Ecotricity is to buy the electricity generated by Geothermal Engineering’s United Downs demonstration project in Cornwall under a power purchase agreement (PPA), the first time that geothermal electricity will be produced and sold in the UK.
The PPA follows the latest round of successful testing at the deep geothermal site, Geothermal Engineering said.
Under the terms of the deal, Ecotricity will receive a minimum of 3MW of baseload electricity.
In addition, the Cornish Geothermal Distillery Company (CGDC) has submitted plans for the UK’s first geothermally heated biome, which will be used to mature and then distil sustainable rum.
CGDC aims to use renewable heat produced by United Downs, which is backed by Thrive Renewables and the European Regional Development Fund.
Geothermal Engineering founder and managing director Ryan Law said: “We have been working for many years towards this point and are absolutely thrilled to see the different aspects of this pioneering geothermal power plant coming together.
“The testing we have completed recently on the wells, including the deepest well ever drilled on shore in the UK – over three miles deep – shows the significant potential of geothermal energy to supply heat and power, not only at our site but right the way across Cornwall.
“This comes on the back of the recent discovery of high lithium content in our geothermal water.
“We are very excited for the industry, investment and jobs this renewable resource could bring to the region.”
Ecotricity chief executive Dale Vince said: “Geothermal is a really exciting form of energy that is, as yet untapped in the UK.
“We’re pleased to be part of this project and to add the power to our customer’s energy mix. It has a big role to play in our plans to decarbonise the country.”
Geothermal Engineering is hoping to secure planning for future sites over the next two years.
Each site will aim to produce a minimum of 5MW of renewable baseload electricity and up to 20MW of renewable heat which will be available 24/7.