Login Register

Cornish "hot rocks" project loses Government' funding

By WBjridge  |  Posted: April 02, 2013

Ryan Law, managing director of Geothermal Engineeering Ltd

Ryan Law, managing director of Geothermal Engineeering Ltd

Comments (2)

The Government has withdrawn its contribution towards a £50 million scheme to create energy using the heat from rocks deep underground near Redruth.

Geothermal Engineering Ltd was awarded £6 million last year from the Regional Growth Fund for the project which is earmarked for United Downs, between St Day and Carharrack.

But the company's failure to attract private funding for the scheme has led to the award being rescinded.

A spokesman for the Department for Business Innovation and Skills said: "The offer of Regional Growth Fund support for Geothermal Ltd has now been withdrawn as the company was unable to raise sufficient private sector investment to make this project work.

"We recognise that this news will be disappointing for the project and for the local area, but we must ensure that all RGF projects represent a robust and effective scheme for the region - one that brings in private sector investment, creates long-term jobs and represents value for the taxpayer."

The withdrawn money will be recycled back into the RGF scheme so that it can be used for other projects.

Ryan Law, MD of Geothermal Engineering Ltd, described the news as "unfortunate", but said the project was not dead.

He said: This was unfortunate, but not entirely unexpected. 

"We had hoped that deep geothermal electricity would receive a tariff that would put us on a level playing field with Germany. 

"Unfortunately this did not happen and our industrial partners decided to invest elsewhere in Europe. 

"As the RGF was dependent on private investment, DBIS didn't have that much choice but to withdraw the offer.

"We will still continue with the United Downs project, but we do not think that substantial private investment will be forthcoming until the Feed in Tariff level for deep geothermal electricity is competitive with other countries in Europe."

Do you have something to say? Leave your comment here...

max 4000 characters

2 comments

  • cweatherhill  |  June 13 2013, 9:13PM

    What the hell? The original, and successful hot rocks" project at Rosemanowas ended when a Tory government pulled the funding. Now another has done the same damn thing! Government is not serious about green energy. Geothermal is totally clean, safe, limitless as long as the planet has a molten core, doesn't blight the landscape, doesn't kill birds and bats, doesn't have to be turned off if the wind gets too strong. It is Cornwall's future - we could power the whole of Britain from our volcanic rocks at depth. The wealth would transform the Duchy's fortunes. Ah - that's why London pulled the funding........

    Rate   1
    Report
  • willythefish  |  April 02 2013, 4:15PM

    But our masters will continue to subsidise turbines. I wonder why? Anything to do with vested interests - mainly large landowners?

    Rate   5
    Report

      YOUR COMMENTS AWAITING MODERATION

       
       

      MORE NEWS HEADLINES

       
       
       

      MOST POPULAR