Wirral Council has moved forward with plans to award a contract to a preferred private-sector development partner for a new low-carbon heat network in Birkenhead, Wirral, UK.

The project involves developing a new heat network that will supply energy to a variety of properties, including newly built and existing residential homes, as well as new and existing commercial buildings. It is a key component of the Birkenhead 2040 Regeneration Framework, one of the UK’s largest brownfield redevelopment programmes. The wider regeneration will span nine zones, delivering around 21,000 new homes and nearly 1 million square metres of employment space over the next two decades. 

If the project moves beyond the development stage and receives approval through the gateway process, the Council and the development partner will become shareholders in the energy services company (ESCo). However, the Council’s role will be limited to holding a “golden share.” The ESCo will supply heat to a range of public and private organisations, including the Council, under separate connection and supply agreements. The Council will not provide financial investment in the scheme; instead, its golden share will grant it oversight on a small number of key matters such as carbon performance, reporting, and pricing. The ESCo will be responsible for securing all project funding, and its partner will be appointed on a long-term, ongoing basis. 

Revenue generated over the first 40 years of the network is projected to be around £200–£250 million excluding VAT (approximately £240–£300 million including VAT). This estimate covers all phases of the core scheme, the buildings connected to it, and potential future expansion across a wider area. As the project develops and grows, various organisations in the Birkenhead area—across both the public and private sectors—may choose to connect to the heat network. The scheme is intended to be open to such users, which could include sixth-form colleges, local offices of central government departments, universities and other higher education institutions, as well as NHS primary care providers.