Low carbon heat
Scotland is rapidly pursuing the decarbonisation of heat, creating a huge range of opportunities for low carbon heat projects and investment.
Did you know?
Scotland’s commitment to decarbonisation is demonstrated by our world-leading climate change targets, such as net zero greenhouse gas emissions by 2045.
75% reduction in emissions
Scotland has the toughest statutory target in the world for a 75% reduction in greenhouse gas emissions by 2030.
£2 billion public finance
has been allocated long-term to a new public investment bank to decarbonise Scotland’s economy.
£3bn green investment opportunity
launched by the Scottish Government to attract new low carbon investments into Scotland.
A unique opportunity
Scotland is setting the pace for the rest of the world
Having already largely decarbonised electricity, Scotland is now pursuing the decarbonisation of heat as a national priority. Heat is the single largest source of carbon emissions in Scotland and the largest element of our energy demand.
With the lowest rate of decarbonised heat of any country in Europe, twinned with the toughest statutory ambition in the world, we need to rapidly scale up the expansion of low carbon heat capacity.
The combination of these factors means the scale of the low carbon heat opportunity in Scotland is enormous, presenting immediate opportunities across the industry.
Low carbon heat projects underway in Scotland
The Queens Quay is an innovative heat network in Clydebank that uses ground-breaking low carbon heat generation technologies, including harnessing heat from wastewater and large-scale water sourced heat pumps. It's Scotland’s largest single heat network powered by Scotland’s first large-scale river-based heat pumps.
The Glasgow Observatory provides an at-scale facility, open for research and innovation to explore the processes and impacts of minewater geothermal as a sustainable way of heating urban homes and businesses.
The availability of 600km3 of disused mine workings in Scotland’s Midland Valley could meet 8% of Scotland's domestic heating requirement and up to 40% of Glasgow's heat demand, providing an exciting opportunity for geothermal companies to innovate and grow here.
World first
UK’s new underground observatory in Glasgow is open for research
This is the first of two new underground laboratories in the UK and a world first, that will give scientists an unprecedented look at the subsurface of the Earth.
It comprises 12 boreholes, which are 16-199m deep and fitted with 319 state-of-the-art sensors.
Data from the observatory will help scientists understand how heat using warm water from abandoned mines could be used as a renewable energy source for homes and industry.
Research will contribute to the UK’s ambition to decarbonise its energy supply and achieve net zero by 2050.
"There is no other publicly-funded observatory like this in the world, and it is very fitting that it is located in Glasgow, which will host COP26."
Karen Hanghøj, executive director of the British Geological Survey
HALO is a major 23-acre redevelopment project in Kilmarnock. It comprises 13 acres of mixed used development, including domestic housing which will use a ground source heat array.
The EastHeat project installed solar panels and trial heat storage batteries in housing association properties across Edinburgh and the Lothian region. The EastHeat project will save its tenant up to 20% on the part of their fuel bill which provides hot water.
Stirling Renewable Heat project is a pioneering district heat network using heat extracted from wastewater, combined with biogas from sewage and combined heat and power (CHP) to heat a leisure centre, school, sports stadium and offices.
4D Heat is a new multi-partner project led by National Grid Electricity System Operator (ESO) and Scottish and Southern Electricity Networks (SSEN) which will explore the potential to use electric heat demand in off-gas areas of Scotland to soak up surplus wind generation, rather than reduce wind farms' output.
The 4D Heat project aims to find a way to match the flexible demand from electric heat to occasions when wind farms are generating too much power, without impacting on the distribution network.
Benefit from ongoing support
With a compact geography, engaged and connected industry leaders and active support from the Scottish Government, Scotland offers an accessible, well-connected and collaborative location for your low carbon heat project.
We know that industry engagement is crucial to success. That’s why our research excellence is aligned with – and supported by – a network of innovation centres that have been designed by industry for industry-led collaborations.
- Energy Technology Partnership (ETP) – Europe’s largest energy research partnership with specialist expertise in heating/cooling technologies, thermal energy storage and supply/demand mapping
- Construction Scotland Innovation Centre – Industry-led centre to support businesses to deliver transformational change in construction, including increasing efficiency
- Scottish Energy Centre – Renewable energy and sustainable design in construction, including thermal simulation
- CENSIS – Scotland's Innovation Centre for accelerating business growth through sensing, imaging and Internet of Things (IoT) technologies, including an IoT project to tackle fuel poverty
- The Data Lab – Industry-led innovation centre that enables new data science capabilities to develop in a collaborative environment, including a data-informed approach to heating systems
Why Scotland for low carbon heat?
Scotland’s commitment to decarbonisation is demonstrated by our world-leading climate
change targets:
- 50% of Scotland’s total energy demand (electricity, heat and transport) to be supplied by renewable sources by 2030
- Net-zero greenhouse gas emissions by 2045
- 75% emissions reduction by 2030 – the toughest statutory emissions target in the world
Scotland’s commitment to a net-zero future is underpinned by strong government support
designed to boost the scale and pace of decarbonised heat:
- £1.6 billion commitment to decarbonise heat and improve energy efficiency
- £301 million in public funding for low carbon heat, including £120 million Heat Transition Deal
- The Heat Networks Bill (2020) sets the regulation and licensing regime to ensure the development of new heat networks
Strong government targets will drive the growth of low carbon heating in Scotland:
- 35% of heat for domestic buildings from low carbon heat technologies by 2032
- 70% of heat and cooling for non-domestic buildings from low carbon heat technologies by 2032
- All new homes must use low carbon heating from 2024
The scale of the transition to low carbon heat in Scotland offers huge opportunities for innovative heat companies, as currently:
- 52% of Scotland’s energy demand comes from heat (approx. 82,895 GWh per year)
- Heat is the single largest source of our CO2 emissions at 41%
- Natural gas heats 79% of houses and around 50% of businesses
You can take your research and development to the next level and exploit commercial opportunities at an accelerated pace in Scotland, thanks to cutting edge facilities like the:
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Got a question about the benefits of setting up your low carbon business in Scotland? Talk to our advisers.