Burges Salmon helps develop London heat network

Independent UK law firm Burges Salmon has played a crucial role in advising The Mayor of London’s development corporation for Old Oak and Park Royal (OPDC) on a significant partnership with Hemiko, a leading heat network utility provider, aimed at supporting the development of a new district heat network in West London. This initiative marks an important step in the regeneration of Old Oak and Park Royal, which is noted as the city’s largest Opportunity Area.

The collaboration between OPDC and Hemiko will involve the design, delivery, funding, and operation of a low carbon heat network that will utilise waste heat sourced from local data centres. This innovative approach is expected to provide affordable, low carbon energy to over 9,000 new homes and businesses, together with existing establishments such as Central Middlesex Hospital. By using waste heat from data center cooling systems, this initiative represents a UK first, positioning London as a leader in the transition to a low carbon, circular economy while also fostering growth within the UK tech sector.

Anticipation for the first phase of OPDC’s heat network is high, as it aims to deliver up to 95 GWh of heat annually—equivalent to boiling around 1 billion kettles. The network's expansion will occur over five phases scheduled between 2028 and 2040. The project has already secured £37.7 million in funding and will receive an added boost from Hemiko's investment of £63 million in the initial phases, ramping up to approximately £600 million by 2040. This investment is expected to support community development, stimulate economic growth, and create jobs in West London.

Burges Salmon has established itself as a prominent player in the clean heat sector, with a strong reputation for advising on nationally significant projects. The firm's portfolio includes support for the Government’s £1 billion heat network scheme in Westminster and a low carbon district heating project in Worthing Borough Council. The firm’s diverse client base encompasses government bodies, investors, developers, landowners, and supply chains, guiding them through every aspect of the clean heat cycle—from funding models and procurement to planning, compliance, and adapting to evolving regulations.

Leading the Burges Salmon team advising OPDC on the partnership with Hemiko was director Emma Andrews, who was supported by specialists across the firm’s Projects, Real Estate, Construction, and Banking and Finance teams. Emma commented, “It has been a pleasure working on this fantastic scheme with OPDC, demonstrating the huge opportunities and benefits that come with the public and private sectors working together. OPDC’s network is a pioneering project that cuts emissions in the most cost-effective way, boosts the economy and repurposes waste heat from existing infrastructure, making the city more resilient.”

With a strong commitment to sustainability, Burges Salmon's dedicated Net Zero team provides strategic guidance to assist clients in their transition to a sustainable future. The firm's impressive track record includes successful collaborations with local authorities, private sector partners, and community initiatives to promote the development of heat network schemes, whilst also advising on effective funding models and ensuring compliance with evolving regulations. Recently, Burges Salmon published a report highlighting the potential of heat networks to unlock large-scale renewable energy opportunities, further establishing its role as a key player in the decarbonisation of heat and the cultivation of sustainable infrastructures.