UKC2 Northumberland and Tyne and Wear (UK UNITED KINGDOM)
Description:
Karbon Homes is seeking responses from organizations capable of designing, building, financing, and operating a low-carbon solution for the Byker District Heat Network, transitioning from gas-fired generation to water-source heat pumps, as part of a soft market testing phase.
Project overview Karbon Homes is progressing the decarbonisation of the Byker District Heat Network in Newcastle upon Tyne, a Grade II* listed social housing estate of around 80 hectares, with more than 2,000 connected homes served by the Walker Road Energy Centre and twelve substations. The project is in its commercialisation (pre-procurement) phase, with grant funding secured for this stage. Karbon is supported by HNDC as commercialisation and technical adviser. The opportunity Karbon intends, in due course, to appoint a delivery partner, anticipated to be an Energy Services Company (ESCo), to transition heat generation from the existing gas-fired plant to a low-carbon solution. The solution is currently developed around large-scale water-source (river) heat pumps with thermal storage. The commercial and procurement structure is still being finalised, and this engagement will help inform it. This notice does not commence a procurement or call for competition. Scope of the soft market testing We welcome responses from organisations with capability across the design, build, financing and operation of district heat networks, including potential ESCo partners, EPC / DBOM contractors, and specialist sub-contractors. A Soft Market Testing Questionnaire is available on request and invites views on: * relevant experience and capability in comparable schemes; * appetite for delivery in a live, occupied, heritage-listed residential environment; * appropriate commercial and contracting structures, and parent company guarantee / security positions. How to register interest To take part, or to receive the Questionnaire, please register with our e-Sourcing Portal https://app.panacea-software.com/KarbonHomes/ Should you require technical support with the e-Sourcing portal please email them directly at: * Email: support@panacea-software.com * Phone: 0207 976 0116 Submissions must be via the above e-Sourcing portal. Submitted via postal, or email methods will not be accepted.
Indicative Timeframes The following indicative timeframes are set out to inform respondents. They are subject to refinement based on SMT feedback and GHNF funding conditions. 1. Issue of SMT and prospectus: July 2026 2. SMT response deadline: 17th July 2026 3. Market engagement sessions (1:1 / group): August 2026 4. Publication of refined opportunity shape / procurement strategy: August 2026 5. Procurement launch: August – September 2026 6. Preferred partner identified: September 2026 7. Contract award / financial close: March 2027 8. Construction commencement: April 2027 9. GHNF construction spend-by deadline: Financial Year End 2028 10. Scheme in service / operational handover: 2028 Onward