A £13 million investment in a carbon-friendly heating project has been described as an “amazing thing” for the region at a Wirral Council committee meeting.

The money, part of the Merseyside Pension Fund, will help provide low-carbon heat for 10,000 homes in Liverpool by the time the scheme is completed.

Green Party councillor Pat Cleary, chair of the pensions committee, said: “The district heating project is quite an amazing thing. It might look like just a bunch of pipes, [but] when you see it on the ground it is a very significant operation.

“Members will be aware that this is something I have been very keen for the fund to bring forward. Local investments we make as a fund help to improve our local area.

“There is further scope for this to develop, I think it is something we should be very proud of. This [investment] not only secures the future value of our pensions for our scheme members, but also helps to support the local economy.”

District heating is the supply of heating and hot water to multiple buildings from a centralised generation source, via insulated underground pipes.

This system is widely developed in the Nordic countries, but less so in the UK, and reduces the carbon emissions produced in supplying heat to homes.

The money is being given to Mersey Heat Ltd (a subsidiary of Peel Group), whose initial aim is to serve residential and commercial units within the Liverpool Waters area.

However, the project does have the potential to expand to serve neighbouring developments.

Labour councillor Brian Kenny welcomed the report, but asked: “Is that the policy now that we do try and invest locally whenever possible?”

A council officer responded that although the district heating fund is focused on Merseyside, the pension fund as a whole will continue to invest globally to get the best deal possible for scheme members.