---
title: "Byker District Heat Network Decarbonation"
ocid: "ocds-h6vhtk-06bd8c"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-06bd8c"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-06bd8c.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-06bd8c.json"
source: "Find A Tender Service"
current_stage: "Planning"
buyer: "KARBON HOMES"
published: "2026-06-25"
---

# Byker District Heat Network Decarbonation

Buyer: KARBON HOMES  
Current stage: Planning  
OCID: ocds-h6vhtk-06bd8c

[View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-h6vhtk-06bd8c)  
[Download OCDS JSON](https://d3tenders.com/contract/ocds-h6vhtk-06bd8c.json)

## Summary

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.

## Notice

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

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/060054-2026 |
| 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 |
| All stages | Planning |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 25 Jun 2026 |
| Submission deadline | Not specified |
| Future notice date | 30 Sep 2026 |
| Award date | Not specified |
| Contract period | 1 Mar 2027 - 1 Apr 2047 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Planning |
| Lots status | Planning |
| Awards status | Not specified |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | KARBON HOMES |
| Locality | NEWCASTLE UPON TYNE |
| Post town | Newcastle upon Tyne |
| Postcode | NE12 8EG |
| Country | England |
| ITL 1 | TLC North East (England) |
| ITL 2 | TLC4 Northumberland, Durham and Tyne & Wear |
| ITL 3 | TLC43 Tyneside |
| Local authority | North Tyneside |
| Electoral ward | Longbenton & Benton |
| Westminster constituency | Newcastle upon Tyne North |
| Delivery location | TLC2 Northumberland, and Tyne and Wear |

## CPV Codes

### Divisions

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

### Codes

- 09323000 - District heating
- 45232140 - District-heating mains construction work
- 45251250 - District-heating plant construction work

## Release History

- 25 Jun 2026 at 17:28 - Planning - UK2 - Preliminary Market Engagement Notice - https://www.find-tender.service.gov.uk/Notice/060054-2026

## Documents

- https://www.find-tender.service.gov.uk/Notice/060054-2026
  25th June 2026 - Preliminary market engagement notice on Find a Tender

## Notice URLs

- https://app.panacea-software.com/KarbonHomes/
- https://www.karbonhomes.co.uk/
- https://www.legislation.gov.uk/ukpga/2023/54/contents

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-06bd8c. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-06bd8c.json.