CeraPhi Energy (CeraPhi) and the Star Energy Group plc (Star Energy) have signed a strategic agreement for the potential transfer and repurposing of non-producing oil and gas wells for geothermal energy production. The collaboration initially targets up to 25 wells across multiple wellfields in the UK.
Under the terms of the agreement, CeraPhi will act as the exclusive strategic partner responsible for evaluating, redeveloping, and commercialising geothermal energy from selected Star Energy wellsites. These assets, once they are no longer commercially viable for hydrocarbon production, will be transformed into long-term renewable heat and energy solutions serving both business and residential customers. The project presents a practical and scalable pathway to reduce the environmental impact and costs associated with new geothermal development by leveraging established well assets.
The agreement is the first step towards developing a clear regulatory and commercial pathway, including engagement with the North Sea Transition Authority (NSTA) and the Environment Agency, and sets out defined milestones for asset transfer, planning, and development. CeraPhi will assume responsibility for the full lifecycle of geothermal development, including funding, construction, operation, and eventual decommissioning.
Repurposing of the wells will be done using CeraPhi’s proprietary CeraPhiWell™ technology. This is a closed-loop, single-well system in which a special working fluid is circulated down the well through a concentric tubular arrangement that acts as a downhole heat exchanger. The operating life of a CeraPhiWell is anticipated to be at least 50 years and will likely be longer.
CeraPhi had earlier completed a commercial demonstration of its CeraPhiWell™ system earlier in the summer at the KMA wellsite in North Yorkshire. A recent note from the company states that this project is continuing development and will eventually supply a heat network that will serve a combination of residential and commercial buildings in Kirby Misperton and Flamingo Land.
“This agreement is a transformational step in unlocking the UK’s geothermal potential. By repurposing existing wells, we are not only accelerating the transition to clean energy but also creating a sustainable model that delivers long-term value for communities, industry, and the environment,” said Karl Farrow, CEO of CeraPhi Energy.
“Star Energy has a long-standing role in the UK’s energy landscape. This partnership with CeraPhi enables us to responsibly transition our legacy assets into future-facing clean energy solutions, supporting the UK’s net zero ambitions while maximising the value of our infrastructure,” added Ross Glover, CEO of Star Energy Group.
Source: CeraPhi Energy
