A £22m grant for the Hull East District Heat Network is amongst four similar projects to share in £80.6m from Government.
The Hull funds will be used to create build a heat network using excess heat generated by a nearby chemicals park. The project will provide low carbon heating to 14 public sector council buildings and industrial businesses.
Other projects, in Bolton, Exeter, and London will recycle heat from other sources, including waste water from washing machines and sewers.
Lord Callanan, Minister for Energy Efficiency and Green Finance, said: “These innovative projects will help drive down energy costs while also demonstrating why the UK has led the way in cutting carbon emissions.
“They show how energy sources can be found in the most unexpected places – as more homes and businesses will benefit from cleaner heating and lower energy bills.
“Our upgrades will also make sure our existing heat networks are upgraded – so customers can get the reliable heating supply they deserve.”
Heat networks supply heating and hot water to homes and businesses via heat pumps or sources from underground, manufacturing, and waste management. They help cut carbon emissions by supplying heat to multiple buildings from a central source, avoiding the need for households and workplaces to rely on individual, energy-intensive heating solutions, such as gas boilers.
The transition to heat networks forms a major part of the UK’s carbon reduction commitment, with heating in buildings making up 30% of all UK emissions.