A new energy centre has opened in Midlothian, marking a significant step towards delivering low-carbon heat to thousands of homes in the region.

The centre, developed by Midlothian Energy Limited (MEL), a partnership between Midlothian Council and Vattenfall, will initially use processed waste vegetable oil (HVO) to provide heat to around 3,000 homes, schools, and businesses in the Shawfair development.

In the future, the centre will be connected to the Millerhill Recycling and Energy Recovery Centre, allowing it to capture and utilise low-carbon heat generated from waste.

This project represents a major milestone in the transition to a low-carbon future and demonstrates the potential for innovative energy solutions to reduce carbon emissions and improve energy efficiency.

MEL has received £7.3m funding from the Scottish government's Low Carbon Infrastructure Transformation Project to develop the heat network. This has unlocked over £40m of private investment into the joint venture.

Construction of the heat network began in early 2023 and MEL hopes to be delivering heat soon to the first few properties. More homes will be gradually connected to the heat network in the coming years as developers sign connection agreements at Shawfair.

Shawfair Town, being developed by Shawfair LLP, is one of Scotland's largest new development projects. It will have three new schools, extensive cycling and walking networks and large areas of public open space – as well as retail, business and community facilities.


Midlothian Council Leader, Councillor Kelly Parry said: "The opening of the centre is an exciting new phase and a significant milestone in our ambitious net zero plans and commitment to reducing fuel poverty for local people. By working in partnership with Vattenfall to serve local communities with low carbon, reliable heat, we really will be changing lives for the better."

Ian Meyer, Vattenfall's Interim Director of Heat Networks in Scotland said: "Opening the MEL energy centre is fantastic news with residents of Shawfair Town set to benefit from low carbon heating. Working with our partners at Midlothian Council and FCC, the collaboration underscores our shared commitment to deliver sustainable energy solutions.

"Heat networks are vital for a sustainable future, cutting carbon emissions, increasing energy efficiency, and providing Shawfair residents with a convenient and simple way to heat their homes."

Acting Minister for Climate Action Alasdair Allan said: "Heat networks have a major role to play in supporting Scotland's heat transition. I'm very pleased therefore that the Scottish Government has been able to help this important project come to fruition through our Low Carbon Infrastructure Transformation Programme.

"This is an excellent example of the importance of attracting private investment for such projects, and it is essential that we keep working together to deliver more low carbon heat networks and communal heating systems.

"We continue to build on this work through Scotland's Heat Network Fund, which aims to stimulate and accelerate the delivery of heat networks that will supply affordable, reliable and clean heat, supporting the Scottish Government's objectives to eradicate fuel poverty and take action on climate change."

Heat networks are an essential means of decarbonising heating and hot water on a city-wide scale. They supply multiple properties with heating and hot water, rather than each property having to generate its own – for instance with a gas boiler or heat pump. The heating and hot water are distributed by an underground pipe system to the buildings that are connected to the network.

These individual homes and buildings still control the heating and hot water in their home, just as they would if they had their own heating system. It is a more efficient and low carbon way of providing heating and hot water to homes and businesses, especially when the heat comes from renewable and low carbon sources.