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Investment supports acquisition of Gloucestershire Science and Technology Park, advancing Vital Energi’s £1bn+ investment pipeline and asset growth strategy

Sustainable energy solutions company Vital Energi has made a strategic investment in Chiltern Vital Group (CVG), significantly expanding its capability to own and operate energy generation and storage assets to feed into networks at scale.

This strategic move is part of Vital Energi’s ambitious £1bn+ investment pipeline, aimed at significantly expanding its portfolio of sustainable energy assets and reinforcing its position as a key player in the UK’s transition to a low-carbon future. The investment in CVG, coupled with CVG’s purchase of the Gloucestershire Science and Technology Park in Berkeley, marks a major milestone in Vital Energi’s asset ownership journey.

The 40-acre Berkeley site, formerly an active power plant until 1989, will be transformed into a hub for research, education, and innovation in sustainable energy technologies, with a focus on large-scale energy networks. The site has a rich history as one of the world’s first civil nuclear power stations, with an adjoining nuclear research laboratory that played a key role in developing the UK’s nuclear fuel programme.

Vital Energi plans to collaborate with leading educational institutions to foster skills development in the sector, ensuring long-term, high-value employment opportunities amounting to hundreds of regional jobs for the local community. Key partners in this endeavour include the University of Bristol, the National College for Nuclear, Berkeley Green University Technical College (UTC), and SGS College. By combining cutting-edge research with practical skills training, Vital Energi aims to create a talent pipeline that will drive innovation in energy network solutions for years to come.

The site is earmarked for the development of small modular reactors (SMRs), with companies like Rolls-Royce SMR expressing interest in locating their operations at Berkeley. This aligns with the UK government’s plans to advance nuclear energy technology and combat climate change.

Chris Turner, CEO of Chiltern Vital Group, added:

“Vital Energi’s expertise in energy infrastructure, combined with the company’s investment, adds tremendous value to this project. Together, we will drive forward the development and implementation of large-scale energy networks. We anticipate this collaboration will have significant positive impacts on both the local and national economy, establishing new standards for energy distribution and efficiency.”

In the next five years, housing associations and local authorities across London could be short of the thousands of people they need to look after existing properties, and build new homes – a challenge we’re joining forces with other industry players to tackle.

We are proud to form part of the London Homes Coalition, a partnership of major housing associations, contractors and specialist providers, whose pipeline alone will represent around 10% of London’s construction workforce demand. We’re working together to ensure we maintain a highly skilled workforce to continue investing in high-quality homes for all.

Due to the synergies within the renewable energy and heat networks industry, where we’ve seen the scaling up of heat networks and the introduction of heat network zoning, we’ve begun to address the need to upskill the green workforce of the future. This is the perfect opportunity to share key learnings and make an impact together.

Strategy and Partnerships Director, Elliott Sharpe, represents Vital within the Coalition, so we asked him some questions about the goal of the initiative, why we wanted to be involved, how we’re doing our bit to help, and more.

Why did Vital Energi want to be part of this initiative?
We work with many councils and housing associations across the country, and as a key supply chain partner, we want to help them identify and combat the challenges they’re facing. Not only do our core values align with their mission, we’re facing similar skills gap and labour shortage issues in our own industry, so when we saw the opportunity to join forces and share key learnings, it was a no brainer.

What is the aim of the London Homes Coalition?
The UK social housing sector spends billions of pounds improving and maintaining homes every year, adding substantial value to communities, supporting jobs and driving economic growth and productivity. However, their ability to provide and maintain affordable housing across the capital is threatened by what is fast becoming a critical skills and labour shortage.

The Coalition has launched the Building Skills for the Future report, which identifies the critical risk to the maintenance, retrofit and provision of London’s social and affordable housing.

The purpose of the overall project is to understand the scale of the demand for asset management and investment works over the next few years, identify the potential skills gaps, and design and deliver solutions working together as a sector in close partnership with Government, industry bodies, and education providers.

What kind of content does the report contain?
First up, there’s a detailed data analysis of the consolidated work programmes of London’s major housing associations for the next 5-10 years, and the future workforce demand and the resulting skills gap.

The report also highlights a range of potential solutions to the skills gaps, including collaborative action on outreach and promotion, training and skills development, operations and procurement, and workforce policies and culture, along with a high-level plan for how to progress the identified solutions.

Can you share any key findings from the report?

• Over the next 5 years, the London Homes Coalition’s pipeline alone will represent around 10% of London’s construction workforce demand.
• Without action, the Coalition alone faces a potential deficit of around 2,600 skilled people, particularly in trades such as roofers, carpenters and joiners.
• Women represent only 14% of London’s construction workforce, and as low as 2% in trade occupations. Ethnic minorities make up 24% of the workforce, compared to 40% across all industries.

What are the key drivers of increasing labour and skills demand?

• Increased sustainability standards from net zero regulations.
• Retrofit targets increased – and with urgency to ensure specialised and experience workforce.
• Building safety standards created further resource pressures.
• Recent and upcoming regulatory changes (e.g., Future Homes Standard).
• Housing associations prioritisation on investment, which determines that skills are needed in the sector.
• Increased need to incorporate new technologies and use of data in the sector.

As a company, how are we doing our bit to help bridge the skills gap?
Here at Vital, we ensure diversity and inclusion is firmly embedded within our culture and operations. From championing our female workforce at our annual Women in Energi event, sponsoring the District Heating Divas and being a core member of the Diverse Heat Network, to encouraging an inclusive working environment and promoting equal opportunities for all employees, we are dedicated to fostering a workplace where diversity thrives.

As well as attending careers fairs to promote jobs within the green industry, we deliver Climate Education sessions within schools, and have so far reached 16,800 young people across 108 schools, colleges and universities. We plan and deliver training for employees and upskill industry organisations within our £2m Training Academy, and have developed our own bespoke Net Zero Apprenticeship Scheme.

We work closely with Government at local, regional and national levels and are at the centre of funding and policy discussions alongside the ADE and UKDEA, and are on the Board for the Heat Networks Industry Council (HeatNIC).

We increase awareness of the sector through attending and exhibiting at trade shows and events, and via our social media channels, and are able to promote certainty of work pipelines through our ESCo and O&M contracts, some of which span 40 years.

What are the next steps?
Have a look at the graphic below which explains how we’re going to move the initiative forwards and address the challenges highlighted within the report.

Click here for more information about the London Homes Coalition: https://www.londonhomescoalition.co.uk

Vital Energi is helping Wandsworth Council take steps to meet their target of net zero by 2043, by switching gas boilers to air source heat pumps at Holmleigh Court, which will provide low carbon heating and hot water to residents across 39 properties.

This is the first of many renewable retrofit projects the council will be implementing to help create a greener Borough, and Vital Energi will be taking their original RIBA stage 2 designs through to stage 5.

The gas boilers in the energy centre will be replaced with air source heat pumps (ASHP) on the roof, generating clean green energy. ASHPs are one of the most effective technologies for reducing carbon. They absorb heat from the outside air, transfer it to a liquid and compress it to heat the temperature further.  The heat is then transferred from the liquid to water and distributed throughout the network to provide heat to the connected buildings.

The development will benefit from a new Low Temperature Heating Water network (LTHW), and Vital Energi’s  own bespoke Heat Interface Units (HIUs) will be installed within each property, along with heat meters and new Low Surface Temperature (LST) radiators across Holmleigh Court’s 39 properties.

The HIUs coupled with the LST radiators will allow for more effective and regulated use of heating, and the LTHW network will accommodate an eco-friendlier way to heat up or cool water.

This project is one of many partnerships that Vital Energi is now striving to acquire with local authorities. To aid them in achieving the government’s proposal of becoming fully net zero by 2050, Wandsworth Council are striving to reach new levels of sustainability and decarbonisation, and have partnered with Vital Energi who have comprehensive experience in delivering low carbon multi-technology projects across the UK.

“Wandsworth Council are committed to reducing its emissions and creating a greener, healthier environment in which residents live. Vital Energi is delighted to be helping them deliver their first renewable retrofit project, which will set the bar for sustainable developments across the borough,” said Gerry Davies, Vital Energi’s Regional Director for London and the South.

Berkeley and Peabody are transforming 17 acres of unused land in South East London into the exciting new Lombard Square development in Plumstead, and have awarded Vital Energi the £13m design and build contract.

Berkeley and Peabody are working together to regenerate the unused land, which is located adjacent to Plumstead Station and was once home to Arsenal Football Club, shaping it into a dynamic and well-designed new neighbourhood. The development will comprise 1,750 apartments along with retail, commercial and community spaces. Additionally, there will be a strong focus on sustainability and enhancing the provision of high-quality green space in the area with a new 1.8-acre four seasons park for everyone to enjoy.

Vital Energi are taking the project from the initial RIBA stage 4, through to RIBA stage 5 for the design and build across all eight blocks.

Vital Energi will design and build the Energy Centre that serves the whole development and are supporting Berkeley in reaching their sustainability goals through the installation of ground source heat pumps, which will extract water from aquifers below the surface via 140m deep boreholes. All risers and laterals will be installed within each block, and Vital Energi will complete design and build of the buried district heating network.

vTherm˚e Heating Interface Units (HIUs) will also be installed within each home, along with the Glass App metering and billing platform. This will provide real time heating control and scheduling for residents, allow engineers to diagnose issues remotely via an app, and when combined, both vTherm˚e and Glass will help to optimise the heat network.

The design has commenced and construction will begin in August.

Teams from Vital Energi and Parkinson’s support community, Northern Lights, took to the pitch in a walking football tournament at Witton Park, Blackburn on Friday 26^th July, a highlight for everyone involved for the second consecutive year.

Based in the North West, Northern Lights (NLPD) is a self-funded, voluntary organisation which offers support and help to people with Parkinson’s disease – a brain disorder that causes unintended or uncontrollable movements, such as shaking, stiffness, and difficulty with balance and coordination – and brings people together by introducing them to the joys of walking football.

A great way to stay fit and potentially relieve some of the symptoms of Parkinson’s, walking football also allows participants to learn new skills and make friends with those in a similar situation.

As part of Vital Energi’s commitment to sponsoring the team for the next five years, and after last year’s successful tournament, almost 30 Vital players took to the pitch against teams from NLPD’s walking football club.

Six teams battled it out, and following an intense penalty shootout, NLPDs’ B team was crowned the worthy winner.

Steve Ashworth, member of NLPD who helped establish the relationship with Vital Energi and organised the tournament, said:

“We approached Gary Fielding, back in April 2023 to talk about a possible sponsorship of NLPD. The 2023 football tournament schedule was forecast to be a busy year for NLPD and had the potential to be successful in our quest for trophies.

“Whilst the actual day to day activities can be considered to be miles apart, Vital Energi and NLPD share the same values. They both have a desire and drive to be the best at what they do, in their respective roles within the renewable energy and charitable sectors.

“The inaugural NLPD v Vital Energi match in 2023 set off a relationship that we envisage to be successful for the long term. Whilst there was a significant age difference between the players, there was obvious mutual respect, and that respect has followed through to this year. The guys at Northern Lights are still buzzing about the tournament last week, what a superb day it was.

“NLPD are scheduled to travel to Oslo in September where we’ll be playing against Parkinson’s walking football teams from across Europe to win the Ray Kennedy Cup.”

NLPD Player Spotlight

As a family with their five children, Christine and Keith McIndoe have been living with Parkinson’s for the last 12 years, and through the support of NLPD and an innovative brain implant, they have finally seen light at the end of the tunnel.

Keith, aged 44, was diagnosed with Parkinson’s 12 years ago, and after trying all the medication available to no avail and losing his job as he couldn’t control the symptoms, he was put forward for deep brain stimulation (DBS) surgery, which has transformed his outlook on life.

DBS surgery is where fine wires that are inserted into specific areas of the brain, connected to a pulse generator, and when switched on, the electrodes deliver high-frequency stimulation to the targeted area. This stimulation changes some of the electrical signals in the brain that cause the symptoms of Parkinson’s.

“Myself and Keith have been together for 22 years, and the last 12 have really put us to the test as a family,” said Christine. “Keith took the role of stepdad to my eldest children, and grandad to their children, and we also have two boys together, Josh (21) and Lewis (17), both with DiGeorge and Autism.

“Since the successful surgery in 2022, Keith has a completely new lease of life. We’ve fallen back in love, we’ve have just got married following Keith’s proposal last December. And we can’t wait for our honeymoon in Norway in September with the rest of the Northern Lights team!

“NLPD is our family. They have changed our lives, provided us with endless support, we’ve made friends, and are now doing things we didn’t think possible, like going on holiday, and playing in walking football tournaments in Glasgow. If anyone is down or feeling they can’t cope there always someone at NLPD to pick you back up!

“A Parkinson’s diagnosis is not the end, but the beginning. No matter what you have on in your life, we can still fight and continue to be happy!”

During the tournament, the tombola and raffle raised £335. This will go towards the running of the charity, and ensure members like Christine and Keith have a safe haven with unlimited support.

Find out more about NLPD by clicking here.

Plans to bring an affordable new source of low carbon heating to the town centre are gathering momentum as Solihull Council partners with Vital Energi to deliver its exciting Low Carbon Energy Network.

Emissions from heat are the single biggest contributor to UK carbon emissions, accounting for around a third of the nation’s carbon footprint, however addressing this issue building by building can be difficult and often very expensive.

The new energy network will generate low carbon heat and power (electricity) from a single energy centre and distribute it directly into town centre buildings via a system of underground pipes and cables. The Energy Centre will be built on land next to Tudor Grange Leisure Centre and will house a range of renewable and low carbon energy solutions including Air Source Heat Pumps (ASHP).

This scheme forms part of a wider strategic approach Solihull Council is developing to decarbonise the borough over the next 20 years.

Following a competitive tendering process, Vital Energi Ltd have been selected as the contractor who will take this exciting project forward – building, operating and maintaining the new network. Vital Energi is a leading national player in the heat network and low carbon energy sector and has successfully delivered a range of exemplar, high-profile networks including Leeds PIPES and Mersey Heat.

Since its inception, the project has been supported by expert technical advisers from Sustainable Energy Ltd. They will continue to play a crucial role as the primary client engineer throughout the construction phase.

The first phase of the network will provide heat and power to public and private sector customers, including Council-owned buildings and education campuses. It is intended that future phases will then connect other buildings in the town centre and link to planned commercial or residential developments in line with the Council’s Town Centre Masterplan.

The funding required to get this carbon saving scheme off the ground was provided by the government’s Heat Networks Investment Programme (HNIP) and West Midlands Combined Authority alongside the Council’s own investment in the project. Underpinned by detailed financial modelling, the scheme is projected to repay this investment over time.

Early works have already taken place with a series of site investigations and ecological surveys in March. With contracts now signed and planning permission for the all-important energy centre in place work is expected to get started later this summer and first phase customers could be hooked up and start benefitting from the network as early as next year.

Click here to find out more about the Solihull Energy Network

We’d like to congratulate our partners, Leeds City Council and Ener-vate after the Leeds PIPES network was named as a winner at the Energy Awards in London.

The project won “Energy Project of the Year” in the residential category, with the judges saying, “This is an important demonstrator of the practicality of district heating systems and hopefully a model that can be taken forward elsewhere. An excellent entry that hits all the right notes. A great mix of concept, realisation, data and outcomes.”

Since the project began in 2018, the network has grown to include 30km of district heating pipework, connecting 2,375 homes and 28 buildings, making it a true city-wide heat network.

Crucially, because the project takes heat from the nearby Recycling and Energy Facility and doesn’t rely on fossil fuels, the council were able to bring stability to customers’ energy bills during times of spiraling energy costs.

Another important outcome of the project is that it has helped Leeds City make strong progress to meeting its net zero targets and in 2023 alone and was responsible for almost 6,000 tonnes of carbon reduction.

We’d like to congratulate our project partners, everyone who has and continues to work on the project to grow, operate and maintain it and a big “thank you” to the people of Leeds for their continued support.

Vital Energi will be working in partnership with the Lancaster University to deliver a major new energy project which will virtually eliminate their use of fossil fuel gas and move them significantly closer to achieving their scope 1 and scope 2 net zero targets.

The projects will see the installation of thousands of solar panels and the creation of a low carbon energy centre, housing highly efficient air source heat pumps, which received £21M of funding from the Government’s Green Heat Network Fund (GHNF).  Both schemes are part of the University’s wider decarbonisation efforts, with the University already being one of the highest producers of renewable energy in the UK.

Today saw the projects take a major step closer with the University holding a groundbreaking event at the site of the new solar farm, marking the official start of the projects which will strengthen Lancaster’s position as a global leader in sustainability.

Lancaster University’s Vice Chancellor, Professor Andy Schofield, led the event which brought together members of the University community including the project team, researchers, Vital Energi, and suppliers.

Lancaster University is investing a further £57m to decarbonise its campus and the University is also home to one of the largest groups of environmental science  research groups in Europe.

About the Projects

Solar PV Farm

A new £17M ‘solar PV farm’, funded by the University will consist of more than 17,000 photovoltaic (PV) cell panels, constructed on the University’s land to the east of the M6. The 11.5MW, 52-acre solar farm will generate enough energy to power the equivalent of 3,000 homes. The project also includes a comprehensive landscaping scheme which will enhance the hedgerows and woodland in the area, protecting views for local walkers and creating an environment that will support wildlife and increase biodiversity. Construction of the solar farm will begin in late spring/early summer 2024.

The new solar farm will also house a bespoke research facility enabling research and teaching across disciplines from plant science, to control system engineering. The solar farm will encompass a 50kW agrivoltaics demonstrator enabling the production of crops and electricity from the same land area. It is believed to be the first field demonstrator in the UK and will comprise an area of tracking photovoltaic arrays and an area of vertical panels.

Low Carbon Energy Centre

Following the award of more than £21M of funding from the Government’s Green Heat Network Fund (GHNF), Lancaster University will begin construction of a new ‘Low Carbon Energy Centre’ in Autumn 2024. The GHNF funding will be matched by the University to develop a new £40 million facility on Bailrigg campus which will virtually eliminate the use of gas to heat its Bailrigg Campus. The energy centre will use state-of-the-art heat pump technology to generate a projected 39-Gigawatt hours (GWh) of low carbon heat, enough to heat 95 per cent of the buildings on campus.

Lancaster Campus District Heat Network

Lancaster University has also been awarded £560,387 for the Lancaster Campus District Heat Network from the Heat Network Efficiency Scheme (HNES). Funding will go towards upgrading infrastructure across the network and allow it to be “Heat Pump Ready”. The project therefore includes the installation of more efficient pumps and meters, improving the central building management system, enhancing insulation throughout the network. HNES funding will be crucial in achieving the University’s pledge to reach net-zero carbon emissions from electricity and heating by 2030.

More information about Lancaster University’s commitment to sustainability is available on the website www.lancaster.ac.uk/sustainability

Sustainability Key Messaging

Lancaster University is investing £57million to further decarbonize its campus and help towards achieving a Net Zero future. Lancaster is one of the highest producers of renewable energy out of all UK universities.

• Solar PV Farm
• New 11.5MW solar PV farm with 17,000 solar panels at the Forrest Hills site generating enough to power over 3000 average households.
• The new solar PV farm will generate enough electricity to power a journey of 34,580,000 miles using an electric vehicle – equivalent to driving from London to France, over 80,000 times.

• Net zero energy
• New energy centre will generate enough low-carbon heat through air-source heat pumps to heat 95% of buildings on campus.
• 5km of district heating pipework to connect the buildings on campus together.
• This project will virtually eliminate the use of gas heating on its Bailrigg Campus.

Vital Energi recently completed their first EcoVadis assessment and are proud to have been awarded a Silver Medal Sustainability Rating, placing them within the top 15% of companies rated over the last year. 

EcoVadis is the world’s largest and most trusted provider of business sustainability ratings, having created a global network of over 130,000 rated companies. Within the industry, it is also the most widely recognised sustainability benchmark.

Environmental performance was a scorecard highlight, along with Human Rights and Ethics, and EcoVadis commented that Vital Energi “demonstrate an advanced management system on environmental issues” compared to other companies in the industry.

One notable achievement is Vital Energi’s commitment to achieving net zero carbon emissions. The company have set an ambitious target to become a net zero organisation by 2035. To reach this goal, they have implemented various initiatives, including appointing carbon management experts, Greenly, to help calculate their most detailed carbon footprint ever, investing in on-site renewables and electric vehicles, enhancing energy efficiency in operations and training/upskilling staff and supply chain.

Looking ahead, Vital Energi have ambitious plans to further enhance their sustainability performance. A key initiative is the development of their Supplier Engagement Portal. This innovative platform will facilitate better communication and collaboration with suppliers, ensuring that sustainability criteria are met throughout the supply chain. The portal will allow suppliers to share their sustainability practices, submit compliance documentation, and participate in joint initiatives to reduce environmental impact.

To be rated this highly in their first ever assessment really is testament to all staff throughout the company and their ongoing commitment to protecting our planet for future generations.

To demonstrate their ongoing commitment to sustainability, Vital Energi have identified key focus areas, and work is already underway internally to develop an Action Plan in preparation for their next assessment where they aim to be awarded a Gold Medal Sustainability Rating.

Vital Energi have dual trained their first crop of welders in the essential skills of both arc welding & oxyacetylene welding needed to deliver small & large diameter district heating pipework.

Whilst steel district heating mains are predominantly welded using Arc welding, pipework of 100mm or less must use differing methods due to the wall thicknesses of the steel pipe work. Oxyacetylene welding is a preferred method for this for pipe sizes 100mm and below, and the number of trained operatives in this area has dwindled in recent years, alongside the overall number of welders in the UK declining by a quarter over the last five years.

As welders with the necessary skills are no longer available in the numbers required, Vital created a training programme at their £2m training academy to upskill their existing workforce with the necessary skills.

Ashley Walsh, Vital Energi’s Managing Director of Heat Networks explains, “Oxyacetylene welding has been in decline, as a skill, for a while, which is worrying as we believe Heat Network Zoning will see a significant increase in the amount of district heating being installed, and this is a necessary skill for successful delivery.  If this continues it will create a skills gap which will be a genuine barrier to the UK delivering heat networks and meeting its net zero targets.

“The only way to address this is for organisations to take responsibility and train employees in the essential skills they will need to deliver heat networks to the high standard required for what is an essential part of the UK’s energy infrastructure.”

The training sees Vital’s employees undertake a 6-month training course under the guidance of an experienced welding tutor and, after passing practical exams at an independent UKAS testing house, become accredited to perform oxyacetylene welding.

Mr Hutchinson continues, “There has been some outstanding work done to create high standards for the industry, such as the Heat Network Code of Practice and the work being done through the Heat Network Technical Assurance Scheme, but this will only have an impact if operatives have the skills necessary to deliver a quality install and we are confident that graduates from our training course will have these skills.”

The first graduates from the project are now working to install major heat networks throughout the UK and we look forward to expanding the training to more Vital Energi employees.

Ashley Walsh is Vital Energi’s Managing Director for Heat Networks and has been instrumental in delivering some of the UK’s largest district heating projects, including the Queens Quay, Liverpool Waters and Leeds PIPES.  David Wilkinson, our Design Director sits on the Heat Network Technical Assurance Scheme Steering Group and has decades of overseeing the design of major UK heat networks and energy centres.  Both sat down with us to discuss the key considerations for delivering heat networks and if you’d like to see the conversation, click here.