The Potential of Geothermal Energy & The Opportunity For The UK
With countries like Germany and the Netherlands embracing geothermal energy as a low-cost, renewable source, why has the UK been slower to act?
The UK has vast geothermal resources, enough to heat the country indefinitely, reduce emissions by over 30%, and cut reliance on volatile gas markets. Yet, for decades, energy policy has been dominated by North Sea oil and gas. The need for diversification is clear with rising costs, net-zero targets, and geopolitical uncertainty.
Examples of businesses using geothermal energy
The newly launched National Geothermal Centre aims to integrate geothermal into the UK’s energy strategy. Some projects are already proving their viability:
Lanchester Wines uses heat pump technology to draw energy from a disused mine at its warehouses in Gateshead. MTU Aero Engines in Germany has invested in deep geothermal energy, which covers up to 80% of its heating needs while cutting costs and emissions. And Eden Geothermal has seen growing interest from businesses looking for energy security and price stability.
The Benefits
The case for geothermal businesses that invest in geothermal could benefit from:
- Lower long-term energy costs
- Greater energy security
- Reduced carbon emissions
- Expanding investment and financing options
Despite the advantages, financing remains a challenge. Anne Murrell of UK GeoPower notes that even small businesses can benefit, but early-stage exploration and partnerships are key to managing risk. Industry leaders stress that government support and investment incentives are needed to scale up adoption.
Quote Relating to this story -
“For businesses, even small businesses, geothermal can be a great option for heating, cooling and manufacturing or agricultural processes. Beyond the obvious advantages of being a green, renewable and long-term solution, geothermal can be financially interesting for CFOs.” - Anne Murrell of UK GeoPower.
An Opportunity For The UK
With 23,000 disused coal mines across the UK, there is an opportunity to repurpose infrastructure, create jobs, and establish long-term energy savings. Geothermal is not a future technology—it’s a proven solution. The UK has the resources and expertise, but unlocking its potential will require policy and investment to match.
For further information on this story, please visit these links from the ICAEW:
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