Geothermal Engineering Limited (GEL) has obtained £15m of funding from Kerogen Capital (£12m) and Thrive Renewables (£3m), to support a flagship project in Cornwall, south-west England.
The funding will be used to complete power production at the United Downs plant by 2024.
Some of the cash will also be used for preparing new geothermal sites in Cornwall which have recently received planning permission.
In total, the investment will help to initiate 25MW of renewable electricity and 100MWth of renewable heat across GEL’s portfolio by 2028.
Kerogen Capital, a private equity firm focused on international energy, will fund the investment through its dedicated energy transition platform, CelerateX.
The investment is the latest in a string of moves it has made into geothermal developers and projects across Europe, building a leading portfolio in this emerging technology.
Thrive Renewables’ investment will support final testing of wells at the United Downs site.
The United Downs project is one of the UK’s first integrated deep geothermal power and heat projects.
The plant will deliver 2MW of baseload electricity and up to 10MWth of zero carbon heat to be used in a large housing development at Langarth, being developed by Cornwall Council.
GEL successfully drilled and tested two wells at United Downs in 2019 and 2020, including a production well drilled 5 km underground.
Beyond United Downs, GEL is also developing new geothermal projects across the county, each anticipated to deliver 5MW of baseload power and 20MWth of renewable heat energy for the local area.
The new plants will each take approximately 36 months to complete.
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.”