Transforming how we work

Midlothian Energy Ltd

Midlothian Energy Limited (MEL), is a 50/50 joint venture between the council and Vattenfall Heat UK (part of Swedish energy company Vattenfall AB). 

Helping achieve climate change goals

Established in 2020, just a year after the council declared a climate change emergency, MEL plays an important role in helping Midlothian reach its goal of net zero emissions by 2045.

New flagship centre

MEL is developing low carbon energy projects valued at £145 million, including a new flagship energy centre which opened in November 2024.

Low carbon heat

Once connected, the MEL Energy Centre will capture low carbon heat from the Millerhill Recycling and Energy Recovery Centre – an energy from waste plant operated by FCC Environment. 

Supplying new town of Shawfair

As outlined in the council’s Climate Change Strategy, the new MEL Energy Centre will then use this captured heat to supply around 3,000 homes, education and retail properties in a district heating network supplying the new town at Shawfair.

Government funding

MEL’s updated business plan includes expanding the MEL heat network, which benefitted from a £7.3 million Scottish Government grant into existing buildings in Midlothian and into Edinburgh.

Help for Bioquarter

Much of 2025 will be focused on planning the delivery of low carbon heating to the area around Little France, including the Bioquarter area in the south of Edinburgh.

Does not rely on fossil fuels

District heating does not rely on fossil fuels and is therefore less affected by the current wholesale energy cost inflation, and protects customers from market volatility, securing long-term lower prices for reliable heat supply.

Harnessing heat that would have been wasted

Collaboration between Scottish Government, Vattenfall, Midlothian Council, FCC Environment and Shawfair LLP will harness heat that would otherwise be wasted to supply the district heating network.

Statistics

• This initial phase of the project, supplying heat to Shawfair, is expected to save over 2,500 tonnes of CO2 per year, the equivalent of taking 1,200 cars off the road. 
• Vattenfall’s modelling suggests the heat networks in Midlothian could reduce emissions by up to 90% in comparison to individual gas boilers fitted in every home.
• At present, 86% of Scottish households rely on fossil fuels to keep warm, highlighting the scale of the challenge for the low-carbon heat transition. 
• MEL’s strategy is capable of supplying heat to the equivalent of 170,000 homes in Midlothian, Edinburgh and East Lothian by 2050. 
• These future projects will see district heating networks grow and combine other sources of waste heat creating a network similar in scale to those delivered by Vattenfall in major European cities, such as Amsterdam, which has been realised over the last 25 years.
• The Millerhill recycling and energy recovery centre (RERC) was developed to help Midlothian and Edinburgh City councils divert 155,000 tonnes of waste from landfill each year. The site is a key component in the councils’ commitment to helping to reach the Scottish Government’s Zero Waste target.
• Economic modelling by Vattenfall estimates 900 jobs through direct employment and the wider supply chain will be created by 2050, thanks to the venture.