Killingworth Heat Network Project Opportunity (Soft Market Testing)

Tender description

Killingworth Heat Network Project Opportunity This PIN and attachments are provided for information purposes only as part of a soft market testing exercise to gather preliminary insights from potential suppliers and stakeholders. This PIN does not constitute an offer or an invitation to purchase sell or enter into any agreements. Participation in this soft market test does not imply any commitment. The aim of this PIN is to highlight observations, high-level analysis, and results of the techno-economic model conducted to date. The data and analysis presented are preliminary and subject to change. They are intended to inform discussions and no not represent final decisions or commitments. The information in this document is confidential and intended solely for the use of the recipient in connection with this soft market test. The ‘Outline Business Case’ development to date for the greenfield scheme indicates the following key metrics: • 10.5GWh Annual Heat Demand • 5.2MW Peak Heat Demand • 395 Total Connections • £28m CapEx The scheme offers a high number of public sector connections (approximately 69% of heat demand comes from the public sector with corresponding potential demand assurance). Killingworth is also likely to see multiple planned developments built out in the near future, including Killingworth Lane (432 residential dwellings) and Killingworth Moore (1,446 potential residential dwellings, a local community hub, a local primary school and up to 68,000m2 of commercial space). Killingworth has also been identified as a town in North Tyneside that could be designated as a heat network zone, or possibly a heat network delivery area within a wider zone. This soft market testing exercise is seeking a discussion with potential partners who will be able to bring capital and development capabilities to the heat network project. The discussion will include, but not be limited to, the following key points: • The suitability of the technical solution. • The attractiveness of the scheme for investment. • Technical, economic and commercial details from the Opportunity Summary. • The private sector partner’s commercial and financial requirements, including hurdle rates. • Potential commercial structure / delivery model. • Project timelines. **PLEASE CONTACT** Amberside Advisors have been appointed as commercial and financial advisors to the project. Interested parties should reach out to Jack Bedells at Amberside Advisors (jack.bedells@amberside.uk). . Keywords: Research, Engineering, Technology Based Services