EXETER could be in line to reap the economic benefits from the exploitation of a previously untapped underground energy source.

The Government says harnessing geo-thermal power in the area would not only help towards meeting the nation's energy needs, but also create thousands of jobs in the region building and running new power plants.

Funding totalling £6 million has now been announced to help companies carry out the exploratory work needed to find suitable sites for the technology that exploits geo-thermal energy.

Granite found under Devon has previously been said to have the "most promising" geological formation for "hot rocks" energy production in Europe.

This is where water is pumped deep into the rock, and comes back to the surface hot enough to generate power.

Alongside wind and wave energy, it would put Devon at the cutting edge of 'green' power generation.

Lord Teverson, a former South West Euro-MP, who last year led a delegation of energy companies to Whitehall to discuss exploiting the renewable energy source welcomed the exploration funding. He had previously expressed concern that geothermal power had not "featured on the radar" of the Government despite its ambitious targets for 'green' energy generation.

Projects in England, Scotland and Wales are eligible to bid to the fund.

There will be £4 million available this year and £2 million in the next financial year.