Star Energy and Veolia partner to support geothermal heating projects in the UK
Salisbury District Hospital, England (source: Richard Avery, CC BY-SA 3.0, via Wikimedia Commons)
Carlo Cariaga
6 May 2025
Star Energy Group has partnered with Veolia, combining their strengths to deliver large-scale geothermal heating projects in the UK.
British energy company Star Energy Group has announced a partnership with French infrastructure company Veolia to jointly develop large-scale geothermal heating projects in the UK. The joint work is projected to include hydrogeological and seismic studies, simulation, and directional drilling using proven technology that already been deployed globally.
The two companies will focus on leveraging geothermal resources to decarbonize district heating schemes, hospitals, campuses, commercial buildings, and industrial facilities.
With heating accounting for nearly a third of the UK’s total energy consumption and over 40% of its carbon emissions, Star Energy said geothermal systems offered a long-term, cost-effective, and grid-resilient alternative to other low-carbon heating technologies. As a result of the lower electrical power needs of geothermal systems, they offer a solution insulated from power pricing and, in places where alternative electrified solutions like electrical heating or high power heat pumps are more difficult to connect due to insufficient grid capacity, they provide a low carbon alternative.
This is also an important step in the company’s diversification strategy, leveraging its subsurface expertise to expand into geothermal energy.
Star Energy is already involved in delivering geothermal heating solutions to Southampton in partnership with district heating network operator Bring Energy. In 2024, the company secured a €25 million facility to fund its geothermal initiatives both in the UK and in Croatia. Star Energy is also delivering multiple geothermal projects to NHS facilities.
“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,” said Ross Glover, CEO of Star Energy.
“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 decarbonise their energy supply.”
For Veolia, the collaboration would support its global ‘GreenUp’ strategy to reduce emissions and combat climate change. Through local subsidiaries, Veolia is currently involved in a geothermal heating project in Lodz, Poland in partnership with Innargi.
“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,” added John Abraham, COO, Industrial, Water, and Energy UK, Ireland, and Nordics at Veolia.
“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.”
Source: London South East
