Vattenfall Powers Scotland’s Low Carbon Future with City-Scale Heat Networks

Vattenfall, one of Europe’s leading experts in heat networks, is driving Scotland’s clean energy transition with large-scale, low carbon district heating projects designed to cut emissions, reduce fuel poverty, and deliver long-term benefits to communities.
With more than 100 years’ experience operating heat networks in Sweden, the Netherlands, and the UK – supplying the equivalent of 600,000 homes – Vattenfall is committed to working towards fossil freedom. In Sweden alone, heat networks provide around 50% of the nation’s heating needs, proving the technology’s reliability and scalability.
In Scotland, Vattenfall’s ambition is clear: develop city-scale, low carbon heat networks that provide affordable, reliable heating and hot water, harnessing local resources while recirculating value in the economy.
Midlothian Energy: A Landmark Partnership
A key achievement to date is Vattenfall’s 50/50 joint venture with Midlothian Council – Midlothian Energy Limited (MEL) – formed in 2023 to deliver low carbon energy projects and investment into the region.
One of MEL’s first major milestones is the MEL Energy Centre, capturing and distributing heat from the Millerhill Recycling and Energy Recovery Centre, operated by FCC Environment. The first phase will serve over 3,500 homes, education facilities, and retail spaces – reducing CO₂ emissions by more than 2,500 tonnes annually, the equivalent of removing 1,200 cars from the road.
Supporting the NHS in its Net Zero Mission
The NHS is one of the largest carbon emitters in the UK public sector. Decarbonising heat in healthcare estates is vital to achieving both NHS and national net zero targets. Vattenfall’s heat networks offer a scalable, low carbon alternative to gas boilers, particularly suited to hospitals requiring continuous, high-volume heating and hot water.
The MEL heat network has the potential to serve 10,000 homes equivalent, including major public buildings such as universities and NHS hospitals – helping reduce operational emissions, cut capital costs compared to replacing systems, and support the NHS’s ambition to become the world’s first net zero health system.
Proven Impact and Social Value
Research commissioned by Vattenfall and conducted by the Edinburgh Climate Change Institute found that delivering heat networks alongside home energy efficiency upgrades across Edinburgh, Midlothian, and East Lothian could deliver £2.1 billion in benefits over 25 years – equivalent to over £13,000 per household. These include £353 million in direct social benefits from better health, improved air quality, and reduced cold, damp housing – all contributing to reduced NHS pressures.
A Long-Term Partner for Low Carbon Heat
Vattenfall takes a place-based, future-proof approach to energy infrastructure. Its heat networks are designed to adapt to new heat sources with minimal disruption, ensuring long-term resilience. Trusted by both public and private sector partners, Vattenfall aligns its mission with local climate, social, and economic goals.
As Scotland works to increase heat network supply from under 2% to 8% by 2030, Vattenfall’s experience and commitment position it as a key delivery partner in meeting the nation’s climate targets.