Veolia Waste Energy Powers Bermondsey Heat Network in South London

Key Points

• Veolia signs a 25-year contract with Greystar to design, build and operate a new district heating network for six apartment blocks in Bermondsey.
• The heat network will use hot water sourced from the South East London Combined Heat and Power (SELCHP) EfW plant in Lewisham.
• The system is expected to reduce carbon dioxide emissions by around 1,524 tonnes annually.
• The network is scheduled to become operational in May 2026, distributing heat at approximately 75°C.
• The project aims to support the UK’s net-zero goals by providing locally sourced, low-carbon heat.
• Veolia will handle design, construction, operation, maintenance, and lifecycle replacement of the network.
• The network will include a back-up boiler facility to ensure system resilience.
• The project supports London’s broader strategy to expand heat networks using waste heat from energy recovery facilities.
• The Greater London Authority (GLA) and government initiatives are promoting large-scale heat network rollouts as part of climate commitments.
• Other major London projects such as South Westminster Area Network (SWAN) and Old Oak and Park Royal Energy Network (OPEN) are advancing similarly.
• Councillor John Batteson praised the project for reducing the carbon footprint and providing cleaner energy locally.

What is the Bermondsey heat network project?

As reported by the team at LetsRecycle.com, Veolia has entered a 25-year partnership with real estate firm Greystar to develop a new district heating network serving six apartment blocks within Greystar’s Bermondsey Project development. The network will utilise waste heat from the South East London Combined Heat and Power (SELCHP) Energy from Waste (EfW) plant located in Lewisham. This project represents a crucial step in delivering low carbon heat to local residents while increasing energy security and resilience in London.​

John Abraham, Chief Operating Officer for Industrial, Water & Energy UK, Ireland & Nordic at Veolia, stated: “This will make a significant difference to the people it serves, delivers increased energy security and resilience, and will help advance sustainability in London”.​

How will the heat network operate and what impact will it have on emissions?

According to Renewable Energy Magazine, the Bermondsey heat network will begin operation in May 2026. It will distribute recovered heat at approximately 75°C through insulated pipes into connected buildings. The heat supplied will have around 60% renewable content due to the biogenic component of the waste processed at SELCHP, making it a low carbon alternative to traditional heating methods like natural gas.​

The network is expected to cut roughly 1,524 tonnes of carbon dioxide emissions annually, supporting London’s commitment to combat climate change by reducing the carbon footprint of heating in the residential sector. Veolia will be responsible not only for design and construction but also for ongoing operation, maintenance, and eventual system replacements during the contract tenure.​

Why is this project significant for London’s energy and climate goals?

Almost one-third of the UK’s final energy consumption is used as heat across domestic, commercial, and public sectors. The Bermondsey scheme, by harnessing waste energy from an EfW plant, contributes to a wider shift towards sustainable heat solutions in London. The Greater London Authority’s London Waste Heat Study identifies the city as a promising area for large-scale heat network expansion using waste heat.​

Philip Hirst, Director of Sustainability at Greystar, commented:

“Trends such as urbanization, energy transition and digitisation require a forward-thinking approach to infrastructure. The connection to decarbonised SELCHP heat network aligns with Greystar’s net zero and infrastructure ambitions, whilst also providing value to our Bermondsey residents with locally generated, low carbon heat”.​

How does this project fit into the wider context of heat networks in London?

The Bermondsey heat network is part of a growing list of projects utilising energy recovered from waste to supply heat in London. Other major projects include South Westminster Area Network (SWAN) and Old Oak and Park Royal Energy Network (OPEN), both advancing to support the city’s decarbonisation targets. Cory, another EfW operator, revealed plans in September 2025 to channel waste heat from its Riverside 1 facility in Bexley into a London heat network.​

Additionally, the UK government’s Green Heat Network Fund (GHNF) has allocated £34 million across various low-carbon heating projects, with a portion dedicated to EfW-linked networks, further supporting the heat network expansion.​

What are local officials saying about the project?

Councillor John Batteson, Cabinet Member for Climate Emergency, Jobs and Business, praised the initiative: “This ambitious project will provide thousands of residents with cleaner energy sourced locally in south-east London, making positive use of waste generated in Southwark and the wider area while reducing the borough’s carbon footprint in the process”.​

What provisions are being made for reliability and resilience in the system?

Veolia has confirmed that the Bermondsey heat network will be equipped with a back-up boiler installation to ensure resilience and continued supply of heat even in cases where waste heat availability is interrupted. This approach balances sustainability with the practical requirement for reliable heat supply to residents.