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.