A deep geothermal district heating network will be built after the Scottish Government allocated £1.8million of grant funding to Ross Developments & Renewables.
The innovative technology will generate sustainable heat for the redevelopment of the Johnnie Walker bottling plant in Kilmarnock in west Scotland.
A deep geothermal single well, developed by Geon Energy Ltd - a joint venture between Geothermal Engineering Ltd and Arup - will deliver heat to the network.
The well will be two kilometres deep and water heated by the surrounding rock will be drawn up using a small pump and the heat will then be transferred to water in the network.
Arup Director Dr Matthew Free said: “It is fantastic that the Scottish Government is giving such strong support to the development of sustainable low carbon energy projects in Scotland.
“There is a substantial geothermal resource beneath our feet and we look forward to developing the first deep geothermal system in Scotland.”
The grant has been provided by the Scottish Government Low Carbon Infrastructure Transition Programme (LCITP).
The Halo Kilmarnock project will include key worker and social rental housing, live work units, an urban park, water based leisure facility and an innovation and enterprise centre.
The deep geothermal district network will supply heat for the whole development including housing, which could reduce fuel poverty by providing heat at below market price.
Funding for the development overall has been received from the Scottish Government, UK Government, East Ayrshire Council, Diageo and private sector investors.