Veolia, Europe’s decarbonizing energy leader, has entered into a memorandum of understanding (MoU) with Star Energy to jointly develop large-scale geothermal heating solutions in the UK.
The partnership is centered on supporting the decarbonization of heat supply to both new and existing customers across various sectors, including district heating systems, commercial buildings, hospitals, campuses, and industrial processes.
This strategic collaboration furthers Veolia's global GreenUp strategy, which aims to lower carbon emissions and combat climate change. For Star Energy, the alliance expands its diversification into the geothermal energy sector, leveraging its existing expertise in the energy field.
The new initiative aligns perfectly with the UK’s ambitious net-zero targets. Geothermal energy, which is a constant, reliable, renewable, and low-carbon resource from deep underground, offers a sustainable alternative to fossil fuels that are currently used for heating. By tapping into geothermal energy, Veolia and Star Energy aim to significantly reduce carbon emissions from heating systems in critical infrastructure across the UK.
Heating accounts for nearly a third of the energy consumed in the UK, contributing to more than 40% of the nation's total carbon emissions. This highlights the urgent need to transition away from fossil fuel-based heating solutions to meet the country’s net-zero goals. As part of the solution, geothermal energy provides superior energy efficiency, requiring a smaller surface footprint and offering greater longevity at potentially lower costs compared to other alternatives. Additionally, geothermal systems have the advantage of lower electricity requirements, making them more resilient to power price fluctuations. In areas with limited grid capacity, geothermal solutions provide an effective low-carbon alternative.
Veolia and Star Energy are set to deploy advanced geothermal heating systems by combining state-of-the-art modelling, hydrogeological and seismic studies, and directional drilling techniques. Drawing on proven global technology, these systems can integrate seamlessly with existing heating networks, minimizing the need for substantial changes and offering significant environmental and user benefits.
John Abraham, Chief Operating Officer of Industrial, Water & Energy UK, Ireland & Nordics at Veolia, expressed enthusiasm about the partnership: "Veolia has a proven track record of delivering carbon savings through district heating, and our plan is to increase the number of district heating schemes in the UK – aligned with our global GreenUp strategy. So we particularly welcome this new partnership that will be able to deliver significant carbon savings in a sector where delivery can be complex. 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."
Star Energy's CEO, Ross Glover, emphasized the importance of geothermal energy in the UK’s energy transition: "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. We look forward to working with the Veolia teams, and developing new projects using our unique expertise, gained over decades in the energy sector. Through partnerships such as this, we fully expect our geothermal business to grow significantly as it delivers to customer requirements to secure and decarbonize their energy supply."
The collaboration builds on Veolia’s extensive experience in managing and optimizing district heating networks, having successfully designed and installed thousands of kilometers of heat mains across a wide array of prestigious projects. In the UK alone, Veolia manages energy plants and networks across more than 50 sites and operates over 120 community heating schemes. Globally, Veolia operates around 600 district heating networks spanning 7,000 kilometers of heat mains.
The partnership between Veolia and Star Energy is a key step toward a sustainable and low-carbon future for the UK, bringing together advanced geothermal technology and expert energy management to meet the nation’s ambitious climate goals.