- The UK’s Mining Remediation Authority (MRA) signed a new mine water heat agreement with Lanchester Wine Cellars, extending the partnership until 2044 and creating a framework for other businesses to tap disused coal mines for geothermal heat.
- Lanchester Wines operates two open‑loop water source heat pumps at its warehouses in Gateshead. The pumps have a combined capacity of 4 MW and heat more than 33,000 square metres of warehouse space. The company has invested about £13 million in renewable heat and energy generation.
- Mine water geothermal energy could provide low‑carbon heat to homes and businesses across former coalfields, and the deal signals growing momentum for repurposing industrial legacies into clean energy assets.
A British wine merchant better known for bottling Shiraz than drilling wells is showing how old coal mines can power the low‑carbon economy.
Lanchester Wine Cellars has signed a long‑term agreement with the Mining Remediation Authority to use warm water from abandoned coal workings to heat its warehouses until 2044. The agreement not only secures decades of renewable heat for Lanchester but sets a precedent for other businesses looking to tap one of Britain’s untapped geothermal resources.
Lanchester Wines installed two open‑loop water source heat pumps at its Gateshead facilities in 2021 after discovering that disused mine galleries beneath the site contained water at a constant 14-20°C. The pumps extract the heat, amplify it through compressors and distribute it via a heat‑exchange system.
With a combined capacity of 4 MW, the system heats over 33,000 m² of warehouse space and has dramatically cut the company’s reliance on gas and electricity. The company estimates that mine water heat has reduced its carbon emissions by more than 500 tonnes per year. It also runs wind turbines and solar arrays, making its operations nearly self sufficient.
The new agreement builds on this success. Under the revised Heat Access Agreement, Lanchester Wines will continue to use mine water until at least 2044 and can adjust its operations without renegotiating permissions. The MRA notes that the contract introduces “greater flexibility, including provisions for business transitions and operational changes” and removes “unnecessary barriers to access”.
Early mine water heat projects faced legal and regulatory hurdles: obtaining access rights to flooded mines, proving safety, and demonstrating that water extraction and reinjection would not cause subsidence or contamination.
Forgotten resource
Coal mining left Britain with thousands of kilometres of underground galleries. When mines were abandoned, many shafts filled with water that retains the earth’s natural warmth. The Coal Authority estimates that the UK’s mine water reservoirs could provide the equivalent of billions of pounds of natural gas and deliver a consistent source of low‑carbon heat for centuries.
Yet until recently, only a handful of projects tapped this resource. Lanchester Wines was the first private business in Britain to do so.
By working closely with the MRA, the company helped design a framework to open this resource to others. “Lanchester Wines has been a true pioneer,” said Richard Bond, innovation and services director at the MRA. “Its willingness to share knowledge and invest for the long term drives real change”.
The agreement, Bond added, provides a clear pathway for businesses interested in mine water heat, setting out technical standards, environmental safeguards and commercial terms.
Veronica Cleary, director at Lanchester Wines, said the partnership shows how industry and government can collaborate to unlock new sources of clean energy. The company’s experience suggests that mine water heat can be commercially viable, reducing energy bills and carbon footprints while providing stable heat.
Cleary hopes other firms in former coalfields will follow suit, creating a cluster of geothermal projects that revitalise post‑industrial regions.
Heating and hot water account for around a third of Britain’s greenhouse gas emissions. Decarbonising the sector will require a mix of solutions, including heat pumps, district networks and hydrogen. Mine water heat offers an advantage: it is local, constant and does not rely on weather or imported fuel.
The government’s nascent geothermal strategy will need to address liability, water licensing and grid integration. Meanwhile, local authorities in former coalfield areas are already assessing district heating schemes that could connect homes, schools and hospitals to mine water networks.
