This report seeks approval to accept a successful funding application made to the Department of Business Energy & Industrial Strategy (BEIS) and to commission a detailed project development (DPD) study for a heat network in Hereford City.

The funding offer from BEIS is for £151,500 which will be matched with £49,500 from existing budgets.

An additional funding bid has been submitted to the Marches LEP’s project development fund for match funding of £20,000. If successful, this report also seeks approval to accept this funding to reduce the required match from the council.

That:

(a)  Herefordshire council accept the grant funding from BEIS;

(b)  The study be commissioned as per the application form at appendix 1;

(c)  Existing budgets be used as match funding at a cost of no more than £49,500, and

(d)  That if successful, Herefordshire Council accept the grant funding from the Marches LEP’s development fund;

(e)  The Energy & Active Travel Manager be authorised to take all operational decisions necessary to implement the scheme including determination of grant applications in accordance with scheme criteria

1.         Not to accept the grant funding.  This is not recommended as without financial support from BEIS this project will not proceed, resulting in a lost investment opportunity to develop a local low carbon, low cost district energy scheme in Hereford.