Sunderland set to heat up with energy deal

A North East energy partnership is set to deliver a major infrastructure boost to Sunderland city centre.

1Energy and Sunderland City Council have agreed a £67 million investment that will prove “transformative” to the city’s heating network and support its wider regeneration plans. 

Bosses say the partnership will create a large-scale district heat network, distributing locally generated, low-carbon energy to commercial and public buildings through insulated underground pipes. 

They add the investment could rise to around £128 million as the network expands to serve more of the city.

Jeremy Bungey, executive director of 1Energy, said: “We are proud to partner with Sunderland City Council to deliver a truly transformative energy network for the city. 

“This project is an excellent example of the public and private sectors working together to deliver benefits to businesses, public institutions, and residents.

“Heat networks deliver the lowest customer bills for low carbon heat, speed up the improvement of air quality, and have a demonstrated impact on health outcomes.

“Our ambition is to invest over £100 million in Sunderland, creating local jobs, stimulating further investment, and demonstrating how sustainable infrastructure can future-proof cities for generations to come.”

The project will initially support buildings within a couple of kilometres of the city centre, enabling them to switch to a local, sustainable heat source and reduce reliance on traditional systems such as gas boilers. 

A new energy centre in Deptford will house innovative technology to generate heat, with a proposed data centre on the same site supplying waste heat into the system.

The programme will be delivered in phases over five years and could ultimately serve residential areas including Millfield, Bishopwearmouth, Ashbrooke, Monkwearmouth and parts of Roker, Fulwell and the East End. 

Discussions are also underway with major organisations on potential connections, including the Royal Hospital, City Hall and the University of Sunderland’s campuses.

Councillor Lindsey Leonard, portfolio holder for environment, transport and net zero at Sunderland City Council, added: “This is a significant announcement and another major investment which is set to benefit Sunderland for generations to come. 

“By delivering improvements and advancements to our core energy infrastructure now, we can keep delivering our vision and driving forward progress on an ambitious scale.  

“This partnership is trailblazing – other local authorities are already exploring how they can develop similar partnerships to underpin energy security and localise production and supply.

“The new heat network will underpin any further regeneration too, enabling the city centre and surrounding areas to have locally sourced heating and a high degree of self-sufficiency. 

“We’re taking huge strides forward in relation to working and living smarter, as well as delivering on our low carbon commitments creating green economy jobs and opportunities, and by partnering with 1Energy, who are experts in their field, we can continue to transform and reposition Sunderland as an innovative and forward-thinking and sustainable city and a place where people want to live and organisations want to locate, invest and do business.

“This is very exciting news, and we will be engaging fully with businesses and residents over the next few months to share more details about what it means, the benefits of connecting to a heat network as well as our delivery plans and timescales. 

“We’re a city on the up in every way possible and it’s great to see.”

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