District energy scheme set for Gateshead

Construction of a new district energy scheme which will provide heat and power for homes and businesses in central Gateshead and Gateshead Quayside will start in March.

Designed by Parsons Brinckerhoff, the state-of-the-art energy centre and district heating network will provide low-cost, low-carbon energy direct to buildings via a network of pipelines and power cables. The new facility will reduce reliance on traditional energy suppliers and drastically reduce carbon emissions.

The £14m project is being led by Gateshead Council as part of its efforts to retain existing and attract new business to the area, reduce emissions and cut energy bills. Contracts will be awarded for construction of both the energy centre and the connections to buildings, and the first buildings are expected to be supplied from their new power source from early 2016.

Buildings served by the new network are expected to save significantly on energy bills compared to their current suppliers, and this saving will be guaranteed to customers for the life of the scheme. The project is expected to be fully self-financing, the construction and operating costs for Gateshead Council being repaid over the life of the projects via energy sales.

Powered by a 2MW combined heat and power gas engine initially, the energy centre will generate enough electricity to power the equivalent of 5,000 homes, and has the capacity to be expanded to 6MW, as the scheme grows. The electricity will be supplied directly to customers by its own dedicated cables, or “private wire”. Any surplus generated will be sold into the National Grid. The waste heat created by generating electricity is used to provide hot water direct to the buildings through an underground district heat network. This is almost twice as efficient as conventional power stations, where waste heat is lost to the atmosphere.

The first public buildings to be supplied with heat and power will include Gateshead Civic Centre, Sage Gateshead and Gateshead College. Five residential blocks in central Gateshead, managed by the Gateshead Housing Company, will also be supplied with heat.

Plans and negotiations are already underway for the next phase of buildings to be connected, which could include commercial buildings, hotels and offices. The heating network is designed to serve up to 1,000 homes planned for a new community close to the centre of Gateshead.

The new energy centre is being built on Quarryfield Road, close to Baltic Business Quarter and Gateshead College’s Baltic Campus, featuring a high quality design and sustainable construction features. A contract for the construction of the energy centre will be awarded to Balfour Beatty, another contract for the energy networks will be awarded to Clancy Docwra while the contract for the combined heat and power engines will be awarded to Edina UK.

Parsons Brinckerhoff is acting as project manager and Owner’s Engineer and will continue to work closely with the council, contractors, stakeholders and end-users, through the construction and commissioning stages of the project. There are a number of initiatives planned for engaging with the community and educational establishments.