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Byker District Heat Network Decarbonation

KARBON HOMES

This public procurement record has 1 release in its history.

Planning

25 Jun 2026 at 17:28

UK2 - Preliminary Market Engagement Notice
Summary of the contracting process

Karbon Homes, a public undertaking based in Newcastle upon Tyne, is initiating the planning phase of a procurement process titled "Byker District Heat Network Decarbonation." This project focuses on decarbonising the Byker District Heat Network, serving a Grade II* listed social housing estate. Currently in the commercialisation phase, with grant funding secured, this procurement process involves transitioning from a gas-fired plant to a low-carbon solution utilising large-scale water-source heat pumps. Key upcoming dates include the issue of SMT and prospectus in July 2026, market engagement sessions in August 2026, with the procurement launch anticipated between August and September 2026. The construction is set to commence in April 2027, targeting a project operational phase from 2028 onward.

This procurement process offers substantial growth opportunities for energy services companies and contractors specialising in district heat network design, build, finance, and operation. Companies with expertise in navigating live, heritage-listed environments will find a potential advantage. Prospective partners are expected to contribute to formulating appropriate commercial and contracting structures. Engaging in this process could lead to long-term collaboration with Karbon Homes, enhancing their portfolio in sustainable energy solutions. Interested businesses should register their interest via the e-Sourcing Portal, a step that allows access to a Soft Market Testing Questionnaire for further engagement.

How relevant is this notice?

Notice Information

Notice Title

Byker District Heat Network Decarbonation

Notice Description

Project overview Karbon Homes is progressing the decarbonisation of the Byker District Heat Network in Newcastle upon Tyne, a Grade II* listed social housing estate of around 80 hectares, with more than 2,000 connected homes served by the Walker Road Energy Centre and twelve substations. The project is in its commercialisation (pre-procurement) phase, with grant funding secured for this stage. Karbon is supported by HNDC as commercialisation and technical adviser. The opportunity Karbon intends, in due course, to appoint a delivery partner, anticipated to be an Energy Services Company (ESCo), to transition heat generation from the existing gas-fired plant to a low-carbon solution. The solution is currently developed around large-scale water-source (river) heat pumps with thermal storage. The commercial and procurement structure is still being finalised, and this engagement will help inform it. This notice does not commence a procurement or call for competition. Scope of the soft market testing We welcome responses from organisations with capability across the design, build, financing and operation of district heat networks, including potential ESCo partners, EPC / DBOM contractors, and specialist sub-contractors. A Soft Market Testing Questionnaire is available on request and invites views on: * relevant experience and capability in comparable schemes; * appetite for delivery in a live, occupied, heritage-listed residential environment; * appropriate commercial and contracting structures, and parent company guarantee / security positions. How to register interest To take part, or to receive the Questionnaire, please register with our e-Sourcing Portal https://app.panacea-software.com/KarbonHomes/ Should you require technical support with the e-Sourcing portal please email them directly at: * Email: support@panacea-software.com * Phone: 0207 976 0116 Submissions must be via the above e-Sourcing portal. Submitted via postal, or email methods will not be accepted.

Planning Information

Indicative Timeframes The following indicative timeframes are set out to inform respondents. They are subject to refinement based on SMT feedback and GHNF funding conditions. 1. Issue of SMT and prospectus: July 2026 2. SMT response deadline: 17th July 2026 3. Market engagement sessions (1:1 / group): August 2026 4. Publication of refined opportunity shape / procurement strategy: August 2026 5. Procurement launch: August – September 2026 6. Preferred partner identified: September 2026 7. Contract award / financial close: March 2027 8. Construction commencement: April 2027 9. GHNF construction spend-by deadline: Financial Year End 2028 10. Scheme in service / operational handover: 2028 Onward

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-06bd8c
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/060054-2026
Current Stage
Planning
All Stages
Planning

Procurement Classification

Notice Type
UK2 - Preliminary Market Engagement Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Not Specified
Procurement Method Details
Not specified
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

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

45 - Construction work

CPV Codes

09323000 - District heating

45232140 - District-heating mains construction work

45251250 - District-heating plant construction work

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
25 Jun 20262 weeks ago
Submission Deadline
Not specified
Future Notice Date
30 Sep 20263 months to go
Award Date
Not specified
Contract Period
1 Mar 2027 - 1 Apr 2047 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Planning
Lots Status
Planning
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
KARBON HOMES
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
NEWCASTLE UPON TYNE
Postcode
NE12 8EG
Post Town
Newcastle upon Tyne
Country
England
Major Region (ITL 1)
TLC North East (England)
Basic Region (ITL 2)
TLC4 Northumberland, Durham and Tyne & Wear
Small Region (ITL 3)
TLC43 Tyneside
Delivery Location
TLC2 Northumberland, and Tyne and Wear
Local Authority
North Tyneside
Electoral Ward
Longbenton & Benton
Westminster Constituency
Newcastle upon Tyne North

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

JSON Markdown

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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