Deep Geothermal Drilling Works

University of YorkcontractFind a TenderRef ocds-h6vhtk-051093Procurement Act 2023pending
View buyer

Estimated value

Awarded value

£35.0m

Awarded 17 Feb 2026

Suppliers

1

Lots

1

1 awarded

Published

17 Feb 2026

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).

Scope

Reference
UY PROC 1195
Commercial tool
Standalone contract
Contract dates
18 Feb 2026 to 31 Dec 2027
Possible extension to 31 Dec 2028

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).

CPV classifications
24951110
34514300
43132200
43132300
43136000
43611000
45000000
71320000
71331000
71332000
71351000
73100000
76211200
76300000
76410000
76420000
76430000
76440000
76450000
76460000
76470000
76480000
76490000
76500000
Contract locations
Yorkshire and the Humber, United Kingdom

Award criteria

Criteria the buyer will use to evaluate bids.

NameDescriptionTypeWeighting
Commercial (Cost)The commercial criteria details against which Participants will be scored together is found within the published procurement documents. Cost shall make up 40% of the overall tender score.cost40.00%
UK Geothermal Legislation & PermittingCriteria description and question requirements is detailed within the procurement documents.quality1.20%
Proposed Delivery Team StructureCriteria description and question requirements is detailed within the procurement documents.quality3.00%
Stakeholder ManagementCriteria description and question requirements is detailed within the procurement documents.quality1.80%
Risk Identification and MitigationCriteria description and question requirements is detailed within the procurement documents.quality1.80%
Relationship ManagementCriteria description and question requirements is detailed within the procurement documents.quality1.20%
Design DevelopmentCriteria description and question requirements is detailed within the procurement documents.quality6.00%
Research SupportCriteria description and question requirements is detailed within the procurement documents.quality1.80%
Supporting EducationCriteria description and question requirements is detailed within the procurement documents.quality1.20%
Lead Times and Early OrderingCriteria description and question requirements is detailed within the procurement documents.quality3.00%
Managing Down TimeCriteria description and question requirements is detailed within the procurement documents.quality1.80%
TestingCriteria description and question requirements is detailed within the procurement documents.quality1.80%
Site Security and SafetyCriteria description and question requirements is detailed within the procurement documents.quality1.80%
Methodology for Undertaking the WorksCriteria description and question requirements is detailed within the procurement documents.quality6.00%
ProgrammeCriteria description and question requirements is detailed within the procurement documents.quality3.00%
Well Design AppraisalCriteria description and question requirements is detailed within the procurement documents.quality1.80%
Final Tender Development (Design and Build)Criteria description and question requirements is detailed within the procurement documents.quality6.00%
Targeting SupportCriteria description and question requirements is detailed within the procurement documents.quality1.80%
ReactivenessCriteria description and question requirements is detailed within the procurement documents.quality1.80%
LegacyCriteria description and question requirements is detailed within the procurement documents.quality1.80%
CDMCriteria description and question requirements is detailed within the procurement documents.quality1.80%
Extended Rig Use ProposalCriteria description and question requirements is detailed within the procurement documents.quality1.80%
Environmental, Social, and Governance (ESG) ValuesCriteria description and question requirements is detailed within the procurement documents.quality1.80%
Participant's Contract PositionCriteria description and question requirements is detailed within the procurement documents.quality6.00%

Participation

Conditions suppliers must meet to bid.

Please refer to the requirements set out in the procurement documents

The criteria to be used to select participants are provided within the procurement documents. The Authority wishes to select a maximum of five (5) participants to carry forward to tender. The Authority shall only carry forward less than five participants where the market conditions and/or the conditions of participation result in fewer participants being selected.

Submission & procedure

Procedure
Competitive flexible procedure

Award details

Awarded supplier(s), contract period and value as published in the award notice.

Awarded value

£35.0m

Award date

17 Feb 2026

Contract start

27 Feb 2026

Contract end

31 Dec 2027

Awarded to