REG - Star Energy Group - Partnership with Veolia - Geothermal Projects

Star EnergyAnnouncement

06/05/2025 07:00

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RNS Number : 3221H  Star Energy Group PLC  06 May 2025

6 May 2025

 

This information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014 as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the
Company's obligations under Article 17 of MAR. Upon the publication of this
announcement, this inside information is now considered to be in the public
domain.

 

Star Energy Group plc

("Star Energy" or the "Company")

 

Star Energy partners with Veolia to develop large scale geothermal projects to
decarbonise energy

 

·    Star Energy has signed a memorandum of understanding with Veolia to
develop large scale geothermal heating projects in the UK.

·    Focusing on the decarbonisation of heat supply to new and existing
customers, the two companies will work together on decarbonising district
heating schemes, commercial buildings, hospitals, campuses and industrial
processes.

·    The partnership further extends Star Energy's diversification, using
its existing expertise, into geothermal energy, and supports Veolia's global
GreenUp strategy to lower carbon emissions and counter climate change.

 

Star Energy Group plc (AIM: STAR) is pleased to announce that it has signed a
memorandum of understanding with Veolia, Europe's decarbonising energy leader,
to develop large-scale geothermal projects. The new partnership will help to
deliver the UK's net zero goals by using the constant, reliable, renewable and
low-carbon energy source from the ground. This geothermal energy will replace
the fossil fuel energy that is currently used to supply heat to district
heating schemes, commercial buildings, hospitals and education campuses.

 

As almost a third of the final energy consumed in the UK is used as heat in
the domestic, commercial and public sectors, resulting in over 40% of the UK's
carbon emissions, there is an urgent need to tackle carbon emissions from heat
if the country is to meet its net zero goals. Geothermal heat is more energy
efficient than many low-carbon alternatives, requires a much smaller surface
footprint, will offer significantly greater longevity and is a potentially
lower-priced solution. 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.

 

Working together, Star Energy and Veolia will develop geothermal solutions
using advanced modelling and simulation, hydrogeological and seismic studies,
and access to geothermal heat using directional drilling. The systems will
utilise proven technology in operation in many parts of the world, with
demonstrable environmental and end user benefits. In many cases the systems
can be attached to existing customer heating networks with minimal need for
changes.

 

John Abraham, Chief Operating Officer, Industrial, Water & Energy UK,
Ireland & Nordics, Veolia, said:

 

"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. 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."

 

Ross Glover, Chief Executive Officer of Star Energy, said:

 

"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. 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 further information please contact:

 

 Star Energy Group plc                                           Tel: +44 (0) 207 993 9899

 Ross Glover, Chief Executive Officer

 Frances Ward, Chief Financial Officer

 Zeus (Nominated Adviser & Broker)                                Tel: +44 (0) 203 829 5000

 Antonio Bossi, Alexandra Campbell-Harris (Investment Banking)

 Simon Johnson (Corporate Broking)

 Vigo Consulting                                                 Tel: +44 (0) 207 597 5970

 Patrick d'Ancona, Finlay Thomson, Kendall Hill

 

About Veolia

 

Veolia's specialist heat network team delivers optimised, commercially viable,
and technically robust solutions gained through the experience of designing
and installing thousands of kilometres of networks across many prestigious and
technically demanding projects. In the UK, Veolia currently manages energy
plants and networks across more than 50 sites and operates over 120 community
heating schemes. Globally the company currently operates around 600 district
heating networks covering 7,000km of heat mains.

 

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