ESP & Veolia

ESP & Veolia

Collaborating to Deliver Low-Carbon Heat Networks Across the UK.

ESP Utilities Group have announced a strategic collaboration with Veolia to accelerate the delivery of low-carbon heat networks across the UK.

Under the agreement, Veolia will operate and maintain and design & build the heat networks, while ESP Utilities Group will adopt and own the heat network assets, ensuring long-term investment and reliability for customers and communities.

This collaboration brings together two well regarded, highly experienced organisations with exceptional reach and capability.

Veolia, a global leader in environmental solutions, has a proven track record in energy infrastructure, with deep technical expertise in designing and operating complex low-carbon energy systems.

ESP Utilities Group, a trusted multi-utility network owner & operator, brings a robust asset ownership model and a strong track record of working with developers and local authorities to deliver critical utility infrastructure.

Veolia brings over 50 years of experience operating in the UK, with unparalleled service credentials and a portfolio of over 5 million district heating customers across Europe.

The company delivers cutting-edge low-carbon projects—from large-scale heating and cooling networks such as SmartParc SEGRO Derby – District Heating and Cooling to 5th generation heat systems such as the Paris-Saclay innovation district, and ground-source heating for critical UK infrastructure, including hospitals and health campuses.

This offers a powerful proposition for developers, local authorities and stakeholders aiming to meet the UK’s net zero targets. Supported by operational centres in every region of the UK, together we can commit to market-leading response times for critical callouts, that exceed all regulatory requirements ensuring that potential issues are swiftly resolved to minimise disruptions and maintain system integrity.

Together, Veolia and ESP unlock a funded, end-to-end heat network solution—designed and operated by a world-class provider and underpinned by long-term asset stewardship.

 

 John Abraham, Chief Operating Officer of Veolia UK & Ireland, said:

“We’re proud to work with ESP Utilities Group to accelerate the deployment of low-carbon heating networks across the UK. These local loops of energy are a critical part of Veolia’s GreenUp strategic plan, to help accelerate progress towards our decarbonisation targets. By combining Veolia’s operational excellence with ESP’s network adoption expertise, we can offer a compelling, funded, scalable solution for the UK’s low-carbon future.”

 

Kevin O’Connor, CEO of ESP Utilities Group, added:

“This collaboration strengthens our position at the forefront of sustainable infrastructure. Our model of long-term ownership, combined with Veolia’s outstanding operational capability, creates a complete solution for customers that de-risks project delivery and supports the journey to net zero.”

 

ESP and Veolia are already in advanced discussions on several major schemes and will focus on delivering heat networks that are resilient, efficient, and built for the future.

Heat networks have huge potential to decarbonise the UK, as currently heat accounts for 37% of the UK’s emissions.

The Heat Networks Industry Council estimates that heat networks could save 15M tonnes of CO2e by 2050.

The introduction of the Energy Act in 2026 will strengthen consumer protection, performance and fair pricing and help accelerate heat network developments in the UK.

 

For more information, please contact commercialteam@espug.com

 

September 2025