Geothermal power from Icelandic volcanoes could supply electricity to the UK under an agreement signed today.

The two countries pledged to explore the possibility of developing electricity interconnection between Iceland and the UK. Under a memorandum of understanding, they also agreed to work together on renewable energy projects in developing countries, with a special focus on East Africa.

The deal was signed in Iceland by UK energy minister Charles Hendry and his Icelandic counterpart Oddny Haroardottir.

Hendry said: “Today’s agreement will help pave the way for a closer relationship with Iceland, which I hope can yield significant benefits for the UK, including the development of geothermal power, greater use of interconnectors to transport energy under the sea, and developing oil and gas resources. This sort of approach can both enhance our energy security and deliver low carbon electricity in an affordable way.”