Councillor Briars-Delve (Cabinet Member for Environment and Climate Change) introduced the item and highlighted:

a)    Most organisations produce heat as a bi-product of what they do, and in most cases it is either going into “thin air”, or in the case of South West Water, going into the sea;

b)    Heat Networks aimed to utilise waste heat from major source and redirect it through underground pipes in buildings;

c)    The technology had existed for decades, and there were small scale examples in Plymouth, but this was an opportunity to do something on a bigger scale;

d)    It was the first item on the new cross-party Sustainability Advisory Group so that different parties in Plymouth were aware of the scale of the opportunity, and were keen to bring the item for pre-decision scrutiny;

e)    In Plymouth, heating buildings accounted for around 28% of the city’s emissions, second only to transport, and therefore buildings were a key part to decarbonisation;

f)     The plans presented had the potential to decarbonise over 30,000 tons of emissions in Plymouth each year;

g)    Probability of over £400 million of green investment;

h)    It would kickstart Plymouth’s most significant opportunity to provide businesses and households with the lowest cost decarbonised heat available;

i)     400 direct green jobs would be created;

j)     Improvement to air quality;

k)    Improvement to the Plymouth’s energy security and climate resilience;

l)     Plymouth City Council had already introduced these methods within its own estate which not only contributed to decarbonisation, but also saved the Council over £500,000 a year through retrofitting;

m)  Social value.

Jonathan Selman (Net Zero Delivery Officer) added:

n)    Plymouth had been selected as one of 17 cities under the Advanced Zoning Programme (AZP) with significant funding provided by Government;

o)    Plymouth was now in the shortlisted 6 cities;

p)    Heat Networks had been proposed in every CEAP/NZAP (Climate Emergency Action Plan/Net Zero Action Plan) for the Council since 2019;

q)    It was included in the Joint Local Plan with many developments ‘connection ready’;

r)    The delivery approach did not require any Plymouth City Council capital funding;

s)     There was strong market interest and Plymouth was a frontrunner;

t)     Heat represented the biggest energy use in the UK accounting for 46% of all the energy used in the UK and around 30% of UK emissions; 90% of emissions from gas;

u)    Energy Act 2023 provided powers for government to implement heat network zoning in England;

v)    Heat Network Regulations were anticipated for 2025;

w)   Being part of the AZP meant Plymouth was in a favourable position to secure grant funding from the Government’s Green Heat Network Fund;

x)    There was potential for a scheme in Derriford;

y)    Cabinet had endorsed a Plymouth City Council (PCC) led procurement approach with limited risk  and significant scope for rewards;

z)    The executive decision to go to procurement was expected to be made in November 2024 leading to the final decision for implementation expected to be in 2026.

In response to questions, with support from Paul Barnard (Service Director for Strategic Planning and Infrastructure), the following was discussed:

aa)   South West Water had been involved in discussions for some time and their site at Cattedown would be included in the first phase;

bb)Conversations with the Energy for Waste plant, and an incinerator in Derriford had also taken place;

cc)  Cabinet were working closely with South West Water to improve water quality, and this project would improve water quality by reducing ocean warming;

dd)The city centre would be the focal point of the first phase;

ee)People would be able to see work happening and being part of the AZP meant the Government was keen to get projects moving in cities involved, Plymouth included;

ff)    Other local authorities and legal experts had been consulted on the ownership structure;

gg)  The procurement led approach would give the Council more opportunities to increase the social value of the project;

hh)The Cabinet Member was happy to bring the project back to scrutiny at a future meeting.

The Panel agreed to:

1.    Note the changes to the 2024 Plymouth Bus Service Improvement Plan and endorse the subsequent requirement to refresh the Plymouth Enhanced Partnership Plan;

2.    Endorse the proposed stakeholder engagement which would inform future Bus Service Improvement Plans.