Mayor’s development corporation buys site for energy centre that will heat 10,000 homes

The acquisition follows an award of £36m from the government’s Green Heat Network Fund (GHNF).

The project forms part of a wider £65m award from the GHNF to five projects across the UK and will span three London boroughs.

Data centres offer a predictable supply of low-grade heat that is often wasted, as many inefficient centres eject this heat into the atmosphere.

As a result of this scheme, the wasted heat will instead be distributed to a number of energy centres via a plastic ‘ambient’ network, where it will supply heat pumps that then raise the temperature, and be piped into a mixture of new and existing residential buildings.

The multimillion-pound scheme is expected to deliver 95GWh of heat across five phases between 2026 and 2040, and the wider Old Oak development will create 22,000 new jobs.

Until the energy centre starts up in 2026, and subject to planning permission, the site will be leased to the Republic of Park Royal creative community, to create workspace for a range of local businesses and suppliers.

David Lunts, chief executive of OPDC, said: “As London’s largest industrial estate, Park Royal provides exceptional opportunities to kickstart a new circular economy.

“To do this, we are temporarily using the site of our heat network’s energy centre to give the space and freedom for grassroots organisations to create amazing products that will be re-used, sustainably and affordably.

“We can’t wait to see these plans evolve and we’re proud to be investing in local businesses who are working hard to reduce waste in London.”