EDF Energy is investing £1million to fund energy efficient heating measures in three Manchester tower blocks.
The funds will be put towards the installation of low carbon biomass district heating systems across 192 apartments called the “Tribe”.
Biomass heating uses renewable energy sources, such as wood pellets, to generate heat or electricity.
Nigel Rawlings of Tribe Apartments Limited said: “Had we not received this, we may have had to install electric panel heating, which is significantly cheaper to install but far more costly for occupiers and substantially more damaging to the environment.
According to the Energy Saving Trust could help reduce heating bills by £880 a year and 27,000 tonnes of carbon.
The work is due for completion in July 2015.