A London-based specialist in district heating networks, which can supply heat to up to millions of consumers from a central network of underground pipes carrying hot water, is leading the charge for energy-efficient and cost-effective heating, with support from Lloyds Bank.
Proven Project Construction was formed in 2017 and works with clients including local councils and private developers across the capital and the UK, helping them with the design, supply and installation of district heating networks. Some of the recent, high-profile projects the business has worked on include Queen Elizabeth Olympic Park, Birmingham City Council Broad Street, Meridian Water Heat Network in Enfield, and Dublin Airport Terminal 1.
Lloyds Bank has supported the company with £730,000 of asset finance funding — which allows businesses to purchase equipment without disrupting cash flow — to buy fleet vehicles and plant machinery such as welding kits and excavators to date. This support has helped Proven Project Construction to be able to respond to increased demand especially from energy companies and local councils, which has seen it grow turnover exponentially from £70,000 in 2017 to a forecasted £12m turnover this year based on secured projects.
The recent surge in demand is in part down to the UK Government announcing in late 2021 that it was working towards growing the district heating networks sector, to be able to meet around a fifth of all heat demand by 2050. This is being supported by its Heat Networks Investment Project (HNIP), which is contributing funding to the development of heat network projects across England and Wales, some of which Proven Project Construction is working on.
Two recent projects the business has been involved in are building out a district heating network in Swaffham, Cambridgeshire to supply to 300 homes, and a first-of-its-kind pilot scheme working with Enfield Council to retrofit a number of Victorian houses which have an existing gas central heating system to a district heating network. The landmark project makes Swaffham the first village in the UK to retrofit a renewable heating network into an existing community.
Managing Director Denis O’Connell says there’s been a clear shift in focus towards exploring the benefits that district heating networks bring, and he expects this to increase in the face of rising energy prices and the cost-of-living crisis.
Denis said: “One of the major pluses of these networks is that they remove the reliance on gas-fuelled heating, so they have the potential to set in stone what consumers pay for their heating for the foreseeable future. We operate in a fairly niche industry with only a small number of companies that do what we do, but big developers along with the government are now seeing the potential of implementing district heating networks at scale.
“We have a team that is passionate about sustainable practices and a greener future, and we’re going all out as a business to lead the industry on the path to net zero. Lloyds Bank has been by our side throughout and continues to support these ambitions, offering the guidance and funding we’ve needed at every stage.”
Proven Project Construction, which has also doubled its headcount to 70 employees during the last year to meet demand, has been a customer of Lloyds Bank since 2018.
Brendon Shanahan, Relationship Director at Lloyds Bank, added: “We feel really proud to be supporting Denis and the team, who are making a huge impact in their sector. Helping to provide alternative sources of heating is more important than ever as the target of meeting net zero by 2050 quickly approaches, and we’re excited to see what the business’s future holds.”
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