Suffolk County Council Seeks Development Partner for US$494 Million Ipswich Heat Network

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Suffolk County Council has issued a tender notice to appoint a Development Partner for the Ipswich Heat Network, a major low-carbon infrastructure project in Suffolk, England. The council, which has been progressing heat network feasibility since 2021 and secured £10 million (US$13.7 million) from the UK Government’s Green Heat Network Fund to support the initiative, is seeking a private sector partner to develop, finance, deliver and operate the core heat network. The network is planned to extract thermal energy from the River Gipping and supply more than 35 GWh of heat per year to public buildings across Ipswich, helping reduce emissions and energy costs. The preferred delivery model is a long-term joint venture in which the council would hold a golden or special share while the private partner contributes capital and expertise. The estimated total value of the contract is around £301 million (US$413 million), excluding VAT (£360 million including VAT), and the duration is projected to run for 40 years from January 2027 to January 2067 under a competitive flexible procedure. Technical, financial, commercial and legal advisory support for the procurement is being provided by AECOM Limited, Asteros Advisers Ltd, Hermetica Black Limited, and Addleshaw Goddard LLP. 

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