Why we invested in Derby: Derby Heat Network (part of 1Energy)

Earlier this year, energy firm 1Energy pledged £100 million of private capital for a city-wide heat network in Derby, after securing £23 million of investment into the project from the UK Government. 1Energy’s ‘Derby Energy Network’ aims to cut city-wide gas demand by about seven per cent. Here, in her own words, project director Fei Zheng, explains why Derby was chosen for this transformative project.

Our investment in Derby reflects a shared ambition: to create a cleaner, healthier and more resilient future for the city and its people.

As Derby continues to cement its reputation as an innovation powerhouse, we are proud to play our part by delivering one of the region’s most transformative low-carbon infrastructure projects – the Derby Energy Network.

Heating accounts for around 37% of total UK carbon emissions.

Today, 85% of homes still rely on natural gas, contributing not only to climate change but also to poor urban air quality and growing energy insecurity.

Heat networks offer a proven, scalable alternative.

By generating low-carbon heat centrally and supplying it efficiently through underground pipes, they reduce carbon emissions, remove the need for individual gas boilers and create a pathway to cleaner growth.

Derby is uniquely placed to lead the UK’s shift to low-carbon heating.

With a population of more than 240,000 across the urban area, the city has a concentrated demand for heat and hot water and is home to major anchor institutions with high heat demand – including one of the UK’s largest hospitals, the University of Derby, a wide range of public-sector buildings, and globally recognised industrial leaders such as Rolls-Royce.

At the same time, Derby benefits from a wealth of potential zero-carbon heat sources; from the River Derwent and Severn Trent’s wastewater treatment works to SmartParc food production facilities and the city’s existing Energy from Waste plant.

This alignment of need, opportunity and innovation is what makes this the ideal time for Derby’s first heat network – a project with the potential to scale and serve the majority of central Derby’s heat demand.

We have already secured £23 million from the Department for Energy Security and Net Zero through the Green Heat Network Fund, and we are bringing an additional £100 million in private investment to deliver the Derby Energy Network – a bold step forward in supporting the UK’s energy transition while ensuring Derby remains at the forefront of sustainable urban infrastructure.

The benefits will be far-reaching. The network is expected to cut citywide gas consumption by around 7%, reduce building-related carbon emissions by up to 77% and eliminate up to 20 tonnes of harmful air pollutants – the equivalent of removing 16,000 cars from Derby’s roads.

Crucially, it will also create hundreds of skilled jobs and apprenticeships, strengthening the city’s talent pipeline and supporting long-term economic growth.

This is a project rooted in partnership. We are proud to be working with Derby City and have backing from institutions including the Royal Derby and Florence Nightingale Hospitals, the University of Derby, Rolls-Royce and major employers across the city.

Their support demonstrates a shared belief in Derby’s potential to pioneer new models of sustainable, locally led infrastructure delivery.

Derby has long been a city of firsts – from engineering and manufacturing to its leadership in greener, more resilient systems – and the Derby Energy Network builds on this heritage.

It marks a step change in how heat networks are delivered, pairing private capital with strategic public partnerships to deliver infrastructure that will continue to grow and bring benefit to the city for decades to come.

Construction is set to begin in 2027, but the legacy will extend far beyond the build phase.

This project is not just about decarbonisation; it is a commitment to long-term environmental, economic and social prosperity.

By working together across public, private and community sectors, we are creating an infrastructure asset that will support generations to come.

Through the Derby Energy Network, we are proud to further progress Derby’s legacy of progress and enterprise by helping to write the next chapter, driving a cleaner, greener, and more resilient future for everyone who calls Derby home.