New Carillion company will provide housing insulation and renewables for the government-funded scheme

Eaga has extended its contract with the government to provide houses with insulation and renewable heating technologies in England as part of the Warm Front programme.

The extension is for two years, and the scheme is worth £210m over the period.

Drew Johnson, Eaga’s chief executive, said that the deal could be a route for the renewable energy firm to become involved with other green building improvement schemes the government is planning.

“I am pleased that we are continuing to deliver the Warm Front Scheme for DECC which will provide an important strategic foundation for Eaga to leverage into the wider Green Deal and Energy Company Obligation programmes that are continuing to take shape.”

On February 11 Eaga was bought by Carillion for £306m, a deal Eaga’s shareholders approved on Tuesday.