A pioneering low-carbon heat network harnessing energy from the Leeds and Liverpool Canal has been opened, marking a major milestone in Liverpool City Region’s journey to net zero.
The new Mersey Heat Energy Centre, developed by The Peel Group and Ener-Vate, was unveiled at Princes Dock in Liverpool Waters. The project received £7.5 million in funding from the Heat Networks Investment Project (HNIP) and will deliver energy-efficient heating and hot water to homes, businesses and public buildings across the city.
Designed and built by Vital Energi, the centre houses one of the UK’s largest two-stage water source heat pumps, provided by Star Refrigeration. The system extracts heat from the nearby canal and distributes it through a 6km district heating network, cutting carbon emissions by 4,200 tonnes annually.
Liverpool City Region’s Cabinet Member for Innovation, Cllr Liam Robinson, said:
“The launch of the Mersey Heat Energy Centre is a landmark moment in Liverpool’s journey towards a cleaner, greener future.
“It is a visible example of how Liverpool is leading the way on low-carbon infrastructure, protecting historic buildings, cutting emissions and creating long-term green value for our communities.
“Liverpool has long been a leader in climate action, and this project reinforces our commitment to achieving net zero. It’s not just about infrastructure, it’s about creating a legacy of sustainability that benefits our communities, our economy, and our environment.
“I’m proud to see this vision and investment come to life, creating jobs in the emerging green economy. I want to thank all the partners involved for helping Liverpool take another bold step towards a low-carbon future.”

The network will initially deliver 20GWh of heat per year, serving up to 6,700 homes and 1.3 million square feet of commercial space. Planning permission is already in place to expand the project to 45GWh, enough to supply 17,000 homes with low-carbon heating.
The Liverpool City Region, which was the first in the UK to declare a climate emergency in 2019, has already reduced carbon emissions by 40% since 2005. The launch event was attended by Cllr Liam Robinson, Leader of Liverpool City Council, and Cllr Anthony Burns, Cabinet Member for Net Zero.
This innovative project supports the region’s ambition to become carbon neutral by 2035 or sooner, while showcasing how local infrastructure can play a key role in the UK’s clean energy transition.
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