Plymouth City Council has appointed Heat Networks Development Company No. 1 Limited to develop and operate heat networks serving the city's South Coast and Derriford areas under a two-stage contract worth £3.5bn.

The Development Partner will first design the network and guide it through a commercialisation approval gateway. If approved, it will move to delivery stage, which operates under an evergreen shareholders' agreement extending indefinitely. Plymouth City Council will retain a golden share in the special purpose vehicle used to deliver the scheme.

The heat networks will supply low-carbon heat from a significant waste source at South West Water Central Plant. Anchor customers include the University of Plymouth, Arts University Plymouth, Devon & Cornwall Police, National Marine Aquarium, Theatre Royal and Plymouth Community Homes, all seeking to meet Net Zero targets. The council has secured government Green Heat Network Fund grant to cover commercialisation and construction costs; the appointed partner will fund remaining development and delivery.

Plymouth South Coast and Derriford have been identified as suitable for low-carbon heat networks through the Department of Energy Security and Net Zero's heat network zoning pilot. Exclusive rights to develop networks in these areas remain subject to future Zoning Regulations outcomes.