It will help more than 700 households in Glasgow to heat their homes and reduce their energy bills. The low carbon central heating system, located in Broomhill, will provide heat and hot Water. It aims to reduce fuel poverty in the region and is expected to save more than 2,000 tonnes of CO2 emissions in its first year.
The project will be part-funded by a £5 billion loan from the Scottish Partnership for Regeneration in Urban Centres (SPRUCE) Fund and the remaining money will be provided by British Gas.
Social Justice Secretary Alex Neil said: “The district heating scheme will help tackle fuel poverty, be better for the planet and make homes in the Broomhill area warmer and cheaper to heat.
“From energy centres to business parks, the SPRUCE fund is helping to regenerate areas by providing crucial investment that is supporting the economy and jobs and transforming our communities for the better.”