
Gateshead Energy Company
Repurposing Gateshead’s abandoned mines for geothermal heating
Sevice Area:
energy
Sevice Area:
energy
Background
Servicing around 85% of homes in Britain, gas-powered domestic heat is one of the most carbon intensive areas of the economy. Reliance on gas heating exacerbates fuel poverty because domestic bills are subject to volatile international fossil fuel markets. Decarbonising household heating typically requires a heat pump to be installed by the householder at an often prohibitive cost of around £10,000. Minimising fossil fuel dependency and cultivating renewable alternative energy sources is crucial to ensure the future viability of the planet. Many localities are developing unique solutions suited to their geography and infrastructure to help build a green energy future for the UK.
Local Action
Gateshead Council notably launched its geothermal heating system in March 2023, making use of the area’s abandoned mine networks. Gateshead Energy Company (GEC), the municipally owned power supplier, integrates heat and power generation and distribution with energy storage and National Grid services.
Remnants of its industrial past, deserted coal mines filled with warm groundwater lie beneath Gateshead. The council has invested in technology and infrastructure to exploit this untapped geothermal energy source and deliver a low carbon heat network. It works through a scaled heat pump – extracting and concentrating the heat energy from the external source (in this case the mine water) and directing it to the pipes used in buildings.
The heat network supplies Gateshead town centre, currently connected to 23 buildings including council offices, depots, education facilities, a leisure centre and 350 newly built homes. Expanding the heating system involves installing new pipelines at viable sites and buildings. Now the infrastructure is in place, low carbon heat can increasingly be used in Gateshead as more customers connect.
The initiative is entirely council led but has been helped with support from government as part of a national drive for green energy solutions.
Impact on local residents
At this early stage the scheme only services council buildings in the town centre, so has not widely improved conditions for residents. As more buildings join the system more of the community will benefit from cheaper, green heating. For the initial connection to the sustainable mine water heating, the council charges industry rates but offers a discount of at least 5% compared with market energy tariffs. It also significantly cuts out the high upfront costs required to install sustainably powered heating equipment, such as heat pumps.
Environmental Impact
Mine water heating currently provides carbon savings of around 60% compared to a gas boiler. This is expected to improve further because the pump runs on National Grid power, so will become more sustainable as the Grid includes more renewable energy. By 2030 the National Grid is aiming to operate carbon neutrally.
What's next?
GEC intends to take the heat network into existing housing estates. It is developing a pilot on an estate of 550 homes.
Gateshead Council has reimagined the town’s mining legacy to form part of the green energy solution for future generations. While Gateshead’s specific approach can only be replicated in areas gifted with the right geohydrology, it is possible to create low carbon heating networks from a range of other sources including rivers and waste. Elsewhere, innovative local actors are working to deliver green heating systems that are compatible with local resources.
Nationally, low carbon heat networks account for just over 2% of the market – the target for 2050 is 20%. Funding for GEC has come from the government’s Heat Network Investment Programme, followed by additional grants from the Green Heat Network Fund. The latter has just been extended for three years, with another £288m available to public, private and third sector organisations.