Issue - decisions

Worthing Heat Network

11/10/2021 - Carbon Neutral 2030: Worthing Heat Network: progress update

Before the Committee was a report by the Interim Director Digital, Sustainability and Resources, copies of which had been circulated to all Members and a copy of which is attached to the signed copy of these minutes as Item 8.

 

The report set out the progress made since March 2021 to deliver a flagship heat decarbonisation scheme in the centre of Worthing.

 

The proposal would enable 8 council-owned buildings, multiple other public sector buildings (WSCC, MoJ, NHS and Sussex Police) along with major development sites to switch to very low-carbon heat in a cost effective manner.

 

The report updated members that the funding application to the Heat Network Investment Programme (HNIP), submitted following the Joint Strategic Committee meeting in March, had been successful and that council had been awarded the following amounts:

 

? £950,000 grant funding for Commercialisation;

? £3.158m grant monies for Construction; plus

? £1.275m loan funding (at 0.01% interest) for construction.

 

Delegated authority had been given to the Director for Digital, Sustainability & Resources to accept this funding in March 2021. Officers were currently working on finalising the Grant and Loan agreements ahead of officially accepting the award and drawing down the commercialisation funding.

 

The proposed next steps for this project were set out in the report with Members' continued endorsement being sought to the approach, ahead of a further report detailing the conclusion of the procurement process.

 

The recommendation was proposed by Councillor Daniel Humphreys, seconded by Councillor Kevin Jenkins and unanimously supported.

 

Decision

 

The Joint Strategic Committee

 

1.     noted the receipt of funding under a Grant Funding Agreement from HNIP, totalling £950,000 for the Commercialisation Phase of the Heat Network and, subject to Conditions set by HNIP being met during the Commercialisation phase, approved the further receipt of:

 

                         i.         £3.158m grant monies for Construction; plus

                       ii.         £1.275m loan funding (at 0.01% interest) for construction.

 

2.     authorised the Director for Digital, Sustainability and Resources to enter into the HNIP Funding Agreements;

3.     noted and endorsed the next steps for the Worthing Heat Network;

4.     approved an amendment of the 2021/22 revenue budget by £950,000 to fund the commercialisation element of the project;

5.     approved the amendment of the 2022/23 capital programme for a contribution of £4.433m towards the construction of a heat network;

6.     authorised the Director for Digital, Sustainability and Resources to enter into any contracts for expenditure of HNIP funding to progress the two phases of the Heat Network delivery; and

 

7.     requested that a further updating report be brought to the Committee prior to the commencement of the procurement process.                        

 

Call In:

 

The call-in deadline for decision will be 5.00pm on 18 October 2021.