A city heating network operating in the Scottish city of Aberdeen has been awarded £1 million ($1.5 million) to expand the network to non-domestic properties with commercial heat sales revenues ring-fenced to heat households in the city.

The system, which is operated by Aberdeen Heat & Power Ltd, already supplies around 2000 council flats in 26 multi storey blocks, low rise sheltered housing complexes as well as 13 public buildings. The funding comes from the Scottish Government’s District Heating Loan Fund, which has awarded a total of £2.7 million to 12 projects across Scotland.

Aberdeen Heat & Power Ltd (AH&P) is a ‘not for profit’ company set up by Aberdeen City Council in 2002 to develop and operate district heating and CHP schemes in the area.

Social Justice Secretary Alex Neil said: ‘Last year, the District Heating Loan Fund was increased to £8 million and I would encourage organisations with district heat projects, at all scales, to apply for funding.’