A subsidiary of housing provider L&Q has secured over £9m from the government-backed Green Heat Networks Fund to deliver a pioneering low-carbon heating scheme at Barking Riverside in East London.
The new neighbourhood is being led by master developer Barking Riverside Limited (BRL), a joint venture between L&Q and the Mayor of London, with BRL also being a key partner to the application process.
The scheme will include the delivery of what is said to be an innovative new energy centre that will capture waste heat from emerging technology being developed in Dagenham Dock. This will heat up to 18,500 new homes and will have the potential to connect to local amenities, including commercial space, new schools, offices, and event venues.
Existing homes will also be connected to the low-carbon heat network, decarbonising current systems and cutting emissions.
Compared with conventional gas boilers, the energy centre is expected to save up to 15,000 tonnes of CO2 each year. This is equivalent to taking 8,929 diesel cars off the road. Over the first 15 years, total savings could reach 40,000 tonnes. The project is also expected to create 26 new local jobs, alongside apprenticeships and trainee positions.
L&Q Energy has been providing heat and hot water via communal heat networks for over 15 years and operates more than 260 systems across its portfolio.
This scheme represents one of the UK’s largest and most transformational low-carbon heat networks. Construction of the network is set to begin in 2026.
The funding has been secured by L&Q Energy Ltd, a wholly owned subsidiary of L&Q operating as the Energy Services Company (ESCo) at Barking Riverside.
David Lewis, executive director of property and investment at L&Q, said: “Barking Riverside is becoming a blueprint for an innovative heat network that we hope will inspire future developments.
This project aims to lower residents’ energy bills, create new green jobs, and support the UK’s transition to sustainable heating. We are grateful to the government for making this possible.”
Ali Arshad, head of L&Q Energy, said: “This flagship scheme shows the role of heat networks in delivering scalable, sustainable solutions to the UK’s heating challenge. By harnessing alterative local heat sources, Barking Riverside offers a model for clean energy in urban areas, combining environmental responsibility with practical cost savings for residents.”
Kitty Mortimer, land and planning director at Barking Riverside Limited, said: “A truly forward-thinking approach to energy is needed for Barking Riverside, the largest residential scheme in East London, which will ultimately be home to a community of up to 50,000 people. The new heat network marks another step towards a greener neighbourhood.
“We are proud to have already delivered significant infrastructure that encourage green behaviours, from enhanced public transport connections to our pioneering underground waste collection system. Decarbonising energy is an important milestone that demonstrates BRL’s commitment to securing Barking Riverside’s future.”
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