16:59 Kieran Mullan (Conservative)

Helping me in this effort is the all-party parliamentary group on deep geothermal, which the Association for Renewable Energy and Clean Technology helps to administer. I am delighted to spot the hon. Members for Truro and Falmouth (Jayne Kirkham), for Camborne and Redruth (Perran Moon) and for Rushcliffe (James Naish) in the Chamber, who are all members of the APPG, which provides me with an opportunity to recognise and thank them for the work they are doing for the cause.

Deep geothermal energy remains an underutilised resource in the UK, despite its potential to provide reliable renewable heat in particular, and also power. With growing pressure to secure our energy future and decarbonise heating, now is the time to give this technology the attention it deserves. As we work towards energy security and decarbonisation, we must explore every viable renewable energy source. Deep geothermal offers a stable and sustainable solution, yet it remains largely untapped in the UK. To unlock its potential, the Government must take the lead, providing the necessary support to get projects off the ground and demonstrate their long-term viability.

One of the biggest challenges we face in the journey to net zero is the decarbonisation of heating, which must be treated as a priority. The UK has more than 28.5 million homes and 1.9 million other buildings—including offices, hospitals, shops and warehouses—the vast majority of which rely on gas boilers for both heating and hot water. These buildings alone account for nearly one fifth of the UK’s total emissions. The Climate Change Committee has identified decarbonising heat as one of the most difficult yet essential steps in reaching net zero.

Achieving net zero by 2050 requires us to use every tool at our disposal. While much of the Government’s attention has been focused on air and ground source heat pumps, alongside other electrification methods, which have an important and certainly dominant role to play, converting the entire housing stock to those technologies will put immense pressure on our electricity grid and supply chains. That is where deep geothermal stands out. It offers a reliable, low-carbon solution for heating that is not dependent on sun or wind—it is there all year round, whatever the weather—and has been successfully deployed in other countries to great effect.

Since the closure of the non-domestic renewable heat incentive in 2021—unfortunately just as interest was peaking from industry—deep geothermal, unlike solar and wind in their early beginnings, has been without comprehensive Government support to develop the market. There have been encouraging breakthroughs, as was mentioned, and in 2023 the UK’s first operational deep geothermal plant to open in 37 years went online at the Eden Project. Deep geothermal also made its historic debut in allocation round 5 of contracts for difference, with three projects from Geothermal Engineering Ltd securing approval, totalling 12 MW of capacity. At Langarth garden village, green heat network funding is now supporting the development of a geothermal-powered heat network to turn that resource into local supply. Those successes show that, with the right backing, geothermal can become a key player in our transition to clean, sustainable energy.

The UK is already a world leader in tackling climate change and clean energy, having been the first major economy to halve our emissions, and renewables now account for more than 50% of our electricity, up from just 7% in 2010. With deep sedimentary basins in east Yorkshire and Cheshire, granites in Cornwall and Scotland, hot sedimentary aquifers in Surrey, Dorset, and Sussex—in my constituency—the UK’s unique geography puts us in an ideal position to exploit the benefits of geothermal energy.

The Association for Renewable Energy and Clean Technology—REA—worked with Arup to assess the UK’s potential. They estimated that the UK could support 360 geothermal plants, producing 15,000 GW of heat each year, which could supply heating to over 2 million homes through heat networks. Additionally, some of those plants could generate around 400 GW of electricity annually, enough to power a further 150,000 homes.

How might we go further in the short term? I have worked with the industry to develop a ready-made plan. I ask the Minister to look closely at the proposals that the APPG have produced to create a carve-out in the public sector decarbonisation scheme to unlock this opportunity. The PSD scheme has already played a crucial role in helping public sector buildings transition to low carbon heating solutions. However, a specific programme could be carved out to support an initial cohort of deep geothermal projects, ensuring that schools, hospitals and other public buildings can benefit from this reliable, renewable heat source. By doing so, the Government would not only accelerate the decarbonisation of public infrastructure, but provide a strong foundation for the wider geothermal industry to scale up and attract investment.

I have spoken in the Chamber before about how hospitals are fantastic anchor candidates for deep geothermal plants. Industry leaders have identified that, of the 210 NHS hospitals in England and Wales that have been prioritised for decarbonisation due to their high heat demand, 109 overlie potential geothermal aquifers. The advantage of working across the NHS is that we can bundle up opportunities to create a bigger investment opportunity. I know that hospitals across the country are already exploring this, including Eastbourne district general hospital, which services my constituents in Bexhill and Battle.

I hope that I have done an adequate job of showcasing the industry and its potential. Everything we have learned in recent years shows that we need to take advantage of every opportunity. We need to build the biggest coalition, deploy the largest possible workforce and spread the benefits of decarbonising as widely as possible if we are to succeed and bring the country with us in the challenge. I cannot think of a better way of doing that than putting dedicated resources into deep geothermal. I know that it could bring benefits to my constituents and to the constituents of many other Members and unlock hundreds of millions, if not billions of pounds of investment into our economy. I look forward to hearing about the Minister’s plans and ambitions, which I hope will get us there.

I hope that I have done an adequate job of showcasing the industry and its potential. Everything we have learned in recent years shows that we need to take advantage of every opportunity. We need to build the biggest coalition, deploy the largest possible workforce and spread the benefits of decarbonising as widely as possible if we are to succeed and bring the country with us in the challenge. I cannot think of a better way of doing that than putting dedicated resources into deep geothermal. I know that it could bring benefits to my constituents and to the constituents of many other Members and unlock hundreds of millions, if not billions of pounds of investment into our economy. I look forward to hearing about the Minister’s plans and ambitions, which I hope will get us there.

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17:16 Miatta Fahnbulleh (Labour)

I agree that geothermal energy represents an important opportunity—if the hon. Member hears nothing else I say today, I ask him to hear that. It has the potential to deliver clean and secure energy and heat, reducing our reliance on fossil fuel markets. As he mentioned, we are acutely aware that geothermal energy could also support a just transition by creating thousands of jobs that use skills from our oil, gas and coalmining sectors. The Government provide financial support for geothermal projects today, and we will continue to do so. The critical thing is ensuring that this is done at an acceptable cost to consumers and in an environmentally friendly way.

Not just today but over recent years, the hon. Member has made a convincing case for the merits of pursuing deep geothermal. The Government remain committed to exploring the renewable energy opportunities afforded by our geography and geology. However, I hope the hon. Member will understand that the priority now—and the thing my boss has tasked me with—is developing the warm homes plan. It would be premature for the Government to set a geothermal strategy with detailed targets in advance of that plan. For us, it is a question of sequencing; for instance, if we are to make the most of geothermal’s potential, we need to start by creating an environment that enables the growth of heat networks and, crucially, protects consumers along the way.

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