The government has set up a fund of £1 million to support exploratory work by companies looking to tap underground energy sources.

The government has set up a fund of £1 million to support exploratory work by companies looking to tap underground energy sources.

The Deep Geothermal Energy Fund is open to applications from companies seeking to carry out the exploratory work needed to find viable sites for the technology.

Deep geothermal energy uses the natural heat found underground to produce renewable electricity and heat at the surface.

Chris Huhne, secretary of state for energy and climate change, says, ‘Geothermal power from the South West alone could provide up to two per cent of the UK’s electricity needs.’

Adds Huhne, ‘Offering this funding will give UK-based innovators a chance to get their projects off the ground and into our energy mix.’

The closing date for bids is 29 October 2010.