ESP Utilities Group has announced a strategic collaboration with Veolia to accelerate the delivery of low-carbon heat networks across the UK.
Under the agreement, Veolia will operate, maintain, design and build the heat networks, while ESP Utilities Group will adopt and own the heat network assets, ensuring long-term investment and reliability for customers and communities.
This collaboration brings together Veolia’s track record in energy infrastructure and its technical expertise in designing and operating complex low-carbon energy systems, alongside ESP Utilities Group’s asset ownership model and history of working with developers and local authorities to deliver critical utility infrastructure.
Heat networks have huge potential to decarbonise the UK, as currently heat accounts for 37% of the UK’s emissions. The Heat Networks Industry Council estimates that heat networks could save 15 million tonnes of CO2e by 2050. The introduction of the Energy Act in 2026 will strengthen consumer protection, performance and fair pricing and help accelerate heat network developments in the UK.
During its 50-year history, Veolia has delivered a range of low-carbon projects—from large-scale heating and cooling networks such as SmartParc SEGRO Derby to fifth-generation heat systems such as the Paris-Saclay innovation district, as well as ground-source heating for critical UK infrastructure, including hospitals and health campuses.
The two companies say that the collaboration offers a powerful proposition for developers, local authorities and stakeholders aiming to meet the UK’s net zero targets. Supported by operational centres in every region of the UK, the partnerships will target market-leading response times for critical callouts that exceed all regulatory requirements, to ensure that potential issues are swiftly resolved to minimise disruptions and maintain system integrity.
John Abraham, chief operating officer of Veolia UK & Ireland, said: “We’re proud to work with ESP Utilities Group to accelerate the deployment of low-carbon heating networks across the UK. These local loops of energy are a critical part of Veolia’s GreenUp strategic plan, to help accelerate progress towards our decarbonisation targets. By combining Veolia’s operational excellence with ESP’s network adoption expertise, we can offer a compelling, funded, scalable solution for the UK’s low-carbon future.”
Kevin O’Connor, CEO of ESP Utilities Group, added: “This collaboration strengthens our position at the forefront of sustainable infrastructure. Our model of long-term ownership, combined with Veolia’s outstanding operational capability, creates a complete solution for customers that de-risks project delivery and supports the journey to net zero.”
ESP and Veolia are already in advanced discussions on several major schemes and will focus on delivering heat networks that are resilient, efficient and built for the future.
