Decision details

To inject significant capital (over £250,000) to enable the network to be built

The Board considered the report of the Director of Environment and Housing which outlined the benefits of implementing the first phase of the district heating network, which will deliver heat from the Recycling and Energy Recovery Facility (RERF) to the city centre and to council owned multi-storey blocks in the Lincoln Green, Saxton Gardens and Ebor Gardens areas of the city.

A map of the site was included at appendix 2 of the submitted report and the Board had received an updated version of exempt Appendix 1 prior to the meeting.

The RERF, currently being constructed at Cross Green, was designed to generate enough electricity to power over 22,000 homes. The report outlined the opportunity to harness the heat produced whilst processing the waste at the RERF and develop a district heating network (DHN). A DHN would provide the city with an infrastructure that will support the sustainable growth of Leeds, support the city’s ambitions to significantly reduce carbon emissions, provide greater energy security for the city whilst also helping those in fuel poverty. Additionally, a DHN would hold the potential to be expanded to deliver low carbon heat to additional sites across the city.

The report noted that the investment in a DHN would be cost neutral to the Council, with the potential to provide a surplus which could allow further investment in the network across the city, achieving greater carbon reductions as well as allowing the Council to further support residents in fuel poverty.

In response to issues raised by Members regarding the rapidly changing economics of the energy market, officers undertook to provide those Members with a detailed briefing on this and the wider business case for the proposals.

Following the consideration of the revised Appendix 1 to the submitted report, designated as exempt from publication under the provisions of Access to Information Procedure Rule 10.4 (3), which was considered in private at the conclusion of the meeting it was

RESOLVED

a)  That approval be given for the injection of £21 million into the Capital programme to deliver the District Heating Network programme to be funded through £14 million of borrowing that is supported by revenue income streams that are generated by the investment and £7 million grant subject to a successful bid to the LEP;

b)  That the necessary authority be provided to procure the district heating network;

c)  That the necessary authority be delegated to the Director of Environment and Housing to vary the Residual Waste PFI contract and to enter into the necessary ancillary contractual arrangements with prospective partners/heat customers.

d)  That a further report be presented in the Autumn 2016 when the business case has been finalised to allow Executive Board to provide authority to spend and to authorise contract award for construction and operation of the district heating network.

Statutory planning consultation covering the entire route (planning notices placed on lamp posts and 2 ward member events)

Ward members, local businesses, statutory undertakers, key landowners, Executive Member for Regeneration, Transport and Planning