Byker District Heat Network: Pre-Procurement Market Engagement (Soft Market Testing)

Key information

Posted: 1st July 2026
Company Name: HNDC Ltd
Contact Name: Paul McIver
Contact Email: paul@hndc.co.uk
Telephone: 07792240367
Expires: 17th July 2026

Details

Project overview
Karbon Homes is progressing the decarbonisation of the Byker District Heat Network in Newcastle upon Tyne, a Grade II* listed social housing estate of around 80 hectares, with more than 2,000 connected homes served by the Walker Road Energy Centre and twelve substations. The project is in its commercialisation (pre-procurement) phase, with grant funding secured for this and construction stages. Karbon is supported by HNDC as commercialisation and technical adviser.

The opportunity
Karbon intends, in due course, to appoint a delivery partner, anticipated to be an Energy Services Company (ESCo), to transition heat generation from the existing gas-fired plant to a low-carbon solution. The solution is currently developed around large-scale heat pumps with thermal storage. The commercial and procurement structure is still being finalised, and this engagement will help inform it. This notice does not commence a procurement or call for competition.

Future growth potential
While this engagement concerns the Byker scheme, the ambition is for the network to grow beyond it. A modern, low carbon energy centre at Walker Road would provide a platform for further connections over time, as part of Newcastle’s wider move towards zoned, low carbon heat.

We would welcome interest from partners with the capability and appetite to support that growth, including future expansion to neighbouring heat loads and integration into a wider zonal network as opportunities emerge. Any such expansion is indicative and forms no part of the funded scope at this stage.

Scope of the soft market testing
We welcome responses from organisations with capability across the design, build, financing and operation of district heat networks, including potential ESCo partners, DBOM contractors, and specialist sub-contractors. A Soft Market Testing Questionnaire is available on request and invites views on:
– relevant experience and capability in comparable schemes;
– appetite for delivery in a live, occupied, heritage-listed residential environment;
– appropriate commercial and contracting structures, and parent company guarantee / security positions.

Key site considerations
Summarised for engagement only; full technical reports follow for shortlisted bidders under NDA.
– Heritage. The estate is Grade II* listed, affecting above-ground routing, new fabric and construction phasing.
– Ground conditions. Most sites, including the energy centre, sit within a Mining Remediation Authority Development High Risk Area for probable shallow coal workings, with a precautionary coal mine gas classification. Legacy contamination in made ground, surface water flooding and shallow aquifers also apply.
– Operating environment. Works span a live, occupied social housing estate, requiring careful resident liaison and phasing.

Social and local economic value
Commitments include local employment and apprenticeships, a significant share of contract value placed with Northeast suppliers, accredited heat-network training, and community engagement during construction, all to be embedded in the delivery-partner appointment.

How to register interest
To take part, or to receive the Questionnaire, please register with our e-Sourcing Portal
https://app.panacea-software.com/KarbonHomes/

Should you require technical support with the e-Sourcing portal please email them directly at:
Email: support@panacea-software.com
Phone: 0207 976 0116
Submissions must be via the above e-Sourcing portal. Submitted via postal, or email methods will not be accepted.

Important notes
Market engagement only. This is not a call for competition and not a procurement. Responses will not be used to evaluate or pre-qualify participants. Participation is without prejudice and commits Karbon to nothing. Any future procurement will be advertised separately and run in accordance with applicable law.

Categories

• DBOM
• Developer
• Operation and Maintenance
• Investor
• Other