The Combined Heat and Power scheme is expected to deliver low cost, low carbon energy to at least 350 homes in Torry as well as a primary school, swimming pool, community centre and various commercial properties in the East Tullos Industrial estate.

The existing combined heat and power system has dramatically reduced the city’s carbon emissions and saved the average electrically heated home up to £18 a week on energy bills - therefore helping thousands of residents climb out of fuel poverty.

An award-winning network, Aberdeen Heat and Power (AHP) has grown substantially since the initiative began in 2002 and currently provides for 2,361 flats in 33 multi-story blocks and two sheltered housing blocks in Seaton, Tillydrone, Hazlehead and Stockethill and 13 public buildings.

Aberdeen City Council’s communities, housing and infrastructure vice-convener, Councillor Jean Morrison, said: “Aberdeen is fortunate to have the country’s leading heat network which allows us to create a more environmentally friendly, sustainable city, to spur economic growth through infrastructural investment and commercial opportunities and, most crucially, to address fuel poverty which has been a persistent challenge across Scotland for decades.

“The decision made at full council instructed officers to develop detailed plans for Phase One of the extension with ambitious plans outlined for the future which could see the heat network, supplied by the proposed Energy for Waste plant in East Tullos, offer sustainable heat to business and homes across the entire Torry area and eventually connect into a citywide network.

“By developing the infrastructure to include commercial premises, the scheme will also be able to generate substantial revenue which can be used for continuous investment in the system.

“It is fantastic to see the entire council unified behind the next phase of the plans which will improve the lives of residents in Torry.

“We also need to remember that heat demand constitutes approximately 50 per cent of the energy used in UK as a whole - it is therefore vital that resources and funding are directed to efficient and sustainable heat supply systems and our Powering Aberdeen action plan is continuously looking for investment opportunities to place sustainability and clean energy at the heart of our communities.”

Council officials will now develop a brief for the scope of works and an initial assessment of how the designs could be extended within the Torry area and more widely across the city as well as continue with a procurement process for a technical design consultancy service.