The partnership’s first project will be the installation of an innovative district heating network which will provide heat to new homes at the Shawfair development with a carbon saving of 75% when compared with conventional gas boiler heating.

The low-temperature system, expected to be operational in 2021, will bring fourth-generation heat network technology to Scotland - building on Vattenfall’s experience in constructing and operating some of Europe’s fastest-growing heat networks in cities such as Amsterdam.

Tuomo Hatakka, senior vice president business area heat, Vattenfall, said: “We’re delighted to have been selected by Midlothian Council for this long-term energy partnership that puts low carbon, fossil free living front and centre of its ambition. This partnership will serve as a platform for further growth in low-carbon energy solutions in Scotland and the United. Any organisation or company serious about reaching net zero has low carbon heating at the top of its to do list, and this energy partnership is no different.”

Mike Reynolds, managing director of Vattenfall Heat UK, added: “Midlothian is blessed with an abundance of local, low carbon heat potential which means that we can begin the partnership’s work with the installation of a state-of-the-art network that will deliver affordable, low carbon heating to local homes at the Shawfair development. The project provides a model to the kind of progress that can be achieved right now through the deployment of innovative, low carbon district heating networks in the tough challenge of decarbonising the UK’s heating supply.”

Councillor Russell Imrie, Midlothian Council’s cabinet member for economic development, said: “We’re very excited to be working with Vattenfall to set up an energy services company for innovative new projects benefitting local residents and businesses in the area and setting us well on our way to a carbon neutral future. Working closely on our first project with Shawfair LLP, the local developer, and FCC Environment, our existing Zero Waste Contractor, we look forward to delivering another major pathfinding project for Scotland.”

Low temperature heat networks bring with them many benefits - including lower costs, maintenance, and an ability to adapt to take heat from many sources of waste heat such as waste water works and data centres.

The heat feeding the network will be sourced from waste heat produced by FCC’s Millerhill waste and recycling plant and will be fed through a network of pipes to local homes. The partnership will also begin actively exploring the potential of thermal storage and other local heat sources to enable the network to grow and expand across Midlothian and beyond.

This first £20 million project will benefit from financial support of up to £7.3m from the Scottish Government’s Low Carbon Infrastructure Transformation Project, which is part-funded by the European Regional Development Fund. The scheme will also benefit from a close working relationship on the project with Scottish Futures Trust.