District heat network plans move to procurement as net zero strategy gathers pace

Liverpool City Council is progressing to the next major phase of creating a district heat network through the Advance Zoning Project (AZP), as the formal procurement process has been launched.

This follows a successful Bidders Day event recently (pictured above), where potential partners from across the low carbon heat and infrastructure sectors engaged with the Council to learn more about the opportunity to help shape one of the UK’s most forward-looking heat network programmes.

AZP is part of a national initiative led by the Department for Energy Security and Net Zero (DESNZ) to accelerate the rollout of low-carbon heat networks across the UK.

Heat networks distribute heat (often waste heat) from a central source to multiple buildings, offering a cleaner, more efficient alternative to individual boilers. They are vital for reducing carbon emissions, improving air quality and energy security and providing a cost-effective route to decarbonisation for customers.

AZP brings together local authorities and private sector partners to design and deliver heat network zones before zoning legislation is fully adopted. The programme uses standardised governance and procurement models to streamline processes and reduce complexity for bidders.

Liverpool City Council Cabinet approved the development of AZP last year, when plans were first publicised about how advanced heat networks could transform the way buildings across the city are heated..

The intention is for a selected Zone Developer to build and operate heat networks across Liverpool, starting with a reference scheme and expanding across the city centre.

The Advance Zoning Programme is not just about infrastructure – it’s about creating lasting benefits for Liverpool’s communities:

• Local Jobs and Skills: The project will generate employment opportunities during construction and operation, with a focus on apprenticeships and training for local residents.
• Tackling Fuel Poverty: The AZP will provide support to Liverpool’s disadvantaged communities, helping to alleviate fuel poverty by reducing energy bills.
• Health and Wellbeing: Cleaner heating systems will improve air quality, reduce respiratory issues and contribute to healthier neighbourhoods.
• Community Investment: The project will prioritise local supply chains and reinvest in community initiatives, ensuring economic benefits stay within the region.
• Climate Action: By cutting carbon emissions, AZP supports Liverpool’s net-zero ambitions and creates a more sustainable future for everyone.

Liverpool City Council is committed to delivering a just transition to low-carbon heating, improving air quality, reducing fuel poverty, and supporting local jobs and investment.

For more information, email the Liverpool City Council Sustainability Team at mailto:liverpoolheatnetwork@liverpool.gov.uk

Cllr Liam Robinson, Leader of Liverpool City Council, said: “Liverpool is seizing a once‑in‑a‑generation opportunity to transform how our city is heated.

“Moving into procurement is a major milestone – it means turning ambition into delivery.

“District heat networks are becoming increasingly common and the way for areas of urban density to secure heat. The city’s Three Graces are currently being integrated into Mersey Heat – a network which serves the Liverpool Waters development and other landmark buildings along the waterfront, by using energy from the Leeds Liverpool canal.

“Through the Advance Zoning Project, we’ll capture wasted heat, cut carbon emissions, and create real jobs and skills for local people.

“By expanding low‑carbon heat networks across the city, AZP supports a just transition that improves affordability, strengthens energy security, and delivers lasting benefits for households most vulnerable to rising fuel costs.

“This isn’t just an infrastructure project; it’s about investing in Liverpool’s future and ensuring our communities feel the benefits for decades to come.”