Energy

Geothermal Energy Lithium delivers energy for Octopus

Geothermal Energy Lithium (GEL) is delivering one of the UK’s first constant geothermal electricity deals with Octopus from its United Downs plant in Cornwall.
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James Evison

Geothermal Energy Lithium (GEL) is delivering one of the UK’s first constant geothermal electricity deals with Octopus from its United Downs plant in Cornwall.

Octopus Energy has signed a long-term contract to purchase at least 3 MW of constant, weather-independent power from United Downs, which is enough to supply 10,000 homes. 

GEL has two other deep geothermal sites currently under development in Cornwall which will deliver a further 10 MW of base-load geothermal power in the UK by 2030. 

The British Geological Survey has calculated that more than 200 GW of thermal heat could be produced from onshore geothermal sources – the equivalent of more than 100 nuclear power stations.

GEL has also started commercial scale production of zero-carbon lithium carbonate, the key raw material used in the production of rechargeable batteries, including those that power electric vehicles and energy storage systems. From its February 2026 starting point, GEL the plant has the capacity to produce 100 tonnes per annum. 

The geothermal fluid at United Downs that is used for the power plant comes from one of the deepest wells drilled on UK soil at over 5km deep. The water brought to the surface contains more than 340 parts per million (ppm) of battery-grade lithium carbonate equivalent (LCE).

GEL aims to scale its production to over 18,000 tpa over the next decade, enough for around 250,000 EV batteries a year – 65% of the UK’s 2024 Battery Electric Vehicle (BEV) registrations.    

Chancellor of the Exchequer, Rachel Reeves, said: 

“We have the right economic plan to build a stronger and more secure economy – cutting the national debt, creating the conditions for investment and growth in every part of the country, and cutting the cost of living. That’s why I took £150 of costs off household energy bills at the Budget and ramped up investment in new, clean energy projects and infrastructure.”

“This pioneering project is a huge opportunity for Cornwall to unlock investment, drive economic growth, support jobs, and establish the region as a vital player in Britain’s energy security.”

Dr Ryan Law, CEO of GEL, said: 

“We are proud to be at the forefront of this landmark step for the UK, generating electricity and lithium by harnessing the resources beneath our feet. This is a huge advancement for geothermal power in the UK and the beginning of our expansion plans. Geothermal energy and critical minerals extraction are naturally complementary as they share the same subsurface resource.

“The hot, mineral-rich fluids that generate clean electricity can also be processed to recover strategic materials like lithium carbonate. Therefore, collocating power and mineral extraction plants maximises investment in the wells, minimises subsurface disruption and accelerates the transition to secure domestic supply in both critical sectors. The United Downs plants prove we can do this in a way that benefits the climate, communities, and the economy.”

Dr Alan Whitehead, Minister of State in the Department for Energy Security and Net Zero said: 

“The UK’s first ever geothermal power is a groundbreaking moment for UK energy innovation, powering thousands of homes with clean, homegrown power.  With zero‑carbon lithium now being produced here in the UK, British businesses are leading the way in securing the materials needed to power the next generation of electric cars.”

Greg Jackson, Founder of Octopus Energy, said: 

“Bills are still too high, and the answer is more homegrown, renewable energy. For the first time, we’re bringing deep geothermal power to British homes – a clean, constant energy source right beneath our feet. Projects like United Downs show how the UK can cut bills and carbon by tapping every ounce of our renewable potential.”

Jason Cheng, CEO of Kerogen-CX, said: 

“United Downs is a major milestone for UK geothermal and a strong validation of our investment strategy. We believe the sector is at an inflection point and are committed to scaling it across the UK and Europe. Geothermal represents a compelling opportunity to drive economic growth while advancing systemic decarbonisation and advancing the energy transition.

“With rapid expansion underway across Europe and multi gigawatt onshore potential in Great Britain, the UK has a clear opportunity to scale a secure, always-on source of domestic renewable heat and power.”

Luca Pozzoni, Deputy CEO of Exergy International, said:

“We are honoured to have been selected for this pioneering project, which contributes to decarbonisation while bringing added value to the region. Looking ahead, we hope to become a long-term and stable part of the local industrial landscape, building strong partnerships and supporting the growth of geothermal energy in the UK.”

Image courtesy of GEL

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