Cofely District Energy has signed a 25-year contract with Leicester City Council (LCC) to link and extend four existing district heating schemes across the city of Leicester in the UK.
The work will be delivered through a new subsidiary company – Leicester District Energy Company – with an investment of £14 million (US$23 million) by CDE and additional funding from the UK government’s Community Energy Saving Programme.
The project will realize a long-held ambition of LCC to optimize the performance of its existing district heating schemes and will also significantly broaden the use of low carbon heating within Leicester.
The low-carbon energy schemes are due to go live during 2012, serving 3000 dwellings across six housing estates, as well as 15 civic buildings, through 7 km of insulated pipework.
When all of the first phases are delivered the scheme will use a combination of over 5 MW of low-carbon gas-fired CHP and biomass boilers to achieve carbon dioxide emission savings of 12,000 tonnes per annum.