Veolia has launched a pan-European 'Ecothermal Grid' programme to support the decarbonisation of district heating networks at a time when cities face growing energy demand and long-term energy insecurity.
Heat represents around half of all energy consumed in Europe and remains one of the most challenging sectors to decarbonise.
The International Energy Agency estimates that nearly two-thirds of heating demand is still met by fossil fuels, while cities account for roughly 80 per cent of global CO₂ emissions.
We are strengthening our ambition to lead European district heating by 2030.
With energy markets volatile and local infrastructure stretched, district heating is becoming central to strategies to stabilise supply and reduce dependence on imported fuels.
Estelle Brachlianoff, Chief Executive Officer of Veolia, says: “In the context of cities facing growing energy challenges due to the 2022 energy crisis and rapid urbanisation, and in line with our GreenUp strategic program, we are strengthening our ambition to lead European district heating by 2030 supported by the launch of the new Ecothermal Grid offer.
"It is aimed at scaling up innovative technologies, including AI, for the next generation urban heat & cold networks.”
“It is strategically built upon our powerful ‘stronghold’ in operating Thermal Energy Networks, which is essential to accelerating the decarbonisation and the energy resilience of cities.
It leverages Veolia's unique expertise in waste, water and energy services to offer an integrated cost efficient solution.”
The European district heating market, valued at €60 billion in 2023, is forecast to reach €80 billion by 2030.
Regulatory requirements, long-term net-zero targets and rising city-level demand are all accelerating interest in low-carbon heat systems.
Veolia already operates around 500 heating networks across Europe with an average efficiency of 88 per cent and says its activities reduced nearly two million tonnes of CO₂ between 2021 and 2024.
The new platform covers the full lifecycle, from source identification and engineering to construction and long-term operations.
Veolia expects it to generate around €350 million in turnover by 2030.
Ecothermal Grid has been designed as a flexible platform for upgrading existing heat networks and developing new ones.
The model brings together multiple low-carbon heat sources including geothermal systems, biomass and biogas facilities, solar thermal installations, advanced heat pumps, electric boilers and waste-heat recovery from industry and data centres.
It also incorporates energy storage to reduce peak demand and digital optimisation tools to manage heat flows and improve operational efficiency.
Visit https://veolia.com.
Despite strong momentum, several conditions remain essential for accelerating large-scale deployment across Europe.
These include prioritising local energy sources to reduce dependence on imported fuels, speeding up permitting for major energy infrastructure, expanding geothermal guarantee funds and ensuring long-term regulatory stability aligned with the lifespan of district heating assets.
In northern European countries including Denmark and Sweden, district heating already serves the majority of homes in many cities, supported by long-term planning and connection requirements.
Across much of the rest of Europe, systems are more fragmented, often relying on outdated assets that require significant modernisation.
In the UK, the deployment of Ecothermal Grid is supporting a pipeline of district heating projects valued at £1 billion that are due to be awarded by 2030.
Heating in buildings accounts for more than a third (37 per cent) of the country’s CO₂ emissions, yet only around 3 per cent of UK heat demand is currently supplied via district heating networks.
Government policy aims to increase this to 20 per cent by 2050, creating strong demand for new infrastructure.
The potential market value for district heating in the UK is estimated at around £80 billion.
Veolia says its UK programme includes £210 million in confirmed projects for 2025 and a wider pipeline across London, Wiltshire, Bristol, Yorkshire and Cambridgeshire.
One of the largest schemes is the expansion of the Southwark 2.0 District Heat Network in London.
Phase One has been completed, extending a system that recovers heat from Veolia’s energy-from-waste facility.
The network currently supplies more than 2,500 homes and avoids around 8,000 tonnes of CO₂ each year.
Once fully extended, it will supply nearly 7,000 homes and save an additional 14,000 tonnes of CO₂ annually.
Phase Two is expected to begin in March 2026, subject to approval.
Veolia has also been selected as the preferred partner for a fifth-generation heating and cooling network at the Wellcome Genome Campus in Cambridgeshire.
The campus is expanding from 125 to 440 acres and will integrate geothermal heat with waste heat from a data centre to support research, innovation and operational continuity.
Gavin Graveson, Senior Executive Vice President, Northern Europe Zone, comments: “Veolia is investing heavily in new and existing heating networks.
To encourage further investment in decarbonized heat in line with its 2050 targets, the government could use the UK Emissions Trading System (ETS) to incentivise electricity producers to supply local heating networks.
“Once the infrastructure is in place, the networks must also be fully utilized to optimize their profitability and carbon efficiency.
Mandatory connections would guarantee operators stable demand.”
Ecothermal Grid: A Unified Platform for Modernisation and Expansion
It is aimed at scaling up innovative technologies, including AI…
Veolia positions the model across the entire value chain, from identifying energy sources to building and optimising networks. Key Elements
- Advanced technologies for identifying and integrating renewable and waste heat sources, including geothermal systems, biomass and biogas facilities, solar thermal installations and electric boilers.
- Solutions for decarbonising existing networks without service disruption, and for developing new systems in expanding urban areas.
- Processes for recovering heat from industrial facilities, data centres and other local sources.
- Energy storage solutions to ensure network reliability and smooth peak demand.
- Digital and AI capabilities that optimise district heating performance and management.
- Advisory and engineering support for cities, private operators and campus facilities.
Visit https://veolia.com.
