London plans to harness waste heat from Barking Power Station to heat upwards of 120,000 homes by 2011.

The district heating initiative, which follows in the footsteps of the old Battersea Power Station scheme, should save up to 96,000 tonnes of CO2 a year in the Thames Gateway area, according to the London Development Agency (LDA).

Barking Power Station currently wastes 40%, or 400MW, of heat through the generation of electricity. In future, that heat will be sent out through a network of pipes to homes, replacing the use of natural gas.

A partnership between local authorities, the LDA, Barking Power, London Thames Gateway Development Corporation and the Department for Communities and Local Government is working with energy consultancy company Ramboll which helped set up a similar scheme in Copenhagen.

A feasibility study of 37,000 homes is underway targeting new developments in Barking Riverside, the Royal Docks, Havering Riverside and Barking town centre.

The project will be similar to district heating schemes on the continent and will help to deliver the London mayor's Climate Change Action Plan to reduce London’s CO2 emissions by 60% by 2025.