New investment to fund UK’s first deep geothermal plant in Cornwall
£15 million funding from Kerogen Capital and Thrive Renewables will expand the development of electricity and heat production in the UK
Geothermal Engineering has secured £15 million funding to expand the development of deep geothermal electricity and heat production across the UK - including in Cornwall.
The investment from Kerogen Capital and Thrive Renewables will fund UK’s first deep geothermal plant at United Downs site in Cornwall.
The funds will be used by Geothermal Engineering Ltd to deliver electricity by 2024 as part of its mission to provide 25 MWe of baseload electricity and 100 MWh of heat energy across its geothermal portfolio by 2028, enough heat and power for 70,000 homes.
It hopes to be an 'important first step' for the UK’s growing geothermal industry.
Ryan Law, Managing Director of Geothermal Engineering Ltd, said:
"Geothermal resources have the potential to produce carbon free electricity and heat 24/7 within UK borders and we are delighted to welcome this further investment in our journey to realising the huge potential of this important renewable energy source. We are excited to work with both local and national Government to maximise this opportunity and make the UK a world leader in geothermal energy.
"With its mining and industrial heritage, and geological expertise the UK is well placed to succeed. Alongside geothermal power and heat production, our trials at site suggest that there is also the opportunity to develop a strong, zero carbon domestic lithium industry linked to the power plants".
The funding, officially announced today, will advance both the flagship project at the United Downs site in Cornwall and its Geogen geothermal development portfolio.
The new funding will be used to complete power production at the United Downs plant by 2024, as well as prepare new geothermal sites in Cornwall which have recently received planning permission. In total, the investment will help to initiate 25 MWe of renewable electricity and 100 MWth of renewable heat across GEL’s portfolio by 2028.
Rt Hon Graham Stuart MP, Minister for Energy Security and Net Zero, added:
"Geothermal energy holds enormous untapped potential as a renewable energy source, with the ability to generate around-the-clock power and heat for UK households. This investment will help the UK realise the potential of this exciting resource, providing skilled green jobs and supporting local industry in Cornwall, while helping to deliver a cleaner energy future".
Jason Cheng, CEO and Co-Founder of Kerogen Capital, said:
"We are very excited to be partnering with GEL which is developing the UK’s most advanced geothermal power and heat project. The UK has large geothermal natural resources with the potential to satisfy the UK’s entire heat demand, as well as playing a significant role in decarbonising heat and power. In addition, geothermal can provide security and independence from imported energy.
"We believe geothermal in the UK has enormous potential to create a new industry, grow a domestic supply chain and drive employment. The investment in GEL represents our third in the geothermal sector, following our backing of Yeager Energy (Netherlands) and GTML (Norway). Our in-house technical and commercial expertise position us uniquely to deploy in this exciting sector".
Matthew Clayton, Managing Director at Thrive Renewables, said:
"Having provided the first commercial funding into United Downs, which has enabled it to reach the construction stage, we are delighted to make a further investment to get this ground-breaking project into operation.
"United Downs will provide vital renewable baseload power to replace coal and gas, reliable heat to the local community, and could be the start of a whole new sustainable industry across Cornwall bringing green jobs and investment into the county. As a pioneering clean energy investor, we are pleased to be part of this significant step in the UK’s transition to a cleaner energy system".