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1Energy Milton Keynes heat project gets £18 million government funding to connect major NHS site

UK low-carbon heat network developer 1Energy has announced it has secured £17.6 million of UK government funding with the Milton Keynes University Hospital signing on as the anchor customer for its city-wide project.  
Heat network pipes and construction workers in Bradford. Courtesy of 1Energy.
Heat network pipes and construction workers in Bradford. Courtesy of 1Energy.

1Energy is also in negotiations with several other significant heat users across the city. The project represents over £78 million of private capital investment for Milton Keynes, which will be built at no cost to the local council or community. 

The Milton Keynes Energy Network will cut air pollution from the hospital’s main site and other buildings across the city by 80 percent, improving public health and reducing healthcare costs. In addition, the scheme will protect the country’s largest employer and other public services against sudden energy price hikes, with buildings being warmed by reliable, low-carbon heat rather than gas.

Repurposing waste heat from two nearby data centres and utilising a heat pump-powered energy centre to the north of the city, the project will supply businesses, hospitals, universities and homes with clean heating. It will do so via a 20 kilometre (12 mile) network of underground hot water pipes. The plan is to warm 74 buildings in this way, with the ability to generate enough heat to supply the equivalent of 20,000 homes per year. The scheme is scheduled to be completed by 2027.

The network enables the removal of individual gas boilers and eliminates reliance on fossil fuels. As such, it will make Britain less reliant on imported fossil fuels and thus, less vulnerable to sudden changes in international gas prices.

The scheme will also play a vital role in helping fulfil the net zero ambitions of both the city and the NHS. The announcement follows the launch of Milton Keynes City Council’s Heat Network Policy, a key part of their plan for the city to reach net zero by 2030. In response to the growing threat to public health posed by climate change, the NHS has committed to reaching net zero by 2045. The scheme is projected to save over 15,000 tonnes of carbon dioxide (CO2) per year, the equivalent of planting more than 238,000 trees, by reducing emissions from buildings by 75 percent. 1Energy is committed to developing a strategy to be net zero by 2030.

“Joining the Milton Keynes Energy Network is a major step forward in our journey to become a net zero hospital” said Tony Marsh, Director of Estates & Facilities, Milton Keynes University Hospital NHS Foundation Trust. “This partnership will allow us to cut carbon emissions significantly while ensuring our heating infrastructure is resilient and future ready. As a healthcare provider, we have a responsibility to protect both the health of our patients and the health of our planet, and this project enables us to do both. We’re proud to be working with 1Energy to deliver a greener, more sustainable future for Milton Keynes University Hospital.”

Heating remains one of the UK’s biggest challenges. It is responsible for over a fifth (21 percent) of air pollution, half of gas use – making it a key driver of the country’s fossil fuel dependence – and 37 percent of national CO2 emissions. Heat networks like the Milton Keynes Energy Network provide the lowest cost, simplest, fastest route to tackling this challenge on a city-wide scale.

The project will also help grow the local economy by creating and supporting over 100 new jobs and apprenticeships locally. In addition, it will deliver a wide range of local supply chain opportunities throughout its construction and operation.

Since its designation as a New Town in 1967, Milton Keynes has been a symbol of forward planning, innovation and ambition. Designed with green space, modern transport networks and adaptability at its core, the city has consistently led the way in shaping how communities can live, work and thrive sustainably.

The Milton Keynes Energy Network continues this tradition by becoming one of the country’s first cities to have a low-carbon heat network that utilises waste energy from data centres, the latest symbol of innovation and ambition. The project brings cutting-edge, resilient infrastructure to a city already known for its progressive vision.

“At 1Energy, our mission is to decarbonise heat — one of the toughest challenges in reaching net zero” said Jeremy Bungey, Executive Director of 1Energy, commenting on the news. “The Milton Keynes Energy Network is a vital step in that journey, delivering efficient, low-carbon heating infrastructure that cuts emissions, improves energy security and supports public services like the NHS. It’s also an example of how we can repurpose waste heat into community value, powering a cleaner, healthier and more sustainable future.”

For additional information:

1Energy

Milton Keynes University Hospital

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