Geothermal Engineering has secured £15m from Kerogen Capital and Thrive Renewables to fund the UK’s first deep geothermal plant at United Downs in Cornwall.
The funds will be used by Geothermal Engineering to deliver electricity at the site by 2024 as part of its mission to provide 25MWe of baseload electricity and 100MWh of heat energy across its geothermal portfolio by 2028 That’s enough heat and power for 70,000 homes.
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 investments it has made into geothermal developers and projects across Europe, building a leading portfolio in this emerging technology.
In addition to the current funding, renewable energy investment company, Thrive Renewables, made its first commercial investment of £3m into United Downs in January 2020 to support final testing of wells at the site, as well as £0.47m in 2021 to fund planning applications for additional potential geothermal sites.
“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,” said managing director of Geothermal Engineering Ryan Law.
“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 was welcomed by UK government, with Minister for Energy Security and Net Zero Graham Stuart (pictured) adding: “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.”