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Leeds City Centre Heat Network

Leeds City Council

This public procurement record has 3 releases in its history.

Award

18 Feb 2026 at 15:58

UK6 - Contract Award Notice
Tender

07 Jul 2025 at 15:40

UK4 - Tender Notice
Planning

14 May 2025 at 08:42

UK1 - Pipeline Notice
Summary of the contracting process

Leeds City Council has awarded the contract for the development of the Leeds City Centre Heat Network to Hemiko Limited, with the award being confirmed on 18th February 2026. The project, located in the Leeds AZP Area, involves creating a large-scale, low carbon heat network. It is overseen through a Golden Share Development Agreement, forming a strategic partnership for the Advanced Zoning Programme. The procurement process, conducted using a competitive flexible procedure method, has reached the award stage, where Hemiko Limited will undertake the construction and operation of the network. This ambitious urban development and heating works project, classified under CPV codes for energy services and district-heating mains construction, is scheduled to start by 27th March 2026 and will continue through 31st March 2076. The contract's value is substantial, with gross amounts reaching £4.086 billion, offering significant opportunities in public works.

This tender represents significant business growth opportunities, particularly for companies skilled in energy services and urban development construction work. With Leeds City Council possessing a Golden Share providing strategic influence in the partnership, businesses with expertise in sustainable infrastructure and low-carbon technologies stand to benefit from this long-term, lucrative project. The opportunity is especially suited for businesses capable of meeting technical, commercial, and social value criteria. Large-scale enterprises, and potentially SMEs with proven experience in district-heating systems, can leverage their capabilities to not only participate but thrive in this expansive venture that aims at reducing carbon emissions in urban developments while creating sustainable energy solutions. This contract also underscores the future introduction of Heat Network Zoning regulations, positioning forward-thinking companies at the forefront of the energy sector in the UK.

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Notice Information

Notice Title

Leeds City Centre Heat Network

Notice Description

Leeds City Council ("LCC") is seeking via this Procurement to appoint a Development & Funding Partner to develop the Leeds City Centre Heat Network ("the Network") under a Development Agreement ("DA"). The Network will be a large-scale, low carbon heat network serving the Leeds AZP Area ("the Project"). The Development & Funding Partner will enter into the DA with LCC to undertake development activities during the Development Period. The DA is based on the template "Golden Share Development Agreement" developed by DESNZ for the Advanced Zoning Programme ("AZP") and regulates the design and development of the Network up until the point at which the Project is approved, not approved or is deemed to be unviable at the Approvals Gateway. If the Project successfully meets the Mandatory Requirements ("MRs") set out in the DA, the Development & Funding Partner has met its relevant obligations under the DA and LCC elects to approve the Project, LCC and the Development & Funding Partner will be required to enter into a Joint Venture Partnership via a Shareholders' Agreement ("SHA"). The SHA is based on the template "Golden Share Shareholders' Agreement" developed by DESNZ for the Advanced Zoning Programme and will govern the management of the Special Purpose Vehicle ("SPV") and impose obligations on delivery and operation of the Network. The Development & Funding Partner will be responsible for further development activities, funding and delivering the Project under the SHA, as the Development & Funding Partner. LCC will hold a Golden Share under the SHA. LCC (in its own right and via its wholly owned subsidiary) is the owner and operator of the Leeds PIPES heat network ("Leeds PIPES"). LCC may elect to offer to transfer Leeds PIPES to the SPV on a cash or equity basis after execution of the SHA and in accordance with the terms of the SHA. The following known risk has been identified as part of this procurement: 1. Future introduction of the Heat Network Zoning regulations and the appointment of the Zone Coordinator.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-05128c
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/014927-2026
Current Stage
Award
All Stages
Planning, Tender, Award

Procurement Classification

Notice Type
UK6 - Contract Award Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Open
Procurement Method Details
Competitive flexible procedure
Tender Suitability
Not specified
Awardee Scale
SME

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work

71 - Architectural, construction, engineering and inspection services

CPV Codes

45211360 - Urban development construction work

45232140 - District-heating mains construction work

45232141 - Heating works

71314000 - Energy and related services

Notice Value(s)

Tender Value
£3,405,000,000 £1B-£10B
Lots Value
£3,405,000,000 £1B-£10B
Awards Value
£3,405,000,000 £1B-£10B
Contracts Value
Not specified

Notice Dates

Publication Date
18 Feb 20266 months ago
Submission Deadline
17 Oct 2025Expired
Future Notice Date
16 Jun 2025Expired
Award Date
18 Feb 20266 months ago
Contract Period
27 Mar 2026 - 1 Apr 2076 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Pending
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Leeds City Council
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
LEEDS
Postcode
LS1 1UR
Postcode Area
Leeds
Country
England
Major Region (ITL 1)
TLE Yorkshire and The Humber
Basic Region (ITL 2)
TLE4 West Yorkshire
Small Region (ITL 3)
TLE42 Leeds
Delivery Location
TLE42 Leeds
Local Authority
Leeds
Electoral Ward
Little London & Woodhouse
Westminster Constituency
Leeds Central and Headingley

Supplier Information

Number of Suppliers
1
Supplier Name

HEMIKO LIMITED

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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