At least 350 homes in the Torry area will pay lower fuel costs due to the Combined Heat and Power scheme, which was unanimously backed by councillors during a meeting last month.
Low carbon energy will also be delivered to a primary school, swimming pool, community centre and various commercial properties in the East Tullos Industrial estate.
The Aberdeen Heat and Power (AHP) network initiative began in 2002 and provides energy for over 2,300 flats in 33 multi-story blocks and two sheltered housing blocks in Seaton, Tillydrone, Hazlehead and Stockethill as well as 13 public buildings.
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A brief for the scope of works will now be developed. Along with an assessment on how the designs could be extended within the Torry area and more widely across the city. Work will also continue on the procurement process for a technical design consultancy service.
Cllr Jean Morrison said: "Aberdeen is fortunate to have the country's leading heat network which allows us to create a more environmentally friendly, sustainable city, to spur economic growth through infrastructural investment and commercial opportunities and, most crucially, to address fuel poverty which has been a persistent challenge across Scotland for decades.
"The decision made at full council instructed officers to develop detailed plans for Phase One of the extension with ambitious plans outlined for the future which could see the heat network, supplied by the proposed Energy for Waste plant in East Tullos, offer sustainable heat to business and homes across the entire Torry area and eventually connect into a citywide network.
"By developing the infrastructure to include commercial premises, the scheme will also be able to generate substantial revenue which can be used for continuous investment in the system."
(LM/CD)
