They have formed a 50:50 joint venture, which will initially see the installation of a district heating network that will provide low carbon heat to new homes at the Shawfair development.
The heat feeding the network will be sourced from waste heat produced by FCC’s Millerhill waste and recycling plant and will be fed through a network of pipes to local homes.
The £20 million project is expected to help reduce carbon emissions by 75% compared to conventional gas boiler heating systems and is scheduled to come into operation in 2021.
Up to £7.3 million of funding will be provided by the Scottish Government’s Low Carbon Infrastructure Transformation Project, which is part funded by the European Regional Development Fund.
Councillor Russell Imrie, Midlothian Council’s Cabinet Member for Economic Development said: “We’re very excited to be working with Vattenfall to set up an energy services company for innovative new projects benefitting local residents and businesses in the area and setting us well on our way to a carbon neutral future.
“Working closely on our first project with Shawfair LLP, the local developer and FCC Environment, our existing Zero Waste Contractor, we look forward to delivering another major pathfinding project for Scotland.”
The partnership will also explore the potential of thermal storage and other local heat sources to enable the network to grow and expand across Midlothian and beyond.