A project in Birmingham will receive £780,000 of Government funding to reduce carbon emissions and provide cheaper heating to two residential towers.

Manton House and Reynolds House, in Newtown, are among the successful bidders to receive Low Carbon Infrastructure (LCI) funding through the Homes and Communities Agency (HCA), in close consultation with Birmingham City Council.

The funds will be used to connect homes at the two 13-storey tower blocks off Newbury Road to a new biomass combined heat and power (CHP) system which is to be installed at the neighbouring new BSF Holte School building.

It will provide a more efficient heating source to the homes, and also has the potential for more new homes planned for the area to be connected to the CHP.

The project is the second scheme in Birmingham to be approved for LCI funding, after the Cambridge and Crescent Towers city centre development, to run heating systems from residual energy generated by the International Convention Centre, was approved last month.

Regional director for the HCA, Paul Spooner, said the scheme would reduce the carbon footprint of the existing buildings and benefit residents through cheaper energy bills.

Councillor John Lines, cabinet member for housing at Birmingham City Council, said: “Tackling fuel poverty is high on the agenda for us, and this is the second scheme in the city to benefit from extra funding.

“With our tenants and residents’ support, I believe we can contribute to the council’s ambitious targets to reduce Birmingham’s carbon footprint by 60 per cent by 2026 and make our city more environmentally-friendly than ever before.”

Energy and climate change minister Lord Hunt of Kings Heath said: “This new money from Government will help to achieve Birmingham’s own aim to cut carbon emissions by 60 per cent by 2026 as well as reducing energy bills for the people who live in Manton and Reynolds Towers.

“Community heating schemes are an excellent example of how we can work together to tackle climate change.”

The Manton and Reynolds towers project is part of the emerging transformation of Newtown that is being led by the council and supported by HCA-funded Urban Living.

The two blocks are also due to receive a £1m refurbishment next year through Urban Living’s programme to improve properties in need.