A report into the Hull District Heating Project has found that it would be both technically and financially viable.
The news comes as the council has this week announced its participation in the new Oh Yes! Net Zero campaign, encouraging local businesses and residents to drive down their emissions and take positive action on climate change.
The report on the Hull District Heating project will be going to the cabinet on Monday 28 March and recommends the plans move to the next phase.
The system would provide heating to public and private business, and residential accommodation in the city centre.
It would also provide heating and hot water at a lower cost than other low carbon heating solutions, while saving more than 2,000 tons of CO2 a year. Heat is provided from a single central boiler that provides the heat and hot water to all buildings connected to the network.
Councillor Daren Hale, Leader of Hull City Council, said: “This is another significant step forward for the council and our city in meeting our carbon neutral ambition.
“The development of district heating continues the regeneration of the city centre and further enables us to deliver more carbon savings. It could create jobs in another green energy sector for the city, cementing our place as the energy city.”
The project also forms part of the council’s decarbonisation agenda, the Hull 2030 Carbon Neutral Strategy.
To find out more about the Oh Yes! Net Zero campaign, access advice and tips about reducing your carbon footprint and sign up to be part of it visit www.ohyesnetzero.co.uk.
