Scope
Reference
UY PROC 1195
Description
In 2025 the University of York ("the Authority") 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/geothermalenergy/
The Authority has conducted a tender process 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 tender process has concluded, and a successful contractor selected to fully deliver the project, which shall involve the drilling and all associated activities.
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.
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).
Contract 1. Deep Geothermal Drilling Works
Supplier
Contract value
- £35,000,000 excluding VAT
- £42,000,000 including VAT
Above the relevant threshold
Award decision date
17 February 2026
Date assessment summaries were sent to tenderers
17 February 2026
Standstill period
- End: 26 February 2026
- 8 working days
Earliest date the contract will be signed
27 February 2026
Contract dates (estimated)
- 27 February 2026 to 31 December 2027
- Possible extension to 31 January 2028
- 1 year, 11 months, 2 days
Description of possible extension:
The University requires drilling activity for the production and injector wells to be completed by the 31st December 2027. The University is actively seeking additional funding to drill an additional production well for research or other purposes and wishes to have a contractual option available to extend the agreement with the successful contractor on mutual agreement to drill an additional production well (estimated additional 12 month period through to 31st December 2028).
Main procurement category
Works
Options
The right to additional purchases while the contract is valid.
The University is actively seeking additional funding to drill an additional production well for research or other purposes and wishes to have a contractual option available to extend the agreement with the successful Contractor to drill an additional production well.
CPV classifications
- 24951110 - Drilling mud
- 34514300 - Platforms drilling rigs
- 43132200 - Drilling rig
- 43132300 - Drills
- 43136000 - Downhole equipment
- 43611000 - Parts for well-drilling machinery
- 45000000 - Construction work
- 71320000 - Engineering design services
- 71331000 - Drilling-mud engineering services
- 71332000 - Geotechnical engineering services
- 71333000 - Mechanical engineering services
- 71351000 - Geological, geophysical and other scientific prospecting services
- 73100000 - Research and experimental development services
- 76211200 - Mudlogging services
- 76300000 - Drilling services
- 76410000 - Well-casing and tubing services
- 76420000 - Well-cementing services
- 76450000 - Well-management services
- 76460000 - Well-support services
- 76470000 - Well-testing services
- 76480000 - Tubing services
- 76490000 - Well-completion services
- 76500000 - Onshore and offshore services
Contract locations
- UKE21 - York
Information about tenders
- 4 tenders received
- 4 tenders assessed in the final stage:
- 3 submitted by small and medium-sized enterprises (SME)
- 0 submitted by voluntary, community and social enterprises (VCSE)
- 1 supplier awarded contracts
- 3 suppliers unsuccessful (details included for contracts over £5 million)
Unsuccessful suppliers
Submission
Submission type
Requests to participate
Procedure
Procedure type
Competitive flexible procedure
Suppliers
CONSORTIUM DRILLING LIMITED
- Companies House: 13475714
- Public Procurement Organisation Number: PZHY-3246-BQWR
5 Westbrook Court
Sheffield
S11 8YZ
United Kingdom
Website: http://www.consortiumdrilling.com
Region: UKE32 - Sheffield
Small or medium-sized enterprise (SME): Yes
Voluntary, community or social enterprise (VCSE): No
Jardboranir hf
- Public Procurement Organisation Number: PCCQ-5243-DNBT
Dalshraun 1b,
Hafnarfjordur
220
Iceland
Website: http://www.jardboranir.is
Small or medium-sized enterprise (SME): Yes
Voluntary, community or social enterprise (VCSE): No
P R MARRIOTT DRILLING LIMITED
- Companies House: 02592487
- Public Procurement Organisation Number: PGGZ-7621-XMMQ
Spring Water House Old Pit Lane
Chesterfield
S45 9BQ
United Kingdom
Email: commercial@marriottdrilling.com
Website: https://www.marriottdrilling.com
Region: UKF12 - East Derbyshire
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Supported employment provider: No
Public service mutual: No
Contract 1. Deep Geothermal Drilling Works
STAR ENERGY GROUP PLC
- Companies House: 04981279
- Public Procurement Organisation Number: PLPT-1179-WVTY
Welton Gathering Centre, Barfield Lane Off Wragby Road
Lincoln
LN2 2QX
United Kingdom
Website: https://www.starenergygroupplc.com/
Region: UKF30 - Lincolnshire
Small or medium-sized enterprise (SME): Yes
Voluntary, community or social enterprise (VCSE): No
Contracting authority
University of York
- UK Register of Learning Providers (UKPRN number): 10007167
- Public Procurement Organisation Number: PRDQ-5539-WTHX
Heslington
York
YO10 5DD
United Kingdom
Region: UKE21 - York
Organisation type: Public authority - sub-central government