Octopus Energy commits to purchase 3 MW of geothermal output from Geothermal Engineering Limited (GEL)

Octopus Energy's commitment to purchase 3 MW of constant geothermal output from Geothermal Engineering Limited (GEL) via a Power Purchase Agreement (PPA) represents a significant development for the United Kingdom's emerging geothermal sector. This announced PPA, originating from GEL's United Downs facility, is projected to supply clean energy for approximately 10,000 U.K. homes, underscoring a tangible move towards diversifying the nation's renewable energy mix with a baseload power source. This deal is notable for several reasons. It marks one of the earlier commercial PPAs for geothermal energy in the United Kingdom, a market where this technology is still in its developmental stages. The involvement of Octopus Energy, a prominent energy supplier with a focus on renewables, as the offtaker provides crucial long-term revenue certainty for GEL, an independent power producer pioneering geothermal development. While the financial value remains undisclosed, the 3 MW capacity is a foundational step for the United Downs project and signals growing confidence in geothermal's potential to contribute to the UK's energy transition landscape.