1Energy has formally launched a £100 million commitment to develop a city-wide low-carbon heat network for Derby – a landmark project set to reduce air pollution from buildings by up to 86%, boost local energy security, and future-proof essential infrastructure.  

The announcement was made during a public stakeholder event held on 10th July at the iconic Derby Museum of Making, the site of the world’s first factory and a fitting symbol of the city’s long-standing reputation for innovation. 

The event brought together a diverse group of stakeholders from across Derby’s business, political, academic and community sectors. Attendees heard how the Derby Energy Network will leverage both public and private sector collaboration to deliver a groundbreaking energy infrastructure project – developed entirely at no cost to the local community or council. 

A Celebration of Derby’s Low-Carbon Future 

The launch event drew key figures from local government, major institutions, and community organisations.  Attendees heard from a range of speakers championing the project’s potential for driving Derby’s position as an innovation powerhouse, including Councillor Carmel Swan, Cabinet Member for Climate Change, Transport and Sustainability at Derby City Council; Catherine Atkinson, MP for Derby North; and Baggy Shanker, MP for Derby South.  

Speakers all highlighted the critical role of the Derby Energy Network in supporting the UK’s energy transition and placing Derby at the forefront of sustainable urban infrastructure. They were joined by 1Energy representatives John Saunders and Nicholas Johnson, who outlined the network’s technical scope and long-term benefits for the city. 

“This is brilliant news for our city,” said Councillor Carmel Swan. “1Energy’s £100 million investment in low-carbon heating will mark a transformative step forward for Derby – not only in our mission to tackle climate change by cutting carbon emissions, but also in fostering healthier, more resilient communities.” 

Clean energy, local benefits 

Once operational, the Derby Energy Network will supply homes, hospitals, universities, and businesses with clean heating via underground hot water pipes. This will be powered by water-source heat pumps that capture and repurpose surplus heat from local industry.  

Once operational, the network is expected to: 

• Cut citywide gas demand by approximately 7% 

• Reduce carbon emissions from buildings by up to 77%, saving over 19,000 tonnes of CO₂ annually 

• Eliminate up to 20 tonnes of harmful air pollutants – comparable to removing 16,000 cars from Derby’s roads 

• Create hundreds of skilled jobs and apprenticeships in the local economy 

The initiative has already received strong backing from institutions such as Derby City Council, the Royal Derby and Florence Nightingale Hospitals, the University of Derby, Derby College, and leading businesses including Rolls-Royce and SmartParc. 

“As a former apprentice myself, I know first-hand how transformative these opportunities can be,” said Baggy Shanker MP. “This project is not only cutting-edge – it’s community-building and future-focused.” 

Innovation, investment and legacy 

1Energy’s CEO, Andrew Wettern, emphasised Derby’s legacy of innovation and its potential to lead the UK’s shift toward more secure, sustainable energy solutions. 

“Derby has long led the world in terms of innovation, from water networks to defence,” he said. “We are delighted to bring long-term investment to the city and build on its industrial heritage. The Derby Energy Network will empower local businesses and institutions while delivering significant economic, health, and environmental benefits.” 

With construction set to begin in 2026, the network represents a new model for infrastructure development – combining private capital with strategic public partnerships. Backed by £23 million of UK Government funding and with potential for over £140 million in total investment, the project sets the standard for low-carbon heat networks in the UK. 

1Energy is the first company in the UK to use institutional funding to develop city-scale heat networks and plans to invest £1 billion over the next eight years into similar projects across the country. 

A vision shared 

Phil Lovell, COO of SmartParc, summed up the collaborative spirit driving the project forward: 
“By harnessing innovative technologies and shared values, we’re contributing to a cleaner, greener Derby while supporting businesses and organisations across the city in their transition to net zero.” 

As Derby looks to the future, the Derby Energy Network represents more than just an infrastructure upgrade – it’s a bold commitment to sustainability, innovation, and community resilience. 

With strong backing from local leaders, major institutions, and the private sector, this pioneering project reinforces Derby’s reputation as a city of firsts. 1Energy is proud to be working alongside the people and organisations of Derby to deliver lasting environmental, economic, and social benefits for generations to come.