Karbon Homes has invited tenders for the design, build, finance, operation and maintenance of the decarbonised Byker District Heat Network with potential suppliers in Newcastle upon Tyne (Byker estate).

The Byker District Heat Network tender has been published by Karbon Homes, seeking a delivery partner for a major low-carbon heating infrastructure project in Newcastle upon Tyne. The estimated contract value is £145 million excluding VAT, with a proposed contract period from January 2027 to December 2067. The project aims to decarbonise the existing district heating network serving approximately 1,985 connections across the Grade II listed Byker estate. The scope includes the design, construction, financing, operation and maintenance of the heating network, with delivery required in a live residential environment while protecting the estate’s heritage.

The procurement will assess suppliers on financial and technical capability, project delivery, heat generation and storage, long-term maintenance, customer needs, regulatory compliance and social value. HNDC is providing support to Karbon Homes in preparing and evaluating the tender. The tender submission deadline is 20 November 2026 at 12:00 noon UK time, with clarification questions due by 11 November 2026 at 5:00 pm. This represents a significant opportunity for experienced district heating, engineering, energy and infrastructure organisations, including potential consortiums and specialist subcontractors.

For further details on this tender and to explore the opportunity, interested developers are invited to visit our Business Opportunities page.