National Centre for Decarbonisation of Heat
City-REDI supported the development of the business case for the National Centre for Decarbonisation of Heat (NCDH).
The initiative aimed to establish a dedicated facility at Tyseley Energy Park, operated by the University of Birmingham, to tackle fuel poverty and address skills deficits within local communities. To secure Levelling Up Funding, a comprehensive business case was developed, with City-REDI playing a central role in its formulation—particularly in leading the development of the economic case.
City-REDI was responsible for modelling the project's value for money through a detailed benefit-cost assessment. This included both monetised and non-monetised impacts, while accounting for associated risks and uncertainties. Monetised benefits encompassed reductions in carbon emissions, improvements in air quality, health-related savings, and the potential to leverage further investment. In addition, the assessment quantified—but did not monetise—other key outcomes such as job creation and safeguarding, as well as reductions in fuel poverty.
Securing the funding for the National Centre for Decarbonisation of Heat rested on developing a compelling case which evidenced the impact that could be delivered to the communities of the West Midlands in terms of cost of heat, the socioeconomic benefits of investment and the multiplying factor that capital investment drives. The expertise of City-REDI and the credibility of the modelling team provided were vital components of the underpinning case.
Impact
As a result of our collaborative efforts with partners, the National Centre for Decarbonisation of Heat (NCDH) successfully secured £20 million in the third round of Levelling Up Fund announcements. Work on the Centre is expected to commence within the next few years. Once operational, the NCDH will serve as a testbed for energy innovations, market mechanisms, policy frameworks, and regulatory approaches—engaging directly with real customers. The Centre will also develop new programmes that position the West Midlands at the forefront of the heating sector’s transformation, helping to shape both regional and national policy.
Links:
National Centre for the Decarbonisation of Heat
Partners and Stakeholders:
- University of Birmingham
- Tyseley Energy Park
- Birmingham City Council
- Manufacturing Technology Centre
- Energy Catapult Systems
- Energy Research Accelerator