Leeds heat network South Bank expansion approved as Hemiko appointed to finance, build, and operate new infrastructure

The Leeds heat network South Bank expansion has moved forward after the council’s executive board approved the appointment of Hemiko to deliver the next phase of district heating across the city centre. Hemiko will invest around £30 million to finance, own, develop, operate, and maintain a new low-carbon heat network, with the initial phase targeting 28 residential and commercial buildings on South Bank and reaching up to 8,000 residents. The council has no financial investment in the new scheme as the build cost lies with Hemiko, backed by £23.5 million in government grant funding secured through the Green Heat Network Fund.

How the Leeds Heat Network South Bank Phase Will Work

The new network extends the existing Leeds PIPES system, which recovers heat from the city’s non-recyclable domestic waste plant and distributes it through underground pipes to connected buildings. Under the new Hemiko-led phase, the council says it will retain influence over customer standards, pricing, and the growth rate of the network, but the private sector partner takes the financial and operational risk. Hemiko’s detailed construction proposals are expected in early 2027, with building work starting soon after if approved

“With an initial investment of around £30 million, Hemiko will be delivering the infrastructure that enables this clean and affordable heat to be provided. This will support the council’s ambitions for a thriving city-centre hub for people to live and work.”

— Toby Heysham, CEO, Hemiko

Hemiko’s Growing National Portfolio

Hemiko is an investor, developer, and operator of heat networks across the UK with plans to invest £1 billion into town and city scale networks by 2030. The Leeds heat network South Bank appointment adds a major northern city centre scheme to that pipeline and positions the area as part of Hemiko’s core portfolio alongside London and the West Midlands.

Why this matters for Leeds

This is a significant piece of energy infrastructure for South Bank. The £30 million private investment, layered on top of £23.5 million in government grant funding, means 28 buildings and up to 8,000 residents will be connected to affordable, low-carbon heating. For developers and investors involved in South Bank’s regeneration, a district heat network changes the energy equation for new and existing buildings. .