Member Article

Gateshead businesses to benefit from novel energy project

Work will begin next week on an important energy project that will cut bills and carbon emissions for homes and businesses in Gateshead.

The first of its kind and scale in the North East, the new District Energy Scheme on Quarryfield Road in Gateshead, will allow heat and electricity to be generated locally and fed directly to public buildings, businesses and local homes.

The scheme is expected to help attract new businesses to the area, thanks to low energy prices and its green credentials. Local homes, businesses and public organisations will also benefit from lower energy bills and emissions, with the centre using the latest low-carbon technology.

Work on constructing the Centre, in the Baltic Business Quarter, will begin on Monday, 1st June at 11am. The small power station will deliver heat and power via a dedicated network stretching over 3km, from the south bank of the Tyne into central Gateshead. The initial stage of the project will deliver enough energy to power the equivalent of 5,000 homes.

Gateshead Council, which is behind the ambitious project, has aspirations to see many other areas of the borough connected to similar schemes in the future. The Energy Centre and network will be able to supply the energy needs of all the future development planned for the town centre, including Gateshead Quays, Baltic Business Quarter and the new Exemplar Neighbourhood. This is an area between the Felling by-pass and the former Chandless estate, where up to 1,000 new homes are planned.

Construction of the network of heating pipes and power cables is expected to begin by the summer. The Energy Centre will start producing heat and power from April 2016, with each building then connected between April and June 2016.

The Energy Centre will use two 2MW combined heat and power plants to generate electricity and the waste heat from the engines will then be used to provide hot water to the building. This method is almost twice as efficient as conventional power stations, where waste heat is lost to the atmosphere.

The first buildings lined up to take advantage of the energy centre will include Sage Gateshead, Gateshead Civic Centre, Gateshead College, BALTIC and some of the residential blocks in central Gateshead, managed by The Gateshead Housing Company.

As well as ensuring homes and businesses see reduced energy bills, the project is expected to be fully self-financing. Construction and operating costs will be recouped over the life of the project by energy sales.

Leader of Gateshead Council, Mick Henry, said: “This is an innovative project that will provide a real boost for households and businesses in the area while reducing emissions too. It’s a real win-win.

“Being able to switch on a light or turn on the hot tap and being able to see where that energy was created will be a revolutionary concept to many. But it’s hard to argue with the logic and the figures here. This centre will be twice as efficient as a conventional power station and linked straight to homes, public buildings and businesses.

“It will give this area a real cutting edge and I really hope that we can do the same in neighbourhoods right across Gateshead in years to come.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →