The primary aim of the partnership is to harness geothermal resources to decarbonize various heating systems, including those for district heating, hospitals, campuses, commercial buildings, and industrial facilities. Geothermal energy is seen as a promising solution, especially since heating represents nearly a third of the UK’s total energy consumption and over 40% of its carbon emissions. Star Energy believes that geothermal systems offer a long-term, cost-effective, and grid-resilient alternative to other low-carbon heating technologies. With lower electricity demands, geothermal systems are less affected by power pricing, making them a viable solution in areas with limited grid capacity for alternatives like electric heating or high-power heat pumps.
This partnership is also part of Star Energy’s broader strategy to diversify into geothermal energy, building on its subsurface expertise. The company is already involved in delivering geothermal heating solutions in Southampton, in collaboration with district heating network operator Bring Energy. In addition, Star Energy secured a €25 million facility in 2024 to fund its geothermal projects in the UK and Croatia and is actively working on several geothermal initiatives for NHS facilities.
Ross Glover, CEO of Star Energy, stated: “Star Energy is playing a key role in the UK’s transition to sustainable and predictable heat provision, and geothermal has an important role to play in the UK’s energy transition by providing a home-grown, predictable, renewable heat option for businesses and households, contributing to the Government’s 2050 net-zero ambitions.”
For Veolia, this collaboration supports its global ‘GreenUp’ strategy to reduce emissions and address climate change. Veolia is currently involved in a geothermal heating project in Lodz, Poland, in partnership with Innargi. John Abraham, COO of Veolia’s Industrial, Water, and Energy UK, Ireland, and Nordics divisions, highlighted the company’s experience in delivering carbon savings through district heating and expressed optimism about the new partnership: “We know that geothermal energy is attractive, both from an economical and emissions perspective, when compared to other renewable and fossil fuel solutions. By working together we will be able to deliver the significant benefits of low carbon heat that is needed across a wide range of domestic, commercial and public sector applications.”
The partnership marks a significant step in advancing geothermal energy in the UK and aligns with both companies' goals of contributing to the nation’s transition to a low-carbon energy future.
