Cash boost for coastal communities hosting clean energy projects

Britain’s coastal and rural communities are expected to receive financial support as part of the government’s new Plan for Change to make the UK a clean energy superpower

Areas that host renewable energy infrastructure, like offshore wind farms, solar panels, and energy storage facilities, will benefit directly from new funding to boost local services, facilities, and economic growth.

This initiative ensures that communities playing a vital role in delivering clean, homegrown energy also enjoy tangible improvements to their local areas. Funding will come from energy developers, who will be required by law to contribute to community benefit funds.

Supporting local priorities through clean energy projects

The money raised through these community benefit funds will be spent directly on local priorities. This could include building new community centres, upgrading sports facilities, improving transport links, supporting schools, and launching employment programmes. Each community will be given the power to decide how to use the funds, ensuring investment meets their unique needs.

For example, seaside towns in Wales could see investment in grassroots football pitches, while coastal areas in Yorkshire might use the funds to support apprenticeships and engineering training for young people. In the Scottish Highlands, funds may go towards improving rural transport and educational infrastructure.

Payments tied to project size

The amount communities receive will depend on the size and scale of the energy infrastructure being developed. Smaller projects may bring in tens of thousands of pounds annually, while larger developments could generate millions yearly for local areas.

The government wants to ensure a fair and proportionate approach by tying funding levels to project size and rewarding communities for contributing to national energy goals.

The proposals also outline plans for shared ownership of renewable energy infrastructure. This would allow residents to own a stake in nearby projects, reinvesting profits into the community. The goal is to give citizens a more direct role in the clean energy transition and a share in the long-term benefits.

Reducing bills and boosting energy security

These measures are part of a bigger effort to cut household energy bills, reduce dependence on fossil fuels, and increase Britain’s energy security. With clean energy produced at home, the UK can protect billpayers from future global price shocks and support economic growth in areas that have often been left behind.

In addition to community benefits from renewable projects, new policies in the Planning and Infrastructure Bill will offer electricity bill discounts of up to £2,500 over 10 years for homes near new or upgraded power transmission infrastructure.

The announcement builds on previous commitments, including a £360 million Fishing and Coastal Growth Fund announced earlier this week. This fund will help modernise the UK’s fishing fleet, support training for new fishers, and promote British seafood exports. It also follows a new agreement with the EU, providing long-term stability for the UK’s fishing industry.

Together, these initiatives reflect the government’s commitment to revitalising Britain’s coastal and rural regions by aligning economic growth with the country’s clean energy ambitions.

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Lessons on heat pump systems for the public sector

Roberto Mallozzi from Klima-Therm shares practical insights on delivering leading large-scale heat pump systems in public sector buildings to maximise energy efficiency, enhance service outcomes, and minimise carbon emissions plus operational costs

Maintenance backlogs across public sector buildings prevent essential services from being effectively delivered while acting as a barrier to meeting environmental targets. Heat pumps are part of the solution, but with technology evolving rapidly, decision-makers need guidance on maximising their investment.

Drawing on decades of experience delivering leading large-scale heat pump systems, I will share practical insights on how public sector buildings can upgrade heating systems to maximise energy efficiency and service outcomes while minimising carbon emissions and operational costs.

A recent National Audit Office (NAO) report estimated maintenance backlogs across public sector buildings to be at least £49 billion. Ministry of Defence buildings, schools and NHS facilities account for 88% of this burden, each with backlogs exceeding £10 billion. (1) Over 1.5 million children attend schools requiring major upgrades, with 729,000 in buildings deemed unsafe or dilapidated by government or local authorities.

Decision-makers face pressure on multiple fronts. Urgent remediation is required to improve service outcomes in critical areas, such as education and healthcare. If upgrades are deferred, the Cabinet Office has estimated that costs could rise by 50% in two to four years. And finally, those operating in the public sector must meet carbon reduction targets. Funding is available under the Public Sector Decarbonisation Scheme, which aims to reduce building emissions by 75% by 2037, compared to 2017 levels. (2)

Heat pumps for government buildings

In 2024, renewable technologies, including wind, solar and biomass, generated 45% of UK power, with nuclear taking low carbon energy generation to a record-breaking 58%. The increasingly ‘green’ profile of the National Grid makes for a compelling argument for heat pumps as an environmentally responsible electric heating choice for public sector buildings.

Heat pumps deliver impressive energy efficiency, lower running costs than alternatives, reduced carbon emissions and decreased maintenance requirements compared to combustion-based systems. However, realising these benefits depends entirely on proper specification, installation and maintenance.

At Klima-Therm, we have extensive experience delivering large-scale heat pump systems across diverse applications, including universities and college campuses, medical research facilities and listed buildings. What lessons have we learned from supplying what we believe to be the largest range of heat pumps available in the UK?

Choose the right heat pump for your application

Public buildings have diverse requirements, from healthcare facilities needing consistent hot water to educational buildings with varying occupancy patterns. At Klima-Therm, we supply an extensive range of heat pump solutions specifically designed to meet these varied needs:

  • The POKER290 from Rhoss is a ground-breaking new range of high-temperature air-cooled reversible propane (R290) heat pumps that delivers exceptionally high-water temperatures and outstanding efficiency (A Class CoP, SCoP of 3.2 at medium temperature and 3.81 at low temperature). Its modular design expands capacity from 48kW to 190kW by connecting up to four units, making it ideal for phased retrofits in schools, universities, healthcare facilities and leisure centres.
  • The UniPACK-P and UniPACK-P EXP series offer flexible heating solutions with cooling capacities from 50kW to 160kW. These propane-based systems produce hot water up to 72°C even with external air temperatures down to -12°C and contacts for smart grid and solar photovoltaic integration, offering exceptional operation all year round.
  • For buildings requiring very high-temperature domestic hot water, our Enerblue HP90 CO2 heat pump range delivers water temperatures up to 90°C with external temperatures as low as -20°C. With heating capacities from 14.5kW to 133.2kW and a CoP of 3.2, it offers significant energy savings for applications requiring a consistent hot water supply.
  • The innovative 3DxHP heat pump AHU eliminates defrost cycles entirely, preventing interruptions in thermal output and ensuring consistent comfort in applications such as schools, healthcare facilities and leisure centres.

For sites with concurrent heating and cooling demands, it can be tempting to size for the maximum peak, but this is a bad practice that results in an inefficient and costly operation that shortens the life of the plant. We recommend sizing for the lowest of the two peaks, supplementing with dedicated machines where necessary, and using an approach that optimises energy efficiency, reliability, and capital expenditure.

Natural refrigerants offer future-proofed sustainability

At Klima-Therm, we’ve long advocated for natural refrigerants, particularly propane (R290). Our experience of over 300 propane heat pump installations over the last 15 years has demonstrated that these systems are safe and highly efficient with proper handling.

Natural refrigerants like propane and carbon dioxide (CO2/R744) offer significant environmental advantages with zero ozone depletion potential and minimal global warming impact. For public sector organisations that want to future-proof their heating, these refrigerants provide a sustainable solution that feeds into long-term decarbonisation goals.

For example, the POKER290 range of high-temperature propane heat pumps is ideal for a wide range of public buildings, including schools, universities, hospitals and care homes. Its modular arrangement allows capacity to be increased according to demand, perfect for phased retrofits in the public sector where funding may be released incrementally.

Intelligent controls enhance system performance

Smart controls can transform heat pumps into grid assets while maximising efficiency. For larger public sector estates, implementing advanced control systems like the MTM Multi Technology Manager can optimise the operation of multiple units, ensuring the most efficient units take priority and managing combined heating and cooling loads effectively.

The ability to sequence different types of units – including chillers, heat pumps and polyvalent (4-pipe) systems – provides exceptional flexibility for complex public buildings with diverse heating and cooling requirements.

Choose a total service provider

Public sector decision-makers should seek partners who offer comprehensive services from consultation to ongoing maintenance, protecting the significant financial investment required to refurbish and, in some cases, rebuild public sector buildings.

At Klima-Therm, we offer a total solution approach – from initial consultation, design and specification to installation and preventative maintenance – ensuring public sector buildings achieve optimal performance, energy efficiency and environmental benefits from their heat pump investments.

With the benefit of our extensive experience with large-scale heat pump systems, decision-makers work with us to confidently choose low-carbon heating and cooling solutions that deliver long-term value for buildings and the communities they serve.

References

  1. https://www.nao.org.uk/press-releases/government-building-maintenance-backlog-is-at-least-49-billion-spending-watchdog-says/
  2. https://assets.publishing.service.gov.uk/media/65d89ceb87005a001a80f8e4/psds-phase-3a-summary-report.pdf

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10 companies selected to compete for Denmark’s DKK 28.7 billion CCS fund

The Danish Energy Agency hopes to reduce its carbon footprint by selecting 10 companies to compete for DKK 28.7 billion in funding for Carbon Capture and Storage (CCS) projects

The funding initiative will cut Denmark’s CO₂ emissions by 2.3 million tonnes annually from 2030.

Strong interest in CCS funding

The funding competition comes after the call for applications was issued in March 2025, where 16 companies applied to be prequalified.

As the tender framework stated, only 10 companies could move forward. These selected organisations now have the opportunity to submit project proposals for CCS initiatives that aim to capture and permanently store carbon emissions.

This funding round is part of Denmark’s bigger plan to reach its national climate targets. The CCS fund is structured to support projects that deliver tangible environmental benefits. Payments from the fund will be made based on the volume of CO₂ captured and stored, ensuring that the funding directly contributes to emission reductions.

Prequalified companies

The Danish Energy Agency has chosen companies with experience in carbon capture, storage, or large-scale infrastructure development. The prequalified companies, listed alphabetically, are:

  • AffaldPlus Affaldsenergi A/S (Næstved Affaldsenergi A/S)
  • ARGO CCS A/S
  • E.ON Carbon Capture Solutions Copenhagen ApS
  • Energnist CaptureCo A/S
  • Fjernvarme Fyn Fangst A/S
  • Gaia ProjectCo P/S
  • HOFOR DSS SPV A/S
  • Kredsløb Holding A/S
  • Ørsted Bioenergy & Thermal Power A/S
  • Aalborg Portland A/S

These companies will now enter the next stage of the competition, where they will prepare detailed project descriptions and submit initial offers for funding consideration.

Next steps in the tender process

The competition will progress through several phases. Prequalified companies must submit their Initial Offers (INDO) by August 26, 2025. A negotiation phase between each company and the Danish Energy Agency will follow this. Final and Binding Offers (BAFO) are expected to be due by December 17, 2025, with contract awards planned for April 2026.

The CCS fund is designed to stimulate investment in green technologies and establish a long-term market for carbon capture and storage within Denmark. It is part of the Danish government’s commitment to developing innovative climate solutions.

Storing CO₂ domestically or abroad

Under the fund’s guidelines, only CO₂ captured within Denmark will count toward the country’s climate targets. However, the carbon can be geologically stored domestically or internationally, provided it meets the required safety and environmental standards. This flexibility encourages rapid deployment of CCS projects while ensuring measurable climate benefits.

Awaiting EU approval

Before the funding can be fully implemented, the CCS initiative must receive state aid approval from the European Commission. This regulatory step ensures that the financing complies with EU competition rules and state aid regulations.

Once approved, the initiative is expected to play a critical role in helping Denmark meet its climate obligations while supporting technological innovation and job creation in the green energy sector.

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UK Government passes Green British Energy Bill

The UK government is solidifying its efforts to reshape its energy future as Parliament passes the Green British Energy Bill

This new change allows publicly owned energy companies to invest in clean, secure, homegrown energy.

Supported by £8.3 billion throughout this Parliament, Great British Energy is set to deliver affordable power, energy security, and thousands of green jobs nationwide.

Supporting the transition into clean energy

Great British Energy will focus on accelerating the rollout of strategic renewable energy projects, partnering with the private sector to unlock next-generation technologies such as floating offshore wind.

Great British Energy is a key part of the Government’s  “Plan for Change” as they hope to make the UK a clean energy superpower and reduce the reliance on the fossil fuel markets.

With the clean energy sector being an essential part of the modern Industrial Strategy, the company’s efforts are expected to boost local economies, particularly in industrial heartlands where manufacturing for renewable infrastructure like wind turbine components and cables can thrive.

Delivering benefits across the UK

The Government has already started using Great British Energy’s resources to fund renewable energy schemes in communities, schools, and hospitals.

A new £200 million fund is supporting rooftop solar and other clean power projects, which are expected to save hundreds of millions of pounds in energy costs. For example, NHS Humber Health Partnership recently received nearly £8.5 million in funding, resulting in lifetime savings of up to £14.2 million.

A £4 million community energy fund has opened in Scotland for applications. Local groups can apply to develop projects like community-owned wind turbines, rooftop solar installations, and small-scale hydropower. The profits generated could be reinvested in local priorities or used to reduce household energy bills.

In Wales, nearly £3 million in funding has been allocated to support local renewable initiatives, further showing Great British Energy’s UK-wide reach and impact.

The Green British Energy Bill: Supporting jobs and the energy industry

Along with community investments, Great British Energy is working towards laying the groundwork for a strong domestic supply chain in clean energy.

A £300 million fund has been dedicated to supporting offshore wind supply chains, aiming to boost the work of British engineers, technicians, and manufacturers. This includes producing key components such as floating offshore platforms and undersea cables.

A roundtable hosted in Edinburgh today, attended by UK and Scottish officials, focused on the supply chain opportunities available in Scotland. It represents a concerted effort to ensure that the shift to clean Energy supports high-quality employment and industrial growth.

Backing and strategic direction

The Great British Energy Bill has received the green light from all three devolved governments: England, Scotland, and Wales. This marks the first consensus of its kind under this Parliament.

This agreement ensures that Great British Energy can operate effectively across the UK and deliver equitable benefits to every region.

The Energy Secretary will outline the company’s strategic priorities in the coming weeks, identifying the key technologies and investment areas that will shape Britain’s clean energy future.

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