GT Energy has started work on the next phase of its geothermal scheme, which will provide a secure supply of cheaper, renewable heat to homes and businesses in Manchester.
Detailed geological evaluations will be undertaken by GT Energy to produce thermal models of the Devonshire Street site in the Ardwick area, enabling the firm to complete final designs from which to extract heat.
GT Energy is investing £450,000 in this new phase of the project. The investment was made possible by the completion of the latest round of corporate fundraising through which GT Energy raised more than £1.7m from new and existing shareholders.
The funding round was led by the Low Carbon Innovation Fund (LCIF), a venture capital fund managed by Turquoise on behalf of the Adapt Low Carbon Group at the University of East Anglia and supported by the European Regional Development Fund (ERDF).
“The successful completion of this funding round maintains the good progress of the Devonshire Street geothermal heat project. We will be working with our contractor Erdwerk, which is highly experienced in deep geothermal development in Germany. From here, we expect to move from planning permission to a position where we will be ready to break ground on the site in spring 2015,” said Padraig Hanly, Managing Director of GT Energy.
“LCIF is delighted to be working with the GT Energy team who have secured a valuable first mover advantage in geothermal energy since starting the business in 2007, said Francis Wright, Managing Director at Turquoise, which acts as fund manager to LCIF.
GT Energy aims to start drilling in spring 2015 and generating energy in spring 2016 from the geothermal resources located approximately two miles below Manchester in the Cheshire Basin. A network of pipes will take the heat from deep underground to city centre homes and businesses. Not only will residents and firms benefit from cheaper energy, but the overall project will create more than 100 new jobs in the city. Once complete, the Devonshire Street site will be the largest commercial development of geothermal heating in the UK.
Keep abreast with Devonshire Street by visiting the website www.devonshirestreet-gt.co.uk
About the Low Carbon Innovation Fund
The Low Carbon Innovation Fund (LCIF) is a University of East Anglia fund managed by Turquoise International. Turquoise International is a merchant bank specialising in energy and the environment. Established in 2002, Turquoise offers in-depth industry knowledge and extensive capital raising, transaction advisory, and investment management expertise and track record.LCIF is funded by the European Regional Development Fund (ERDF) East of England Competitiveness Programme, which is investing £100m towards low carbon economic growth until 2013. LCIF is part of the governments’ Solutions for Business portfolio of business support products. It is a venture capital fund making equity investments alongside other investors or funds. Investments can be made in eligible small to medium sized businesses (SMEs) in the East of England. Further details can be found at: www.lowcarbonfund.co.uk. The ERDF is a seven-year investment programme part financed by the European Union. Its objective is ‘towards low carbon economic growth’ in the East of England and €110.9 million has been allocated to the region.