The Royal Borough of Kingston Upon Thames (RBK) has gone out to tender for a Development Partner for a district heat network using waste heat from Thames Water’s Hogsmill Sewage Treatment Works with an estimated value of £432 million (inc VAT).

RBK are conducting thetrocurement to select a Development Partner to develop a district heat network in the Kingston Potential Zone Area and, subject to receipt of the necessary approvals, to deliver the Network using the Development Partner's chosen corporate vehicle.

The Network is intended to operate as part of Kingston's strategic and essential utility infrastructure, designed to supply affordable, low - carbon heat to homes and public buildings. The Network is expected to achieve significant reductions in carbon emissions compared with conventional gas - based heating, improved local air quality through reduced combustion, and increased use of locally sourced low - carbon energy. By providing a centralised, efficient heat solution, the Network will support the Authority's ambition to achieve borough - wide carbon neutrality by 2038 and net - zero Authority operations.

RBK has already carried out technical and commercial feasibility work that confirms the potential for the Reference Scheme to be a viable, scalable heat network. The Reference Scheme assumes the use of waste heat from the Thames Water Hogsmill Sewage Treatment Works and is planned to connect Cambridge Road Estate, Kingston Hospital, Kingston University's Penrhyn Road campus, and the new Kingston Leisure Centre, with the potential for future expansion into Kingston Town Centre and surrounding areas as Subsequent Phases.

RBK is looking to appoint a Development Partner to, as a first step, take forward the detailed technical design, advance the commercial and financial modelling (through the delivery of development services under the Development Agreement).

The Development Partner will not be required to design the Reference Scheme and can instead deliver another scheme, provided that scheme meets the Mandatory Requirements (as detailed in the Development Agreement). The Reference scheme has a value of £33 million exclusive of VAT.

The project adopts the DESNZ AZP 'Golden Share' delivery model, split into two distinct phases:

• Phase 1 (Development Services): The successful partner will enter into a Development Agreement (a services contract with a nominal £1 fee) to deliver detailed technical design and financial modelling.
• Phase 2 (Project Delivery): Subject to the project passing the "Approvals Gateway," the parties will enter into a Shareholders' Agreement and Articles of Association. This phase is treated as a Concession Contract for the construction, operation, and maintenance of the Network.

If Financial Close occurs, RBK will enter into a Shareholders' Agreement and establish a single supplier framework. The contracting authorities and parties listed below are identified as being entitled to award call-off contracts, specifically Connection and Supply Agreements (CSAs), to buy heat and hot water from the Network:

• The Royal Borough of Kingston upon Thames
• Kingston University Higher Education Corporation
• Kingston and Richmond NHS Foundation Trust (formerly Kingston Hospital NHS Foundation Trust)
• Places For People Leisure Management Limited, in its capacity as the operator of the Kingston Leisure Centre on behalf of the Authority.

In addition, the Authority intends to award the Cambridge Road Estate Connection and Supply Agreement, giving rise to a concession contract, which provides for the supply of heat and hot water from the Network to the Cambridge Road Estate.

The Authority reserves the right to modify the contract in the event any known risks materialise – including any delays or technical changes to the Thames Water heat offtake agreement.

The indicative procurement dates for the opportunity are:

• 26th May 2026 at 12:00 - Deadline for receipt of PSQ Responses
• 10th July 2026 - Shortlisted suppliers invited to submit Interim Tender Responses
• 11th September at 12:00noon - Deadline for receipt of Interim Tender Responses
• 4th January 2027 - Issue Invitation to Submit Final Tender
• 8th February 2027 at 12:00noon GMT - Deadline for receipt of Final Tender Responses
• 30th June 2027 - Assessment summaries & Contract Award Notice issued
• 31st August 2027 - Contract signature

The Royal Borough of Kingston is requesting that potential Suppliers review and sign a Non-Disclosure Agreement to be able to access the full tender documentation including PSQ, ITT, Contractual Documentation, Lease HoT, and the Data Pack. Potential Suppliers who wish to access the PSQ, along with the full tender information, should sign and return an NDA that can be accessed via the e-tender portal, by following the link from this advert.

Current estimated start and end contract dates are1 September 2027 to 31 August 2068.

Deadline for submission of enquiries about the tender is 12:00pm on 12 May 2026, and deadline for requests to participate is 12:00pm on 26 May 2026.

Click here for more information, associated tender documents, submission address and any special instructions

Contact details at Royal Borough of Kingston Upon Thames for any enquiries – email address provided is: This e-mail address is being protected from spambots. You need JavaScript enabled to view it