Geothermal plant boosted by government grant

Investment will see three wells drilled in Cornwall

The UK's first deep geothermal power plant is now one step closer to completion thanks to a £6 million grant from the government's Regional Growth Fund.

The award should “kickstart” the national geothermal industry, Geothermal Energy, the company behind the project, said. Geothermal Energy will use the money to drill three 4.5 km deep wells on the United Downs industrial estate near Redruth in Cornwall. The money will also help leverage private investment for the project, which will cost £50 million in total.

Once up and running, the plant will produce 10 MW of electricity, enough to supply 20,000 homes, and 50 MW of renewable heat that will be distributed locally. If all goes according to plan the drilling rigs will begin boring the holes during the second half of 2012 and the plant will be up and running by 2015.

As the project is the first of its kind it has proved difficult to attract private investment. Ryan Law, managing director of Geothermal Energy, said: “The funding should kick start the geothermal industry in the UK. We're incredibly pleased that the government has finally committed to this technology.”

The company plans to roll out between 20 and 30 similar plants at sites across Devon and Cornwall once the initial concept has been proven. These could supply up to 300 MW of electricity. “The southwest has a great geothermal resource and developing this resource will mean more jobs, more British engineering expertise, and more clean energy for the country,” said Law.