Oxford is set to reduce its reliance on fossil gas by 10% and cut carbon emissions by 15,000 tonnes a year through a new low-carbon heat network backed by a £121 million investment package.
The Oxford Energy Network, led by clean energy developer 1Energy, will deliver low-carbon heating to some of the city’s most iconic buildings, including grade I listed heritage sites, while tackling air pollution, fuel poverty and climate-related health risks.
The project combines £21 million in government funding with £100 million in private investment for its first phase, with potential total investment exceeding £500 million as the network expands in the years ahead.
Construction is expected to begin in 2026, following public consultation and planning approval.
Decarbonising a Historic City
With more than 1,500 listed buildings, Oxford faces unique challenges in reducing emissions without damaging its architectural heritage. The new heat network will allow buildings to switch from gas boilers to low-carbon heat through underground, water-filled pipes, providing an invisible, silent, and energy-efficient alternative.
Heat networks work by pumping hot water through underground pipes to provide heating without the need for individual gas boilers. This makes them one of the simplest and fastest ways to decarbonise cities, with minimal disruption or retrofitting required for older buildings.
The first stage of the network will focus on organisations with high energy demand, helping to cut Oxford’s overall gas usage by 10% and reduce emissions from connected buildings by up to 81%.
Air pollution, a major contributor to respiratory illness, is also set to decline by 5%, according to projections.
Backed by Oxford’s Leading Institutions
1Energy is working closely with a coalition of local partners including Oxford City Council, Oxfordshire County Council, the University of Oxford, Oxford Brookes University, and the Zero Carbon Oxfordshire Partnership (ZCOP) to deliver the network in line with the city’s net-zero ambitions.
The company is using mission-driven, sustainability-focused private investment, known as ‘deep green capital’, to fund the project, ensuring environmental and social priorities are embedded from the outset.
Andrew Wettern, CEO of 1Energy, said:
“Oxford is already at the very forefront of city decarbonisation and low carbon energy through the work of the University, and the Zero Carbon Oxfordshire Partnership and its constituent members. We are thrilled to add to this success by enabling the city to decarbonise heat through the Oxford Energy Network.”
“Oxford has more than 1500 listed buildings across the city, so the decarbonisation challenge for Oxford is much harder than many other cities. The Oxford Energy Network matches perfectly to the challenge because it will be invisible and silent, it will supply the temperatures required by these historic buildings to maintain their warmth in the winter, and it will be easier and cheaper for customers to connect to the network than to create their own low-carbon heat onsite.”
“By using the Oxford Energy Network as a model for other historical cities and towns, we can deliver heat decarbonisation in a way that preserves our heritage, across many more cities and towns at pace.”
Health, Affordability, and Jobs
As part of the development, 1Energy has set up a Community Benefit Task Group, bringing together local institutions to ensure the network benefits residents beyond carbon savings.
Plans include support for community projects, initiatives to tackle fuel poverty, and efforts to create local employment opportunities as the network grows.
Beyond Oxford, 1Energy has ambitions to invest £1 billion across the UK over the next eight years, developing similar heat networks in other cities to help them decarbonise while preserving historic infrastructure.
Why Heat Networks Matter
Heat networks are one of the fastest and most cost-effective ways to decarbonise buildings, especially in dense urban areas. By using a centralised energy source, they reduce the need for individual retrofits, cut down on maintenance costs, and shield institutions from future gas price volatility.
Oxford’s leadership in low-carbon innovation is already well known through initiatives like the Zero Emission Zone, ZCOP, and world-leading university research on sustainability. The Oxford Energy Network will now build on this momentum with real-world infrastructure.
What Happens Next?
The first phase of the project will be delivered between 2026 and 2028, with community engagement beginning this year. Residents and stakeholders will be invited to share feedback during the planning process.
As Oxford moves toward its net-zero target, this project represents a major milestone in both infrastructure and climate resilience and could soon serve as a model for other cities across the country.
