tech sector.
Hemiko is a leading heat network utility provider that develops, builds, funds and operates urban heat networks for commercial, residential and mixed-use developments across the UK, including the Greenwich Peninsula regeneration project in London and they are currently building a new network in Worthing.
The first phase of OPDC’s heat network is expected to deliver up to 95GWh of heat a year, the equivalent of boiling around 1 billion kettles. The network will expand over five phases between 2028 and 2040, serving the wider Old Oak and Park Royal regeneration area, London’s largest new development project, with plans to build up to 25,000 homes over the next two decades.
In November 2023, OPDC was awarded £36m from the Government’s Green Heat Network Fund and in October 2024, Old Oak and Park Royal was announced as one the UK’s first heat network zones - areas designated by the Government where heat networks will provide the lowest cost, low carbon heating option.
The Mayor of London’s Local Energy Accelerator (LEA) programme, which was co-funded by the Mayor and the European Regional Development Fund, and the Mayor’s Green Finance programme, have provided an additional £1.7m to fund the technical and commercialisation work to develop the commercial case for the network.
This will now be bolstered by Hemiko who will invest £63m in the first phases, growing to around £600m by 2040, boosting economic growth and creating local jobs in West London.
OPDC’s heat network will eventually serve London’s largest Opportunity Area, benefitting new and existing communities living and working in the new urban district being created at Old Oak and Park Royal. As well as many thousands of new and affordable homes, plans include around 3 million sq ft of new commercial, retail and leisure development, high-quality parks and green space, and community services and facilities, all within walking distance of the new HS2 station at Old Oak Common, where HS2, Elizabeth line and Great Western Main Line services will operate.
QUOTES
OPDC’s Chief Executive, David Lunts says:
“OPDC’s innovative new heat network is leading the way in developing greener and cheaper energy for thousands of residents in West London.
With heat network specialist Hemiko now confirmed as our delivery partner, we are excited to be working together to progress the design and delivery of our heat network and to delivering a cleaner, more sustainable energy supply for West Londoners.”
Mete Coban MBE, the Deputy Mayor of London for Environment and Energy, said:
“The green transition is one of the biggest economic opportunities of the 21st century.
“By capturing waste heat from data centres and using it to power heat networks, we’re not only cutting emissions but also driving down energy costs for Londoners and making our city’s infrastructure more resilient.
“The Mayor and I have backed this project from the start because we know that innovation like this - bringing together the public and private sectors - is exactly what we need to build a fairer and greener London for everyone.”
Toby Heysham, Chief Executive Officer at Hemiko says:
“We are so pleased to be investing in and delivering an innovative new heat network in partnership with OPDC. The heat network will enable the creation of low carbon, low pollution neighbourhoods in London. By taking surplus heat from local data centres, we don’t need to burn gas in the middle of a city to heat people’s homes, with the right infrastructure we can take local waste heat and offer it to local people, while offering local jobs at the same time.
There is enough surplus and wasted heat in London to heat the whole city - we just need heat networks to access it. With the announcement of OPDC’s heat network hot on the heels of the South Westminster Area Network (SWAN), London is leading the race to host this multi-billion-pound industry that will drive green growth in the UK."
Adam Shalapin, Vice President, Global Sustainability, Vantage says:
“At Vantage Data Centres, a leading global provider of hyperscale data centres, we believe in creating lasting, positive impacts within the communities where we operate, and that includes our two campuses in London.
By powering our data centres with renewable energy and supplying the surplus heat to this innovative district heating network, we are taking a holistic approach to resource efficiency and sustainability. We’re proud to collaborate with OPDC on a solution that goes beyond our own walls to showcase how our data centres can serve the needs of existing and future communities in a cost-effective way.”
Simon Hayman, Regional Director at Equans UK & Ireland, which is delivering critical support at Central Middlesex Hospital through sustainable FM services and energy expertise, said:
“Connecting the Central Middlesex Hospital to OPDC’s district heating network is a forward-thinking initiative that promotes sustainability, reduces emissions, and enhances energy efficiency, contributing to a healthier environment and a more resilient healthcare system.
This transition aligns with broader climate goals and supports the NHS's commitment to net zero by 2040 and is a strategic move towards achieving net zero emissions.”