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Development & Funding Partner to develop the Birkenhead Heat Network

Wirral Council

This public procurement record has 4 releases in its history.

Award

24 Mar 2026 at 15:23

UK6 - Contract Award Notice
Tender

20 Jun 2025 at 11:09

UK4 - Tender Notice
Planning

23 May 2025 at 13:39

UK3 - Planned Procurement Notice
Planning

23 May 2025 at 13:14

UK1 - Pipeline Notice
Summary of the contracting process

Wirral Council is leading the procurement process to find a Development and Funding Partner for the ambitious Birkenhead Heat Network project, part of the Birkenhead 2040 Regeneration Framework. This transformative project aims to develop a new district heating network to serve a variety of residential and commercial buildings in Birkenhead, a designated 'priority district heating zone' in the Wirral Local Plan. With a procurement status of "complete," and the award expected by 31st March 2026, the project is positioned to reduce carbon emissions and offer lower-cost heating solutions. The procurement method is a competitive flexible procedure, ensuring rigorous selection based on technical, commercial, and social value criteria.

The Birkenhead Heat Network tender represents a significant opportunity for businesses specialising in construction, utilities, and energy services. With anticipated revenue between £250 million and £300 million over the next 40 years, the project offers robust growth potential for entities like district heating providers and firms involved in energy solutions. Businesses capable of delivering innovative and sustainable solutions will find themselves well-suited to compete, especially those experienced in collaborating with public sector clients like sixth form colleges, higher education organisations, and NHS Primary Care bodies. Establishing partnerships with Wirral Council in this key initiative could lead to long-term investment and strategic collaboration in one of the UK's largest brownfield redevelopment sites.

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Notice Information

Notice Title

Development & Funding Partner to develop the Birkenhead Heat Network

Notice Description

The project comprises development of a new heat network serving a mix of buildings including new build residential, existing residential, new build commercial and existing commercial. The project forms an integral part of Birkenhead 2040 Regeneration Framework; one of the biggest brownfield redevelopment sites in the UK. This regeneration of Birkenhead will take place across nine areas providing 21,000 new homes and almost 1,000,000 square metres of employment space over the next 20 years. The area to be served by the network has been identified as a 'priority district heating zone' in Wirral's Local Plan. It will make a significant contribution to reducing the carbon impact of new / existing development in the Borough and provide opportunities to residents and businesses for lower cost heating. The project is well-aligned with regional policy objectives and initiatives. It also fits into the Government's introduction of 'heat network zoning', which, through implementation, will mandate certain types of buildings in identified urban areas such as Birkenhead to connect to district heating within a prescribed timeframe. It is envisaged that, once heat networking zoning is in place, the Birkenhead Heat Network could benefit from zoning 'incumbency' rules - meaning that nearby eligible buildings will be mandated to connect, further securing demand. The Council and Development Partner will enter into a Development Agreement under which the Development Partner will further develop its proposals for the heat network. The Development Agreement sets out a number of requirements which the project must meet in order to proceed into an approvals gateway process. If the project proceeds beyond the development period (i.e. is "approved" as part of the approvals gateway process), the Council and Development Partner will become shareholders in the ESCo, albeit that the Council's shareholding will be limited to a "Golden Share". The ESCo will be the supplier of heat to a number of public and private sector bodies (including the Council) under separate heat connection and supply agreements. The Council will not be investing in the project. The Golden Share will simply allow the Council to exercise control in relation to a limited number of reserved matters including carbon intensity, reporting and tariffs. The ESCo will be required to source all capital funding for the project. The ESCo partner will be appointed in perpetuity. The revenue derived over the first 40 years of the network is estimated to be in the region of PS200 million (excluding VAT) / PS240 million (including VAT) - PS250 million (excluding VAT) / PS300 million (including VAT). This includes all phases and connected buildings in the core scheme and allowing for further expansion with the wider geographic area. The estimated value cannot be guaranteed. As part of the operation and expansion of the project, a range of customers in the Birkenhead area may seek to use the heat network, including a mix of public sector and private sector entities. It is intended that this project will be available to those other entities. Those entities may include: Sixth form colleges Central government departments (responsible for local offices) Higher education organisations NHS Primary Care bodies Pursuant to Section 51 of the Procurement Act 2023, the Council must allow a minimum of eight working days, starting the day this contract award notice is published and the award of the contract.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-052272
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/026935-2026
Current Stage
Award
All Stages
Planning, Tender, Award

Procurement Classification

Notice Type
UK6 - Contract Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Selective
Procurement Method Details
Competitive flexible procedure
Tender Suitability
SME, VCSE
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

09 - Petroleum products, fuel, electricity and other sources of energy

45 - Construction work

65 - Public utilities

71 - Architectural, construction, engineering and inspection services

CPV Codes

09323000 - District heating

45000000 - Construction work

65000000 - Public utilities

71314000 - Energy and related services

71500000 - Construction-related services

Notice Value(s)

Tender Value
£250,000,000 £100M-£1B
Lots Value
£250,000,000 £100M-£1B
Awards Value
£300,000,000 £100M-£1B
Contracts Value
Not specified

Notice Dates

Publication Date
24 Mar 20265 months ago
Submission Deadline
Not specified
Future Notice Date
27 Jun 2025Expired
Award Date
24 Mar 20265 months ago
Contract Period
13 Apr 2026 - 13 Apr 2069 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
Wirral 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
WALLASEY
Postcode
CH44 8ED
Postcode Area
Chester
Country
England
Major Region (ITL 1)
TLD North West (England)
Basic Region (ITL 2)
TLD7 Merseyside
Small Region (ITL 3)
TLD74 Wirral
Delivery Location
TLD74 Wirral
Local Authority
Wirral
Electoral Ward
Seacombe
Westminster Constituency
Wallasey

Supplier Information

Number of Suppliers
1
Supplier Name

VITAL ENERGI UTILITIES 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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