Deep Geothermal Well Drilling Works

Award outcome

Description

The University of York ("the Authority") has launched an exciting deep geothermal energy project as a transformative step in its journey to Net Zero. The project aims to cut our fossil fuel consumption by 78% as part of our Sustainability Plan 2030 targets and making a substantial contribution to reducing the City of York's overall carbon footprint. This multi-phased initiative will leverage the Earth's natural heat to provide sustainable energy solutions for our campus and potentially the wider community. The project positions the University of York, City and region as a leader in sustainable energy innovation, combining geothermal exploration with our renowned research and educational expertise. Further details regarding the project can be found on the university website here https: //www.york.ac.uk/about/sustainability/campus-operations/climate-action/geothermal-energy/ The Authority is seeking to appoint a contractor to deliver a deep geothermal doublet system consisting of a production well of more than 4km, and an injector well of more than 3km, with the aim of extracting geothermal heat to supply the Authority's campus district heat network, thereby removing the need for CHP units in an effort to meet the university's net zero goals. This phase of the project was awarded funding from the government's Public Sector Decarbonisation Scheme in April 2025. The successful contractor shall be required to fully deliver the project, which shall involve the drilling and all associated activities. The Authority is therefore wishing to engage with participants who can deliver a complete 'turn key' project on their own, or as a joint or consortia bid headed by a lead contractor. A preliminary market engagement (PME) process was advertised and market engagement conducted. The PME resulted in the production of a strategy to procure the drilling contractor, an understanding of the market conditions, and the preferred form of contract to be used. The project shall be delivered by the Authority and York University Energy Supply Company (YUESCo) which is the Authority's wholly owned subsidiary company responsible for the Authority's on-campus energy production and distribution. Participants should note that orders shall be placed by YUESCo on behalf of the Authority. The Authority has sufficient funding in place to deliver the project, and is actively seeking additional funding (both internal and external) to potentially deliver a subsequent production well for research or other use. For clarity, the estimated total value stated in this notice is an estimate of maximum value covered by secured grant funds to deliver the initial two well project and ancillary projects (circ £20,000,000 exVAT), and also an estimated value to deliver a subsequent third well should the Authority secure additional funds (circ £15,000,000 exVAT).

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