Geothermal Engineering Ltd has secured £1.5 million in funding from the Department of Energy and Climate Change (DECC).
Subject to planning approval, the money will go towards building the UK’s first commercial hot rocks power plant in Cornwall, which in total is expected to cost around £40 million to construct.
Geothermal’s MD Ryan Law said: “We are delighted to receive this initial funding which, subject to planning, we will use to start the drilling process in 2010. DECC’s investment is certainly a step in the right direction but the UK must be more ambitious in funding renewable energy projects.”
The Geothermal Engineering Ltd power plant planned for near Redruth will produce 10MW of electricity, to be fed into the National Grid and 55MW of renewable heat. Geothermal Engineering Ltd will work with the council on delivering some of this heat to the local community. It is hoped that the plant will help bring long-term investment to a region that is starting to lead the way in low carbon technology.