The government is backing seven heat network projects in the UK with £91 million.
One of these is a geothermal energy facility in Cornwall, which will use heat from underground to power 4,000 homes.
The Langarth Deep Geothermal Heat Network will receive £22 million of the funding – and is set to lower the cost and carbon footprint of local energy.
Heat will be extracted from 5,200 metres below the Earth’s surface through drilling and allow local businesses and homes to stop using gas boilers.
Other heat network projects that have secured funding are based in Yorkshire, East London, Huddersfield, Reading, Rotherham and Bradford.
Lord Callanan, Minister for Energy Efficiency and Green Finance, said: “These innovative projects will not only benefit the communities they serve – by reducing emissions and providing low-cost heating that helps to drive down energy bills – but also support the nation’s push for greater energy security and independence.
“They form part of our energy revolution – creating hundreds of new jobs for our ever-expanding green economy.”