The heating sector accounts for nearly one third of the UK’s annual carbon emissions. Despite the pressing need to achieve net-zero by 2050,  decarbonisation of the heating sector in the UK faces significant challenges. The previous UK government’s delay in curtailing oil and gas projects in the North Sea has served to divert focus away from renewable energy, especially those in early development stage like mine water heating. Here, Dr Jingyi Li, Professor Cathy Hollis, and Dr Alejandro Gallego-Schmid explore the challenges of implementing mine water heating in the UK and suggest how development of this heating sector could be accelerated as we strive to meet net zero.

• Mine water heating can play a strategic role in decentralised heating networks and can bring benefits to the communities they serve.
• Implementation of mine water heating faces challenges like insufficient funding, unclear geothermal legislation, and a shortage of skilled workers.
• To promote the development of this sector, the government should introduce a package of measures including new legislation, changes to funding, and a mandatory CSR programme for fossil fuel companies to support skill transfer in the workforce.

What is mine water heating?

Mine water heating utilises the warm water found in naturally flooded coal mines after their closure. The water can be pumped to the surface and integrated into heat networks, harnessing geothermal energy. Post-coal mining regions, such as the north-east of England, have the opportunity to develop low-carbon, renewable heating solutions, boosting the green economy. Due to its unique location, mine water heating can play a strategic role in decentralised heating networks and benefit the local communities, serving both homes and businesses.

While the feasibility of mine water heating is well established, effective implementation has not occurred in the UK and the deliverability of mine water heating projects at scale remains uncertain.

Barriers to mine water heating in the UK

Our research at The University of Manchester aimed to identify the barriers to effective implantation of mine water heating in the UK. After interviewing representatives from the Coal Authority (now Mining Remediation Authority), local government, industry, and consumer groups, we identified four key challenges as set out below.

Profitability and equity

Unsurprisingly, those responsible for the provision and management of mine water heating developments were focused on the return on investment for their capital expenditures. 80% of respondents cited economic sustainability as a major concern, given the unstable nature of the market.

Consumers of mine water heat also face challenges around energy bills. The Gateshead Mine Water Heating Scheme, for example, offers consumers a 5% reduction in energy prices compared to fossil fuel market rates. However, this benefit is overshadowed by the potential annual price increases.  This, coupled with the need for profitability, creates an inherent disconnect and tension between the economic viability of mine water heating and equitable pricing.

Funding support

Local authorities and private businesses alike have had to take part in fiercely competitive application processes to obtain funding support for the regional renewable energy projects, such as the Heat Networks Delivery Unit and the Green Heat Network Fund. Our research found that funding available from these streams only covered 33% of capital costs, meaning interested local authorities faced substantial financial pressures in meeting the remaining costs. This uncertainty around funding has led to diminished opportunities for both the deliverability and expansion of the mine water heating network.

Legislative uncertainties

The lack of clear legislative terms regarding the ownership of geothermal heat poses a significant barrier. The Coal Authority (now Mining Remediation Authority), issues heat access agreements and imposes charges on applicants. However, industry stakeholders have raised concerns about the legal framework’s adequacy and the obligations it imposes. Complaints have also emerged about protracted licensing processes and non-streamlined procedures, further complicating the widespread adoption of mine water heating.

Talent pipeline

Technical and skills shortages present considerable obstacles. Small to medium-sized mine water heating projects, despite requiring similar expertise, are less appealing to dominant fossil fuel players with long-standing industry lock-ins. The oil and gas industry, benefiting from decades of built infrastructure, expertise, and supply chains, is far more mature and lucrative. Although the mine water heating sector is expanding rapidly, it remains unstable. Without large-scale transformation and stronger policy support, the geothermal sector will continue to struggle to compete with oil and gas for talent. There is a pressing need for engineers, particularly experienced drillers, pipeline engineers, welders, and system integrators, to support the infrastructure needed for an effective heating network.

Mitigating the barriers

Firstly, the government must prioritise economically disadvantaged areas for investment to ensure fair and equitable access to low-carbon heating solutions. The Department for Energy Security and Net Zero (DESNZ) should include assessments of regional poverty and income levels when developing targeted subsidy packages for low-carbon heating programmes. Priority should be given to regions classified as tier 1 on the old Levelling Up agenda and those heavily impacted by legacy industries.

Secondly, economic challenges associated with funding can be mitigated by implementing regular, targeted funding schemes for small to medium-sized renewable energy projects. DESNZ should ringfence an element of the current funding stream for regions that were classified as tier 1 on the old Levelling Up agenda. This would allow for fairer competition among regions with similar economic challenges. Thirdly, government should take steps to introduce legislation that clarifies geothermal heat ownership, drawing on successful international models like the United States’ Geothermal Steam Act of 1970, and New Zealand’s Resource Management Act of 1991. Establishing similar legislation in the UK would provide clarity and confidence for stakeholders, fostering the growth of this renewable energy source. A trackable timeline for applications, clear response time limits for regulatory bodies, and detailed guidance for applicants would eliminate delays and complexities, promoting smoother adoption of mine water heating technologies.

Lastly, the government should consider making corporate social responsibility (CSR) compulsory, particularly for fossil fuel companies, to support skill transfer and workforce development. This could involve requiring these companies to allocate a certain percentage of their net profits to areas such as social welfare, education, regional development, energy transition, green job creation, and skill training during the transitional period, as well as forming partnerships with SMEs in low-carbon energy sectors. A model for this approach can be found in India’s Companies Act 2013, specifically Section 135. This legislation goes beyond profit-making to address societal and environmental challenges through mandatory CSR. Under this act, companies that meet certain financial thresholds are required to spend a minimum of 2% of their average net profits from the preceding three years on CSR activities.

In the long term, the benefits of this investment in infrastructure include greater energy security, stability in pricing, and the potential for lower consumer bills as the sector matures. The government’s support would ensure that consumers are not solely burdened with these costs, making mine water heating an economically viable and sustainable option for the future.

Mine water heating could be an effective way for the UK to strengthen its energy security whilst pursuing its climate goals, should the government take the required steps to provide investment and certainty for the sector.