Multi-billion pound plan to power UK homes with Icelandic volcanoes within 10 years

British homes could soon be powered by volcanoes in Iceland, as plans to build 750 miles of cabling beneath the Norwegian Sea are due to be unveiled today.

Prime Minister David Cameron is expected to announce that the UK and Iceland are looking into setting up a multi-billion electricity pipeline between the two countries to pump renewable energy into Britain.

This 'interconnector' would mean hydro- and geothermal-generated electricity, which currently fuels around 95 per cent of Iceland's energy use, could be exported directly to the UK.

A newly-created UK-Iceland Energy Task Force has been set up to examine the feasibility of the scheme, and will report back within six months.

If it goes ahead, officials said the project would take between seven and 10 years to construct, and would provide a long-term source of renewable energy and securing Britain's future energy needs.

Mr Cameron held talks with Icelandic Prime Minister Sigmundur David Gunnlaugsson as he visited the country for the Northern Future Forum.

He is the first British prime minister to visit Reykjavik since 1941, when Winston Churchill made the trip.