Geothermal Energy: Clackmannanshire

Stephen Kerr Excerpts

Monday 4th June 2018 Commons Chamber

[Luke Graham]

I would not dare to claim to know more than my hon. Friend about his constituency, but I would say that a key part of the industrial strategy is to have more regional facilities and smaller-scale projects, and I am hoping to advocate doing so tonight.

As I was saying, for comparison, the carbon footprint estimate for an oil boiler is 310 to 550g CO₂eq/kWh or—for those who do not know—grams of carbon dioxide equivalent per kilowatt-hour of electricity generated. For gas boilers, the figure is 210 to 380, for biomass boilers it is somewhere between 5 and 200, although typically they are below 100, while the carbon footprint range for a solar thermal system is 10 to 35 grams of carbon dioxide equivalent per kilowatt-hour of electricity generated. By comparison, the figure for geothermal is only 10. As a result, geothermal energy systems are becoming an increasingly popular low-carbon energy system of choice.

Yet geothermal energy is barely utilised in the United Kingdom. In a Westminster Hall debate on clean growth energy back in March, there was a great deal of enthusiastic support among the small number of Members present. Those who spoke in support of geothermal energy in that debate came from areas where it already exists, or at least where it is being planned. I do not consider it a coincidence that where geothermal energy has already been explored and exploited, there was support and enthusiasm for it. It evidently works, and indeed, we should take note of the enthusiasm expressed in that debate. It is a clean energy source, with the potential to bring jobs and investment to our constituencies, and given the UK’s long history of mining, I refuse to believe that only Clackmannanshire has the potential for geothermal energy to be developed. There was of course one person in that Westminster Hall debate who enthusiastically supported the development of geothermal energy in the United Kingdom—the Minister responding this evening.

The UK has a target that, by 2020, 15% of its energy will be met by renewables. In 2008, renewables constituted just 2.25% of energy sources in the UK. By 2014, this had risen to 7.1%, and 8.3% by 2015. I could not find any more recent figures, so I would be grateful to the Minister if she told us how the UK is performing in 2018, and how it expects to meet its target in 2020.

Although geothermal is still relatively new to the UK, this type of energy is not a particularly new technology. For example, geothermal heating is used in over 70 countries already, while 24 already use geothermal electrical production systems. Furthermore, five countries—Iceland, El Salvador, Costa Rica, Kenya and the Philippines—generate more than 15% of their electricity from geothermal sources. However, across the whole United Kingdom, I could find only nine geothermal energy projects that are in operation or are being planned. Four are in Cornwall, two are in north-east England, and one—the original—is in Southampton. There are two small mine-water geothermal schemes in operation in Scotland: Shettleston in Glasgow and Lumphinnans in Fife, as well as a forthcoming project in Kilmarnock. To put that in context, the fifth largest economy in the world is being outdone by the 106th, 101st, 76th, 68th, and 39th largest economies respectively in geothermal development and energy production.

We still have a way to go. Evidently, we can and should be doing more to invest and develop that clean energy source. In 2013, only 900 jobs in the UK were supported by geothermal energy—500 were directly supported, and 400 indirectly. Given the potential for the expansion of that technology in the UK, there is a great deal of potential for the jobs market, both directly and indirectly. High-quality, skilled jobs would be supported by the development of the sector.

Here is the crux of the debate—why Clackmannanshire? Development of geothermal in the UK, as I have said, has been relatively limited so far, largely due to the availability of cheap North sea oil and gas. Geothermal energy is plentiful beneath the United Kingdom but, admittedly, it is not readily accessible, except in specific locations. One such location is Clackmannanshire. Abandoned coal mines in Clackmannanshire could become a source of energy, as the water that has poured into the mines since they closed has been warmed up by the rock surrounding it. It is hot enough to be used for a low-temperature heating system through a heat exchanger, with more potential for it to be used for energy production.

[Stephen Kerr (Stirling) (Con)]

My hon. Friend is speaking extremely well about this subject, and I bow to his knowledge in this area. On the notion of creating electricity from heat, would that extend to, for example, sewage? Would it be possible to create district heating systems in that way? Is it the same technology? Perhaps he can enlighten me.

[Luke Graham]

On district heating systems, yes. On sewage systems, I am not sure. That is something that we should explore, but when we look at the broader uses of the technology, certainly in energy and electricity production, as we have seen in other countries around the world, absolutely that can be done. There are exciting, direct uses of geothermal energy in countries such as Kenya, ranging from hydroponic farming to powering small communities. There are a number of exciting projects in operation, which is why it is important to run a pilot and secure investment so that we can realise the true potential of the technology.

While it is not often that Clackmannanshire has a competitive advantage over other local communities, we have a relatively unique geographical opportunity. However, there are more reasons to invest in Clackmannanshire. It suffers from high levels of deprivation, and a significantly high level of fuel poverty. Local authority surveys have identified the fact that one in three households in Clackmannanshire suffers from fuel poverty, rising to 49% among pensioners. Heat accounts for nearly half of energy consumption in Clacks and a third of its carbon emissions. Roughly 80% of that is consumed in homes and other buildings.

The local economy is vulnerable. It has a higher than average unemployment rate, the third lowest job density in Scotland, below average earnings, and of all the local authorities in Scotland, Clackmannanshire has the lowest rating for skilled qualifications. That is not to talk Clackmannanshire down. It may be the known as the wee county, but as I said in my maiden speech,

“it is not size but what you do with it that counts.”—[Official Report, 27 June 2017; Vol. 626, c. 524.]

I want to highlight some of the challenges in Clackmannanshire, but also give an idea of what a significant investment in the area would help to overcome. I want to look at the difference that such an investment could make in Clackmannanshire. It goes without saying that investment would bring valuable, skilled jobs to the area, and that is important, but it is more than that. Investment would help to develop spin-off businesses that would support the industry both directly and along the supply chain. We have already seen that. I was lucky at the weekend to be interviewed by the BBC, and local companies and local champions of geothermal have come forward in the past few days, keen to work with the Government and public and private sector bodies on a project not just in the county but in the wider region.

Developing geothermal energy in Clackmannanshire could see the area become renowned in the UK, not just as a leading low-carbon energy provider but for its energy innovation.