Geothermal Energy

Laurence Robertson Excerpts

Wednesday 15th September 2021 Westminster Hall

[Mr Laurence Robertson (in the Chair)]

Before we begin, may I encourage Members to wear masks when they are not speaking, in line with current Government guidance and that of the House of Commons Commission? Please give each other and members of staff space when seated, and when entering and leaving the room.

[Owen Thompson (Midlothian) (SNP)]

I beg to move,

That this House has considered opportunities for geothermal energy extraction.

I look forward to today’s debate, and it is encouraging to see so many colleagues in attendance. Tapping into the abundant energy stored in the heat beneath the Earth’s surface is not a new idea, but exploiting those vast resources has often been overlooked in favour of other forms of renewables that are more readily captured on top of the ground. We have come a long way since first using sources such as onshore or offshore wind, tidal and solar energy to decarbonise our electricity supplies, and Scotland now produces about 97.4% of its electricity consumption from renewables.

There is a still a long way to go on decarbonising heat, with heating and hot water making up around 40% of the UK’s energy consumption. The potential for geothermal energy to help plug the gap, providing an indigenous, low-carbon and green alternative for heating homes, is huge. The British Geological Survey’s report into unlocking geothermal potential estimates that resources in the UK

“are sufficient to deliver about 100 years of heat supply for the entire UK”

and to provide the equivalent of 85% of Scotland’s, or 9% of England’s, current electricity demands. Of course, being theoretically available is very different from being technically available, and how easily it can be exploited depends on the detailed nature of geology, the closeness of the population base and the sheer scale of projects, depths drilled and the method of extraction to be considered.

Geothermal energy ranges from shallow-depth ground source heat pumps that are already operating on a small scale to heat individual homes, up to deep geothermal extraction such as the United Downs geothermal power project, which is the deepest production well on UK soil, at 5,275 metres, and which extracts power from the naturally hot water in the granite rocks deep beneath Cornwall. Somewhere between those two scales, we find a happy medium: geothermal used for district heating networks for local homes and businesses. There is so much potential for development of these types of heating schemes, and at far more efficient cost, if we can take advantage of the maze of disused mines full of warm water that is below our feet.

For communities devastated by the pit closures, it would be a fantastic change of fortune to see the legacy of the industrial past being repurposed for a green energy future. I have a particularly keen interest in this option for my constituency of Midlothian, which has a long coalmining history and a vast labyrinth of old pits beneath the ground. We are from unique, as an estimated quarter of UK homes are situated on former coalfields. Repurposing the infrastructure to extract energy from the coalmines yet again, but this time in a sustainable way, is an tremendously exciting prospect.

Although we have the potential, widespread use of geothermal resources is still very limited in the UK. There are many challenges to overcome, including ownership, planning and regulatory frameworks, upfront costs and risks, and the identification of suitable sites. On the latter, I welcome the work by the Coal Authority and British Geological Survey to identify abandoned mines that are potential sources of heat for nearby homes, and to make such information available openly to developers, planners and researchers. Increasing the understanding and knowledge of geothermal at a local level has a long way to go, but it is going in the right direction.

Detailed research under way through the UK Geoenergy Observatories is producing open-access data to assist in developing geothermal from potential to commercial reality. The Glasgow Geoenergy Observatory, which officially opened in December 2020, is focused on mine water and produces what its science lead, Dr Alison Monaghan, described as

“an unprecedented look into the subsurface.”

That is vital to understanding the role that shallow mine-heat energy could have in decarbonising our energy supply, the risk involved in environmental management, and the regulation needed.

The ambitious scale of research facilities should help to kickstart technical innovations and to tackle some of the challenges of geothermal that have perhaps slowed progress in the past. We have been looking into geothermal for quite a while now, without making the most of its potential. Early feasibility studies included the 2004 Shawfair mine-water project in Midlothian, which looked at the potential for using mine water and heat pump technology to supply a new community heating scheme on the site of the former Monktonhall colliery. The report concluded that there was a potential for such a scheme, with mine water contributing up to 1,708 GWh of heat per annum. Frustratingly, progress stalled because of issues around ownership, although much of the work has helped projects in other countries around Europe—so it was not all for nothing.

The British Geological Survey’s report “Unlocking the potential of geothermal energy in the UK” looked at the progress of projects in European countries, such as France, the Netherlands and Germany, that have similar geothermal potential to the UK. It found that geothermal energy was

“contributing ever more significantly to the decarbonisation of the energy mix”,

generating jobs and helping to stimulate the economy. The report says:

“Experience in these countries has shown that the success of geothermal development is closely linked to their governments’ commitment to support this technology through policies, regulations, incentives and initiatives. Such success is linked specifically to 1) the availability of a long-term, stable regulatory framework and 2) the willingness of the state to share economic risks.”

The landscape is messy, and there are many measures that could be taken by the Government to help geothermal to progress more quickly from early stage to establishing a market. Perhaps it is unsurprising that, between 2000 and 2006, after the EU had concluded a major €20 million study into geothermal energy extraction from closed mines in both Midlothian and the Netherlands, the findings were only implemented on the continent, and Midlothian never saw the benefits. That highlights not only the value of the kind of cross-border research that has been stripped away by leaving the EU but also the important role that national Governments play in fostering the success of such schemes.

Among the steps that need to be taken are a reliable financial incentive for geothermal technology and clear, more streamlined regulations to underpin projects. It is fair to say that the Government’s commitment to renewable energy has been half-baked at best so far—remembering the former Prime Minister David Cameron’s flip-flop from “the greenest government ever” to getting rid of the “green crap”. I am sure that there is now an honest enthusiasm for geothermal, but there is ground to be made up, and that requires a commitment to drive things forwards. We need a clear geothermal roadmap, and I look forward to hearing the Minister’s plan in her response.

On a positive note, while there is much to be done, I am pleased to see that we are taking steps in the right directions. Some aspects of the political landscape are, of course, the responsibility of the devolved Governments. While Scotland does not yet have large-scale geothermal projects, Scottish Government funding has supported a number of feasibility studies. The Scottish Government have been working closely with stakeholders to build on the experience of two small-scale geothermal developments in the central belt, which each ran for over a decade. They have also sought to clarify the regulatory framework for deep geothermal projects, producing guidance documentation in liaison with the relevant regulatory authorities. Heat networks will have a key role to play in supplying Scotland’s geothermal heat in the future, so I welcome the Heat Networks (Scotland) Act 2021, which became law earlier this year and will create the circumstances needed to unlock the full potential of the sector and support its growth.

Mine water is not the only overlooked energy resource that can fuel our green ambitions, but it can pose a danger if left ignored. In Midlothian, for example, there are serious concerns about mine-water discharge from the old colliery at Bilston Glen into the River Esk contaminating water, damaging natural habitats and increasing the risk of flooding. Temporary solutions, such as water treatment schemes, might look good in the short term, but they do not deliver anything for communities, and there is no benefit to those who would be impacted by such an outpouring of water. A long-term solution to keep the water levels under control is required, and would help generations to come. That is the kind of forward-looking outlook that the Government need to encourage and foster in the industry.

The green industrial revolution must not leave people behind but get people on board, and geothermal is one way we could do this. With the right support in place, it offers a fantastic opportunity to develop low-carbon heating systems, regenerate local economies and reawaken energy extraction in coal field communities sustainably. The development of mine water geothermal across Scotland alone could deliver economic growth equivalent to £303 million and about 9,800 jobs.

The timing of the debate is critical, as COP26 is just around the corner and the climate crisis is already upon us. I urge Governments of all nations to put aside their differences and work together to find practical solutions, not just warm words, to address it. Let us put meat on the bones of our ambitious geothermal technologies, and help them contribute much more significantly to our low-carbon energy mix. Let us get the policies right and make geothermal a critical part of the green revolution.

--- Later in debate ---

[Jo Gideon (Stoke-on-Trent Central) (Con)]

It is an honour to serve under your chairmanship, Mr Robertson. I congratulate the hon. Member for Midlothian (Owen Thompson) on securing this timely debate on the UK’s opportunity for geothermal energy extraction.

This topic is really important to me as the Member of Parliament for Stoke-on-Trent Central. We are a pioneer city, at the forefront of exploring the geothermal option. I am delighted that this debate places a spotlight on geothermal, which is more environmentally friendly than conventional fuel sources, provides a more reliable clean energy source than other renewable options and offers an operational lifespan of more than 100 years. In addition, geothermal supports the transferability of skills and jobs from the oil and gas sector and provides development opportunities in regions such as the midlands, bringing new jobs and investment to areas that do not currently benefit from renewables such as wind power.

Crucially, the technology supports our transition to net zero. As we look to reduce our carbon footprint through a circular economy based on the principles of reducing, reusing and recycling, it is fitting that Stoke-on-Trent is at the forefront of this movement. The Potteries, home of pots and pits, retains a huge underground maze of former mine tunnels. The coal from those mines fired the kilns and the steelworks, and blackened the skies across the city at the height of its heavy industrial past. We are now powering our city up again, but this time as part of a new green industrial revolution, reducing pollution by investing in improved public transport, growing our nature recovery network, reusing the infrastructure of a former polluting industry to deliver new, clean energy, and recycling the hot water within the mine tunnels through our district heat networks.

Several factors make Stoke-on-Trent an ideal location for the development of this technology. First, the area has ideal geological conditions. Its geothermal gradient, which shows how much the temperature increases as we dig deeper, is greater than expected due to an ancient volcano deep beneath the surface providing untapped potential. We are leading the way with the Stoke-on-Trent district heat network. I thank the Government for providing £20 million for this pilot project. The district heat network features 18 km of piping and has led to affordable and clean energy for a community in the city and the first dedicated skills academy.

The project led by GT Energy to develop a deep geothermal heat plant in Etruria Valley in the city already has planning permission. The development would be the first of its type in the UK and would comprise the initial drilling of two deep exploration boreholes to a depth of approximately 4,000 metres. I believe it will be the first in the world to feed into a district heat network. The proposed development has the potential to bring a host of benefits to the local area, including creating green economy skills and jobs, reducing carbon emissions by 11,000 tonnes per year and generating heat equal to the energy needs of around 4,000 homes.

The exciting project is shovel ready and could be weeks away from starting with the proper Government support. I am grateful to the Department for Business, Energy and Industrial Strategy for enabling Stoke-on-Trent City Council to create a procurement framework to engage with local suppliers of district heat networks. This provides the council with a crucial link to local companies that can complete the required work and enables best practice to be shared more widely as the market grows.

Fundamental to the development of the geothermal market is, as we have heard repeatedly, early Government support. Government support for this early stage technology will unlock private investment, support the industry’s development and reduce cost to consumers over time. Early Government support has been shown to work in other countries in developing geothermal markets by providing confidence to geothermal developers and their investors. With increasing project delivery, market confidence grows and projects become more cost effective and sustainable, requiring less Government intervention as the market matures.

We have heard that this has been the case in other countries such as France, which now has a more mature geothermal market that is cost effective without the need for ongoing Government support. I welcome the Government’s support for the sector through initiatives such as the heat investment network project. Can the Minister confirm that geothermal energy, as a low-carbon technology, will be within the scope of the new £270 million green heat network fund running from 2022 to 2025?

As we approach COP26 and call on our global partners to step up their commitments towards achieving net zero, it is right that we should consider how we can harness the UK’s potential. Does the Minister agree that shovel-ready projects, such as the geothermal project in Stoke-on-Trent, are vital in developing this key energy source ahead of other countries, further demonstrating our commitment to carbon reduction?

[Mr Laurence Robertson (in the Chair)]

We come now to the Front-Bench speeches.