Oxford is set to significantly reduce its reliance on fossil fuels with the development of a major low-carbon heat network, backed by £21 million ($28 million) in government funding and around £100 million ($135 million) in private investment. The Oxford Energy Network, led by energy company 1Energy, is designed to support the city’s net zero goals by delivering clean heat to historic buildings and institutions.
The project is expected to cut gas demand by 10% and reduce carbon emissions by 15,000 tonnes annually once operational. Heat will be supplied via underground pipes using technologies such as air-source heat pumps, enabling the city to transition away from gas boilers without altering its architectural heritage.
Initial funding includes £21 million from the UK’s Green Heat Network Fund (GHNF), with more than 80% of the capital—£100 million—provided by the DHUK UK Fund, managed by Asper Investment Management. Total investment is projected to exceed £500 million by 2050 as the network expands city-wide.
Construction is planned to begin in 2026, pending planning approvals and community engagement. Project partners include Oxford City Council, Oxfordshire County Council, the University of Oxford, and the Zero Carbon Oxfordshire Partnership.
“This network is perfectly matched to Oxford’s complex needs,” said Andrew Wettern, CEO of 1Energy. “Oxford’s historic character makes decarbonisation uniquely challenging. This network will be silent, invisible, and compatible with listed buildings, offering an easier and more affordable path for customers.”
In addition to its climate benefits, the project aims to improve public health by cutting air pollutants such as nitrogen and sulphur oxides by 168 tonnes over two decades—the equivalent of removing 7,000 domestic gas boilers. A community benefit task group will also explore how the network can support local employment and tackle fuel poverty.
1Energy is targeting £1 billion in investments for similar low-carbon heat projects across the UK, positioning Oxford’s model as a potential blueprint for historic cities aiming to decarbonise.
