Issue - meetings

Background:

This report set out a detailed Project Phase Development Proposal for the establishment of a Low Carbon Heat Network in Chatham, which would also cover an area of Gillingham. This would be a significant, four-year project, which would aim to achieve an expected reduction of 7,600 tonnes of carbon per year and would help Medway to achieve its commitment to being Net Carbon Zero by 2050.

The report advised that the project had completed a Techno-Economic Feasibility study and would require up to £60k of Council funding to complete the Detailed Project Development phase. That phase would incorporate an outline business case which would address key risks, conduct soft market testing and develop the delivery and commercial strategy. It was anticipated that the future Heat Network delivery phases would be extensively financed by private investment and government funding.

The report was accompanied by three Exempt Appendices. These set out a Feasibility Study and related documents.

Reasons:

For up to £60k of funding Medway would access £180k of work. Project Management fees are also paid for by BEIS. The DPD phase could show that the CHN would have significant benefit in terms of carbon reduction helping Medway achieve net carbon zero and socio-economic benefits, while addressing some of the current risks.