LONDON: Star Energy Group (AIM: STAR) has signed a memorandum of understanding with Veolia, Europe’s decarbonizing energy leader, to develop large-scale geothermal projects in the U.K., the companies announced Tuesday.
The partnership aims to support the U.K.’s net-zero goals by harnessing geothermal energy, a constant and low-carbon heat source, to replace fossil fuels in district heating systems, commercial buildings, hospitals and education campuses.
Heating accounts for nearly a third of the U.K.’s final energy consumption and contributes over 40% of its carbon emissions. Geothermal energy offers a more efficient, longer-lasting and potentially cheaper alternative to other low-carbon solutions, the companies said. It also requires less electrical power, reducing strain on the grid.
Star Energy and Veolia will use advanced modeling, hydrogeological studies and directional drilling to develop geothermal systems. The technology has been successfully deployed worldwide and can often integrate with existing heating networks with minimal upgrades.
John Abraham, Veolia’s chief operating officer for industrial, water and energy in the U.K., Ireland and Nordics, said the partnership aligns with the company’s global GreenUp strategy to expand low-carbon heating.
“Geothermal energy is economically and environmentally attractive compared to other solutions,” Abraham said. “This collaboration will help deliver the carbon savings needed across residential, commercial and public sectors.”
Ross Glover, CEO of Star Energy, said geothermal energy will play a key role in the U.K.’s transition to sustainable heat.
“We look forward to working with Veolia to grow our geothermal business and help customers decarbonize their energy supply,” Glover said.
The partnership underscores increasing efforts to scale up renewable heat solutions as the U.K. works toward its 2050 net-zero target.