Geothermal welcomes funding move

Hot rocks energy
High hopes for 'hot rocks' energy

Geothermal Engineering Ltd is to apply for funding announced last week by the Department for Energy and Climate Change (DECC).

DECC is making £6 million available from a ‘Challenge Fund for Deep Geothermal Energy’. Geothermal Engineering recently revealed plans to build the UK’s first commercial-scale geothermal power plant just outside Redruth.

The DECC fund has been welcomed by Geothermal Engineering’s MD and founder Ryan Law. He said: “The US and Germany are already pouring millions into the geothermal industry to help kick-start commercial production. The UK has a good deep geothermal resource but we have a long way to go before we realise its full potential.

“DECC’s announcement is a step in the right direction and, for us, certainly a very welcome one. Geothermal energy is a renewable, green and economical power source and I’m absolutely convinced that this a resource we must develop if we’re to meet the energy needs of the future.”

The geothermal power plant planned for Cornwall will cost a total of £40 million to build. The power plant in Cornwall will produce 10MW of electricity, to be fed into the National Grid; and 55MW of heat energy, which will be provided free of charge for local use. Geothermal Engineering Ltd is working with an investment bank to raise additional capital.