The Government has lifted a ban on the controversial process of shale gas exploration known as fracking.
Ministers have allowed gas company Cuadrilla to resume operations in Lancashire, which were halted in 2011 when test-drilling caused two minor earthquakes.
Energy Secretary Ed Davey said exploration could now continue in the county but will be subject to regular seismic risk assessments.
Fracking involves drilling holes deep into the ground and then using high-pressure liquid to fracture shale rocks to release gas trapped inside.
Cuadrilla believes it could supply a quarter of the UK's gas needs from the resource in Lancashire, leaving the country less reliant on foreign imports from Qatar or Russia.
There are also hopes it could help bring down energy prices.
The decision by Energy Secretary Ed Davey came after the Treasury had signalled its support for the budding industry, proposing tax relief for shale gas and unveiling a gas generation strategy.
Environmentalists argue that the fuel has no place in the move to a low-carbon economy and insist continuing to rely on gas could stop the UK meeting its emissions targets.
There are also concerns that fracking can cause local environmental problems, including polluting water supplies and damaging development.
Friends of the Earth senior energy campaigner Tony Bosworth said: "Gambling on shale gas is a risk we don't need to take - developing our huge clean power potential and cutting energy waste will create jobs, reduce our fossil fuel dependency and keep the lights on."
The move to let Cuadrilla resume its work will also have consequences for other companies keen to potentially exploit the resource elsewhere in the UK.
Its chief executive Francis Egan told the Commons Energy and Climate Change Committee earlier this week that he believes it can provide 25% of the UK's gas demand.
He insisted that pursuing fracking would have huge benefits, including creating tens of thousands of jobs and raising significant tax revenues.
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