Heating accounts for approximately 44% of the UK’s total energy demand and is responsible for around 37% of the country’s greenhouse gas emissions. This makes the decarbonisation of heat one of the most urgent challenges facing the UK energy sector. While great progress has been made in decarbonising electricity through wind and solar technologies, heat remains significantly more difficult to address due to its scale, infrastructure demands and reliability requirements.
The Committee on Climate Change has stated clearly that the decarbonisation of heat is essential to meeting the UK’s legally binding 2050 net zero target. Without a large-scale transition away from fossil-fuelled heating, the country will fall short of its climate commitments.
provides security of supply
projects could be delivered in the next 30 years
GWhrs / annum by 2050
tonnes of CO2 savings
Geothermal energy is a dependable and renewable source of baseload heat. It is derived from naturally occurring heat stored in the ground, and once accessed via deep wells, it provides continuous, consistent thermal output regardless of season or weather. Unlike other renewable sources, geothermal systems do not suffer from intermittency and can operate 24/7, offering a highly stable supply of energy.
In the UK context, geothermal energy is especially suited for large-scale heating applications, such as district heating schemes, public infrastructure, hospitals, education campuses, and industrial estates. It offers a local, sustainable, and scalable solution to reducing carbon emissions in heat supply.
Economic Decarbonisation Opportunities for the United Kingdom.
1. Reliable Baseload Supply
Geothermal systems deliver consistent thermal energy year-round, making them ideal for sectors that require uninterrupted heat. Once operational, they are unaffected by external factors such as wind speed or solar intensity.
2. CO2 Emissions Reduction
A fully operational geothermal system can offset significant quantities of carbon dioxide. According to current estimates, 360 geothermal projects deployed across the UK over the next 30 years could save up to 3.6 million tonnes of CO2 annually by 2050. This would make a direct contribution to meeting national carbon budgets.
3. Longevity and Low Operating Costs
Geothermal systems typically have a life expectancy of over 30 years, with minimal maintenance required. Once the capital investment is made in drilling and installation, operational costs are low, and price predictability is high. This makes geothermal a financially stable long-term asset.
4. Domestic Resource for Energy Security
Geothermal energy is a domestic resource. Unlike fossil fuels or even certain renewable components that rely on imports, geothermal systems use subsurface heat which is widely available across the UK. Developing this resource improves national energy security and reduces exposure to international price volatility.
5. Land Use Efficiency
Compared with wind and solar farms, geothermal systems have a small surface footprint, especially when developed in urban or industrial environments. This makes them particularly suitable for retrofit or brownfield developments where land is limited.
The geothermal potential in the UK is significant but currently underutilised. According to studies by Durham University, the UK holds enough geothermal energy within its subsurface to meet the nation’s total annual heating demand for at least 100 years.
Star Energy estimates that up to 360 viable geothermal projects could be delivered in the UK by 2050. If realised, these projects could collectively provide up to 15,000 GWh of heat each year. This level of deployment would make geothermal one of the core contributors to decarbonising heat in the UK, alongside electrification and hydrogen.
These opportunities are particularly promising in locations with suitable geology and concentrated heat demand, such as urban centres, regeneration areas, industrial clusters, and NHS estates.
While the UK is at an early stage in developing its geothermal sector, other countries are further ahead. For instance, Croatia has begun to actively pursue geothermal to reduce its reliance on imported gas. The Croatian government recognises the need to replace gas with domestic baseload renewables to improve energy security. With similar geological potential, the UK can follow a comparable path, leveraging its existing expertise in subsurface engineering and infrastructure.
One of the most promising applications of geothermal energy is within district heating schemes. A typical configuration involves drilling two deep wells into a geothermal reservoir. Heated brine is pumped up from the production well, passed through a heat exchanger, and then returned to the ground via the reinjection well.
This closed-loop system transfers heat to a secondary water circuit which then feeds into the district heating network. It can supply low-carbon heat to thousands of homes and commercial buildings with very high efficiency and low emissions. Geothermal systems can be integrated with thermal storage and smart control systems to meet fluctuating demand and ensure resilience.
The UK government has signalled growing support for low-carbon heating solutions. Programmes such as the Green Heat Network Fund (GHNF) and Public Sector Decarbonisation Scheme (PSDS) have provided funding routes for feasibility studies and infrastructure delivery.
Geothermal projects can benefit from these schemes, particularly where aligned with local authority net zero targets and public sector estates. Moreover, policy developments such as heat zoning and carbon pricing will likely strengthen the business case for geothermal in the coming years.
Star Energy is uniquely positioned to lead the UK’s geothermal expansion. With over three decades of experience in onshore subsurface development through our oil and gas operations, we have the technical, operational, and regulatory capabilities to deliver geothermal at scale. We are already working with NHS Trusts, local authorities, and commercial clients across the UK to identify, design, and develop geothermal projects that deliver measurable environmental and energy benefits. Our acquisition of GT Energy in 2020 marked a major step in our transition to low-carbon heat solutions.
Our team provides a complete end-to-end geothermal service, from early-stage feasibility, seismic surveys, test drilling, and system design through to procurement, construction, commissioning, and long-term performance monitoring.
Decarbonising heat is one of the UK’s largest infrastructure challenges. Geothermal energy offers a long-term, reliable, and scalable solution that complements other renewable technologies. It is particularly suited to the UK’s need for clean, secure, locally generated heat. Star Energy is committed to building a UK geothermal sector of scale, capable of delivering real environmental impact while creating jobs, supporting local economies, and reducing dependence on carbon-intensive fuels.
With extensive untapped geothermal resources, favourable geological conditions in many regions, and an increasing policy focus on heat decarbonisation, the UK stands at a turning point. Geothermal energy can become a key pillar of the national energy transition. By investing in geothermal today, the UK can secure a cleaner, more stable, and more resilient energy future.
The Croatian Hydrocarbon Agency estimates Croatian geothermal electricity generation potential at 1000 MW. In 2025, there is only one geothermal power plant in Croatia, with a gross capacity of 17,5 MWe / net capacity 10 MWe. Direct heat utilisation potential is even higher; in 2025, there are only four geothermal direct heating projects in operation.
A depth of knowledge & experience in the Geothermal arena gives us the edge over competitors
Ross Glover, Chief Executive
Our strategy is to create value for shareholders, employees and communities by being a leading operator of oil and gas assets, renowned for operational excellence and strong safety standards.
Ross Glover, Chief Executive
Geothermal energy is an ideal solution to the urban deployment of renewable energy, geothermal energy.
Ross Glover, Chief Executive