Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government is taking to incentivise (a) investment in and (b) development of deep geothermal energy projects.

The Government believes that geothermal energy has an important role in the United Kingdom’s transition towards net-zero, particularly in the decarbonisation of heat. The most promising use of geothermal energy in the UK is in district heating schemes, also known as heat networks.

The Government has been supporting the deployment of heat networks powered by geothermal energy. Geothermal projects can seek capital funding from the Heat Networks Investment Project (HNIP) (2018-2022) and as part of the project we have funded a £3.5m to an innovative Colchester shallow geothermal network. In terms of future support, we are currently considering geothermal energy as a low carbon technology to be within scope of our new £270m Green Heat Network Fund (2022-2025). The eligibility criteria for the fund were the subject of our consultation which closed on 29th January this year, and the response will be published in due course.

Finally, to encourage investment and drive costs down, the Government has funded £31m to the UK Geoenergy Observatories which will provide world-class infrastructure for a wide range of geoenergy related research. This research facility aims to attract leading geothermal scientists and engineers from all over the world, and the knowledge, expertise and technology generated from this research will propel the UK to becoming a leader in this field.