The Department for the Economy is currently consulting on proposals for a new geothermal licensing framework in Northern Ireland. Geothermal energy has the potential to provide some farm businesses with a secure, low-carbon source of heat, particularly where there is a significant or consistent demand for heat on farm. For properties located beyond the gas grid, this technology could offer another option for reducing exposure to volatile energy prices. However, suitability will depend on the individual farm, the local geology, the scale and consistency of the heat demand, and the cost of feasibility work, drilling, and installation.
A 2022 Queen’s University Belfast report commissioned by the Department found that Northern Ireland has benefitted from more than four decades of geological research indicating favourable conditions for development here, including significant potential associated with the Triassic Sherwood Sandstone formation beneath parts of the province. However, it warned that the sector remained at a very early stage and recommended a coordinated government strategy involving financial support for feasibility work and drilling, further geological research and data sharing, specialist skills, and visible demonstrator projects to prove the technology in practice. The report reinforces that an appropriate licencing framework is only one part of what will be required to unlock Northern Ireland’s geothermal potential. The Department is already seeking to test this potential through the GeoEnergy NI programme, which is investigating selected locations, including CAFRE Greenmount and the Stormont Estate, and gathering evidence on how geothermal resources could be used in practice. The findings from these projects should help reduce uncertainty, but they will also need to be communicated clearly and translated into practical support for prospective farm and commercial developments.
The consultation proposes a regulatory framework under which smaller, lower-risk geothermal systems may be exempt from licensing, while larger, deeper, or more complex projects would require greater regulatory oversight. It suggests that horizontal systems providing less than 60 kW of heat may not require a licence, while many vertical, open-loop, or larger commercial systems would fall within the licensing regime. The UFU is concerned that an arbitrary 60 kW threshold and a simple distinction between domestic and commercial systems could unintentionally capture relatively straightforward farm-scale projects. A farm may require more than 60 kW because a system serves several buildings or there is a high heat demand, but this does not necessarily make the project technically complex or environmentally high risk.
As the geothermal sector in Northern Ireland is still nascent, careful consideration must be given to the level of bureaucracy that prospective developers may face. Depending on the project, this could include approval from the Northern Ireland Environment Agency, an exploration licence, a licence for infrastructure, environmental assessments, and other regulatory requirements. Appropriate safeguards are necessary, but the process should be coordinated and clearly signposted to avoid duplication, delays, or unnecessary cost.
The consultation also proposes that all geothermal heat below 100 metres would be publicly owned. This is a significant proposal with potential major implications for private property rights, underground access, landowner consent, and compensation. Under the proposed model, the Department would licence access to that resource, while landowners would continue to control access at the surface. However, the consultation does not clearly explain how this distinction would operate where a geothermal development extends beneath privately owned land without requiring entry onto the land at surface level. This raises important questions about whether a licensed operator could access or extract heat beneath neighbouring land without the landowner’s agreement, whether boreholes or other infrastructure could pass beneath private property, and what rights affected landowners would have to be notified, object or seek compensation. There is also insufficient detail on how any such activity could affect the future use, development or value of the land.
The UFU is concerned that the consultation seeks views on the principle of public ownership before the associated legal and practical safeguards have been fully developed, and the consultation as a whole is not detailed. We are engaging rapidly with the Department to obtain greater clarity on landowner consent, underground access, notification, compensation and the precise rights that a geothermal licence would confer. These issues will need to be resolved before farmers and landowners can properly assess the implications of the proposed framework.
The consultation also refers to operators being required to demonstrate appropriate technical expertise and to a potential role for the Geological Survey of Northern Ireland in assessing the ‘suitability’ of projects. Considerably more discussion is required on what these requirements mean in practice, and competency standards must be proportionate and should allow technical expertise to be obtained through qualified contractors or advisers rather than requiring every farmer or landowner to hold qualifications personally.
More broadly, the consultation focuses heavily on regulation but provides little detail on how the Department intends to support the development of a viable geothermal sector. Licensing alone will not overcome the high upfront costs of feasibility studies and drilling, limited access to specialist expertise, uncertainty around performance, and the lack of practical experience of geothermal projects in Northern Ireland.
The UFU is attempting to engage directly with the Department at an early stage to raise these concerns and seek greater legal, technical, and economic clarity. Farmers and landowners who believe that geothermal energy could form part of their future business plans are encouraged to examine the consultation and respond. Practical evidence from farmers will be particularly important, including views on likely heat requirements, capital costs, licensing thresholds, and landowner rights and consent. Any future framework must be proportionate, affordable, and respectful of landowners’ rights.
More information on the consultation, which closes on 7th August, can be found here: https://www.economy-ni.gov.uk/consultations/proposals-geothermal-regulation-consultation
