Agenda item

RESOLVED that 1) the acceptance of funding from the Heat Network Distribution Unit be noted,

2) the novation of the contract for the Mine Water Energy project from D2N2 to EMMCCA with the effect of accepting the £900,000 funding originally awarded by D2N2 be agreed,

3) the procurement of ENER-G Renewable Solution Ltd to construct and operate the demonstrator and small heat network in Creswell serving the Creswell Heritage and Wellbeing Centre in the first instance be approved,

4) Delegated authority be given to the Chief Executive Officer to make the decision to agree the contract price with ENER-G Renewable Solutions Ltd subject to this not exceeding £200,000

Executive considered a detailed report, presented by the Portfolio Holder for Growth, which provided Members with an update on the mine water demonstrator project at Creswell, and a related feasibility study funded by the Heat Network Distribution Unit.

The report also sought Members approval for:

·       the novation of a contract originally entered into with D2N2 for the funding for the mine water energy project to a contract with the East Midlands Combined Authority for the same project to allow the demonstrator project to go ahead

·       delegated authority to officers to procure a contractor to construct and operate the demonstrator and small heat network in Creswell, serving the Creswell Heritage and Wellbeing Centre in the first instance.

In addition, the report sought to notify Executive of the acceptance of the funding for the feasibility study from the Heat Network Distribution Unit.

The Portfolio Holder for Growth noted that this was an exciting project and was

good for the Council to be at the heart of it, not least given its position in the north Derbyshire coalfield. The projects were linked as one was taking mine water from Creswell Colliery utilising a closed loop system which was a capital project and then looking at whether hot water brought up from the pit would heat or help heat distribution networks in Creswell and or Whitwell. The innovation at Creswell Colliery project is the closed loop system which would act like a coil in an indirect cylinder and by being a closed loop system, the hot water drawn up the shaft would be returned down the shaft, so the heat could be extracted without impacting on the physical integrity of the shaft without having a wider impact on the underground system which was a concern of the coal authority. Following this concern, D2N2 earmarked £200,000 for use on the project and the close loop system.

Moved by Councillor John Ritchie and seconded by Councillor Duncan McGregor

RESOLVED that: 1) the acceptance of funding from the Heat Network Distribution Unit be noted,

2)    the novation of the contract for the Mine Water Energy project from D2N2 to EMMCCA with the effect of accepting the £900,000 funding originally awarded by D2N2 be agreed,

3)    the procurement of ENER-G Renewable Solution Ltd to construct and operate the demonstrator and small heat network in Creswell serving the Creswell Heritage and Wellbeing Centre in the first instance be approved,

4)    Delegated authority be given to the Chief Executive Officer to make the decision to agree the contract price with ENER-G Renewable Solutions Ltd subject to this not exceeding £200,000.

Reasons for Recommendation

Extensive coalfields exist across Great Britain, and it is estimated that 25% of homes and businesses in the UK were located above former coal mines and more so in Bolsover District, and larger parts of North Derbyshire and North Nottinghamshire.

Water within the mines is warmed by natural processes and can, if sustainably

managed, provide a continuous supply of heat. Mine water temperatures are not affected by seasonal variations and subject to the right support, mine water can provide renewable, secure, low carbon heating for buildings in coalfield areas.

With heating accounting for 40% of energy use in the UK, mine water heat connected to an appropriate heat distribution network could also play a large part in the District’s efforts to tackle climate change and support its net zero future alongside providing cheaper energy to its residents.

Therefore, there were good reasons to endorse the application for - and acceptance of the funding for the feasibility study that would help determine whether mine water energy could be utilised in Whitwell and Creswell where there was relatively easy access to the underground mine water and determine the feasibility of heat networks more generally in both locations.

For similar reasons, it was considered appropriate to recommend endorsement of novation of the original contract made with D2N2 to ensure retention of the funding for the mine water demonstrator and the construction of a larger network if the

demonstrator proved to be successful.

In particular, if the demonstrator was successful it would offer ‘proof of concept’ of a

novel system that would significantly reduce the costs and risks associated with mine

water energy and potentially unlock this resource, which would be of local, regional, and

national significance primarily because of the size and scale of the resource and the

difficulties experienced in utilising this resource.

This was also because a heat network using mine water and ground source heat pump

technology would have substantially better co-efficiency of performance compared to air

source heat pump technology and would be cheaper to operate in the longer term

despite higher initial costs because of the higher input temperature (c.17º - 22º) from a

mine water system compared to the ambient winter temperatures (<5º) utilised by an air

source heat pump in the UK.

However, because the system is novel and because it involves the use of mine water

there was demonstrably an insufficient market to tender for the supply of goods,