£6million is
available from today to fund exploration for natural energy under
the ground. Deep geothermal is a renewable energy that uses the
natural heat from deep underground to produce non-intermittent
electricity and heat at the surface.
£6million is available from today to fund exploration for natural
energy under the ground. Deep geothermal is a renewable energy
that uses the natural heat from deep underground to produce
non-intermittent electricity and heat at the surface.
The fund, part of the Department of Energy and Climate Change low
carbon investment fund will help companies carry out exploratory
work needed to find viable sites for this technology.
Energy and Climate Change Minister, Lord Hunt said:
“Deep geothermal energy is an exciting and innovative technology
that could provide clean, low carbon and renewable power and heat
for the UK.
“We want to make sure that this energy resource can play a part
in the future low carbon energy mix. Deep geothermal power from
the South West of England alone could meet 2% of the UK’s annual
electricity demand, potentially creating thousands of jobs in the
building and running of new power plants.”
Many countries worldwide - including the US and Australia - are
switching on to the potential for deep geothermal power to provide
low carbon, non-intermittent energy. Power from deep geothermal
would strengthen and diversify the UK’s energy mix and would
lessen dependence on imported fossil fuels.
There is currently one geothermal energy station in the UK - the
Southampton District Energy Scheme. The station uses hot water
pumped from 1800m below ground as part of the city’s district
heating network and has operated successfully for over 20 years,
saving an estimated 11,000 tonnes of CO2 per year.
Projects in England, Scotland and Wales are eligible to bid to
the fund. There will be £4 million available this year and £2
million next financial year.
Project bids will be assessed and managed by panel established by
the Department of Energy and Climate Change. The closing date for
bids for the first round of the fund will be 20 November 2009 with
the successful projects to be announced shortly after that.
Notes to Editors
1. Potential bidders to the Deep Geothermal Challenge Fund can
find out more about the bidding process, including the list of the
criteria, at: www.decc.gov.uk/deepgeothermal
2. The fund is part of DECC’s low carbon investment fund. The
timetable for the second round of funding will be confirmed later
in the year, though provisionally we expect the deadline for bids
to be end-march 2010.
3. Following the banding of the Renewables Obligation, which came
into effect on 1 April 2009, electricity generated from geothermal
technology falls into the ‘innovative’ technology band and is thus
eligible for support at a rate of 2 Renewable Obligation
Certificates (ROCs) per MWh generated. More detail about the
Renewables Obligation can be found at: http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/policy/renew_obs/renew_obs.aspx
4. Heat generated from deep geothermal power would be renewable
heat. DECC is developing the Renewable Heat Incentive (RHI), a
financial support mechanism for renewable heat, and a consultation
on the form of the RHI is due to be published before the end of
this year. The consultation will cover the treatment of all forms
of renewable heat, including heat from deep geothermal sources.
5. Support for power generated from deep geothermal energy is
already available though the Renewables Obligation (at the highest
band of 2 ROCs/MWh) and heat from deep geothermal sources could
also be eligible for support from the forthcoming Renewable Heat
Incentive.
6. DECC officials have been working with the emerging deep
geothermal industry and are considering future regulatory aspects
of the sector, such as possible systems for licensing the
exploration and exploitation of deep geothermal heat.
7. Southampton City Council Press Office contact details: on
Environment and Transport - Oliver Harry, 023 8083 2756 or oliver.harry@southampton.gov.uk
8. The Department of Energy and Climate Change is central to
the UK Government’s leadership on climate change. We are pushing
hard for an ambitious global deal in Copenhagen in December to
avert the most dangerous impacts. Through our UK Low Carbon
Transition Plan we are giving householders and businesses the
incentives and advice they need to cut their emissions, we are
enabling the energy sector’s shift to the trinity of renewables,
new nuclear and clean coal, and we are stepping up the fight
against fuel poverty.
Contacts:
Department of Energy and Climate Change
nds.decc@coi.gsi.gov.uk
Helen MacBain
Phone: 0300 068 5219
helen.macbain@decc.gsi.gov.uk