The Torry Heat Network will supply heat for flats in the three high rises at Morven Court, Brimmond Court, and Grampian Court, community centres, Tullos Primary School, Balnagask Court, Provost Hogg Court, Balnagask House and about 150 homes in Balnagask Circle, Balnagask Court, and the Farquhar Road stub blocks.
The heat will be supplied by the energy from waste plant which has been constructed in East Tullos industrial estate to dispose of non-recyclable waste from Aberdeen City, Aberdeenshire and Moray Councils.
Aberdeen City Council Co-Leader Councillor Ian Yuill said: "The Torry Heat Network will help Aberdeen reach net zero by providing energy to homes and public buildings in a sustainable way.
"I look forward to watching the rest of the work progress in the coming months."
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Aberdeen City Council Co-Leader Councillor Christian Allard said: "We welcome the Scotland's Heat Network Fund grant towards the new Torry Heat Network as the project will bring low-cost heat to tenants' homes and public buildings.
"The network will help people with fuel poverty providing them with the low-cost energy that they need in the middle of a cost of living crisis."
The Scottish Government grant is from Scotland's Heat Network Fund which is making £300 million available to support the roll out of heat networks with the aims of reducing greenhouse gas emissions and providing affordable heat for consumers.
Zero Carbon Buildings Minister Patrick Harvie said: "Heat networks or communal heat systems will have a growing role in helping us move away from fossil fuel heating by 2045 whilst reducing fuel poverty by supplying heat at affordable prices to consumers. The Torry Heat Network shows the potential for decarbonising existing urban buildings, including hard-to-treat granite tenements.
"We believe we can meet up to 30% of our overall heat demand from heat networks, which is why our Heat in Buildings consultation includes measures to encourage their growth, giving developers and local authorities the confidence to invest on the basis that they know the demand will be there."
As well as work to streets to install the more than 3.7 miles of underground pipes, the project also includes new internal installations, heat metering, and heat supply pipes to the interior of buildings.
The main heat distribution pipes from the heat distribution facility are routed underneath the main North East railway line to connect with the existing heating network in Torry.
The main contractor for the design and construction work is Vital Energi which is undertaking local stakeholder engagement in conjunction with Barhale as the specialist tunnelling design and build contractor. Aberdeen Heat and Power is doing stakeholder engagement for the heat supply works to the 500 homes.
