L&Q Energy and BRL secure funding to deliver low-carbon heat to Barking Riverside

The new heat network will deliver affordable heating while cutting carbon emissions and creating local jobs.

L&Q, through its subsidiary L&Q Energy, has secured over £9m from the Government-backed Green Heat Networks Fund to deliver a pioneering low-carbon heating scheme at Barking Riverside,

East London. The new neighbourhood is being led by master developer Barking Riverside Limited (BRL), a joint venture between L&Q and the Mayor of London, with BRL also being a key partner to the application process. 

The scheme will include the delivery of an innovative new energy centre that will capture waste heat from emerging technology being developed in Dagenham Dock. This will heat up to 18,500 new homes and will have the potential to connect to local amenities, including commercial space, new schools, offices, and event venues.

Existing homes will also be connected to the low-carbon energy centre, decarbonising current heating systems and cutting emissions.

Compared with conventional gas boilers, the energy centre is expected to save up to 15,000 tonnes of CO₂ each year. This is equivalent to taking 8,929 diesel cars off the road. Over the first 15 years, total savings could reach 40,000 tonnes. 

The project will also create 26 new local jobs, alongside apprenticeships and trainee positions. 

L&Q Energy has been providing heat and hot water via communal heat networks for over 15 years and operates more than 260 systems across its portfolio. 

This scheme represents one of the UK’s largest and most transformational low-carbon heat networks in the UK. Construction of the network is set to begin in 2026.

The funding has been secured by L&Q Energy Ltd, a wholly owned subsidiary of L&Q operating as the Energy Services Company (ESCo) at Barking Riverside.

David Lewis, Executive Director of Property and Investment at L&Q, said:

“Today, Barking Riverside is becoming a blueprint for an innovative heat network that we hope will inspire future developments.

This project aims to lower residents’ energy bills, create new green jobs, and support the UK’s transition to sustainable heating. We are grateful to the government for making this possible.”

Ali Arshad, Head of L&Q Energy said:

“This flagship scheme shows the role of heat networks in delivering scalable, sustainable solutions to the UK’s heating challenge. 

By harnessing alterative local heat sources, Barking Riverside offers a model for clean energy in urban areas, combining environmental responsibility with practical cost savings for residents.”

Kitty Mortimer, Land & Planning Director at Barking Riverside Limited, said:

“A truly forward-thinking approach to energy is needed for Barking Riverside, the largest residential scheme in East London, which will ultimately be home to a community of up to 50,000 people. The new heat network marks another step towards a greener neighbourhood.

We are proud to have already delivered significant infrastructure that encourage green behaviours, from enhanced public transport connections to our pioneering underground waste collection system. Decarbonising energy is an important milestone that demonstrates BRL’s commitment to securing Barking Riverside’s future.”

The announcement comes as Barking Riverside enters a major growth phase. A new Outline Planning Application – the UK’s largest in 2024 – was submitted last year and is expected to be determined in 2026, with plans for up to 20,000 homes.

This growth is backed by a £124 million investment package from Homes England, supporting new homes by unlocking essential infrastructure.

Key developments over the next 12 months include:

• Enhancing River Thames access with a pedestrian promenade, play areas, public seating, and upgraded flood defences.
• Creation of a major Boulevard park with sports and play spaces.
• Opening of new health facilities, shops, and restaurants.
• Strategic land sales to enable over 3,000 new homes.