The Scottish Government has announced £1.5 million of funding for seven district heating projects across the country through its District Heating Loan Fund.
All seven will make use of renewable heat generated from wood fuel or air source heat pumps and six of them will bring warmth to houses in areas off the gas grid.
The majority of the money will go to just two projects. An existing 3.5 MW biomass scheme in Pulteneytown will receive £400,000 for expansions and upgrades, extending heating to an additional 200 homes and a local hotel.
Another £400,000 will go to an air source heat pump project in Dundee, for the conversion of a waterfront warehouse into 99 flats in the first phase and the construction of a further 75 new build properties in the second.
Scottish Energy Minister Fergus Ewing said: “District heating is an important means of achieving both carbon emission and fuel poverty targets as well as contributing to the development of a low-carbon economy and local economic regeneration.
“This is only possible because of the on-going work with partners to educate and inform communities and developers about the potentials and benefits district heating can bring.”