Burges Salmon acts for OPDC on new partnering arrangements with Hemiko to develop heat network in London’s largest Opportunity Area

We have advised The Mayor of London’s development corporation for Old Oak and Park Royal (OPDC) on its partnership with leading heat network utility provider, Hemiko, to support the development of its new district heat network, serving West London’s Old Oak and Park Royal regeneration area, the city’s largest Opportunity Area.

OPDC and Hemiko will work together to design, deliver, fund and operate the new low carbon heat network, which will draw waste heat from local data centres, providing low-cost, low carbon energy to over 9,000 new homes and businesses in the local area, as well as existing buildings including Central Middlesex Hospital. Using waste heat from data centre cooling systems in this way is a UK first that positions London at the forefront of the UK’s transition to a low carbon, circular economy, whilst driving the growth of the UK tech sector.

The first phase of OPDC’s heat network is expected to deliver up to 95GWh of heat a year, the equivalent of boiling around 1 billion kettles. The network will expand over five phases between 2028 and 2040. The project, which has already been awarded £37.7 million of funding, will now be bolstered by Hemiko who will invest £63 million in the first phases, growing to around £600 million by 2040, supporting communities, boosting economic growth and creating jobs in West London.

Burges Salmon has market-leading expertise in the clean heat sector and a reputation for advising on nationally significant projects, having supported the Government’s £1 billion heat network scheme in Westminster and Worthing Borough Council on its low carbon district heating project. The firm acts for Government, investors, developers, landowners and the supply chain on every part of the clean heat cycle, from funding models, procurement and planning through to compliance and evolving regulations.

The Burges Salmon team advising OPDC on the partnering arrangements with Hemiko was led by director Emma Andrews, supported by specialists from across the firm’s Projects, Real Estate, Construction and Banking and Finance teams.

Emma comments: “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. Our experience in clean heat and public-private partnerships, combined with our strong data centre credentials straddling several of our specialisms from heat and electricity regulation through to built environment, mean we were well placed to guide OPDC through this procurement. As we continue to support clean heat projects across the country, we’re proud to be playing our part in these ambitious projects and the contribution they are making to the decarbonisation of heat.”

With a dedicated Net Zero team, Burges Salmon specialises in providing strategic guidance to support our clients’ transition to a sustainable future. The firm’s track-record in this area includes successful collaborations with local authorities, private sector partners, and community-driven initiatives to facilitate the development of heat networks schemes, whilst also advising on funding models and ensuring compliance with evolving regulations. Burges Salmon recently published a report on the potential of heat networks to unlock large-scale renewable energy opportunities, which you can access here.

Further information on the story can be found in OPDC’s official announcement: OPDC Announces Hemiko as development and funding partner for innovative New Heat Network | London City Hall.