HL Deb 26 February 1991 vol 526 cc859-60

3 p.m.

Lord Campbell of Croy asked Her Majesty's Government:

Whether they are pursuing research, either on a national or a Community basis, into harnessing energy from geothermal sources in subterranean rocks.

Lord Cavendish of Furness

My Lords, yes. When the current phase of research on hot dry rock technology is completed in September 1991 the next phase of work will concentrate on collaboration with a European programme now under way involving France, Germany and the European Commission.

This work is expected to be carried out by the Camborne School of Mines and associates, and RTZ Consultants Limited, and government funding of £3.3 million will be provided over the period 1st October 1991 to 31st March 1994.

Lord Campbell of Croy

My Lords, I thank my noble friend for that informative Answer. As it is a clean source of energy and kind to the environment, will the Government ensure that the expertise gained from the pilot project in Cornwall is not discarded or lost?

Lord Cavendish of Furness

My Lords, we are ensuring that there will be technology transfer even though to date the findings are not giving ground for encouragement.

The Earl of Lauderdale

My Lords, will my noble friend say what sites in Britain have been explored for this purpose?

Lord Cavendish of Furness

My Lords, only one site is currently being explored. It is in Cornwall.

Baroness Nicol

My Lords, I am sorry that I missed part of the question from the noble Earl. Is it known how many sites in Great Britain are suitable for this technology?

Lord Cavendish of Furness

My Lords, apart from Cornwall it is thought that there could be one area in the North-East.

Lord Peston

My Lords, we are glad that the work is at least continuing. Will the noble Lord enlighten us a little further? How well is the work going? Are there any signs yet that energy from this source is likely to be an economic prospect in the foreseeable future?

Lord Cavendish of Furness

My Lords, the review carried out by the Department of Energy in 1990 concluded that very substantial uncertainties remain about the practicability of extracting useful energy from hot dry rocks in the UK.

Perhaps I may give an example. The study carried out by the department concluded that an early commercial hot dry rock station could cost 19p per kilowatt hour. That compares with the cost of a combined cycle gas turbine of between 2.3p and 2.8p per kilowatt hour, assuming a discount rate of 10 per cent.

Lord Tordoff

My Lords, in his reply to the noble Baroness, Lady Nicol, the noble Lord referred to the North-East. Does he mean somewhere near East Anglia or Wick? To the north-east of where is he referring?

Lord Cavendish of Furness

My Lords, I refer to North-East England.

Lord Peston

My Lords, will the noble Lord clarify his answer to me? I believe he stated that for the moment the source is not economic but that it is the Government's view that we must continue with research in the hope that one day this will prove to be an efficient source of energy. Am I right in saying that that is the Government's position?

Lord Cavendish of Furness

My Lords, yes. There are no prospects of it being economic in the short term. We are continuing with research until we can collaborate with Europe on a wider scale.

Lord Campbell of Croy

My Lords, will my noble friend bear in mind that geothermal sources, known as hot rocks, may well be needed at some time in the future as costs change and as objections and difficulties with other sources increase?

Lord Cavendish of Furness

My Lords, my noble friend makes a valuable point. That is borne in mind by the department in its approach to the research.

The Earl of Lauderdale

My Lords, has experience in New Zealand and Iceland been studied in that regard?

Lord Cavendish of Furness

My Lords, I am told that so far this technology has not worked anywhere in the world.