The backers of a community hydro scheme in Aberdeen have launched a £600,000 fundraising after receiving “overwhelming demand” for its initial £500,000 share offer.
Aberdeen Community Hydro (Ace) has issued the terms of a bond offer, which will deliver a 4% return for investors over a 15 year term.
The initial share offer, which was designed to give investors a 7% return on their investment, attracted an average of around £20,000 per day from people all over the UK and closed 10 days ahead of its deadline of 16 September.
Sinclair Laing, founding director of Ace said: “We are completely overwhelmed by the support we’ve received in bringing the Donside Hydro to life. We were confident that the financial profile was attractive enough to bring investors to the table, but to have so easily met our target ten days ahead of schedule and to be in the position where we’re turning people away is nothing short of tremendous.
“It’s not over yet though, there’s still an opportunity to benefit financially and be part of the project through buying bonds, which offer a lower-risk and lower rate than the share offer but still a very healthy fixed-rate 4% return each year.
“On behalf of Ace and the community we serve, I’d like to thank everyone who has shown faith in the power of community by supporting our project. We will continue to punch above our weight to maximise the benefits the Donside Hydro can bring to the local community and the city of Aberdeen.”
The project is designed using the UK’s largest Archimedes screw. It was manufactured in the Netherlands by Landustrie Sneek, weighs 25 tonnes, is nine metres in length and 4.7 meters wide. It can produce 100kW and will draw a max of 10 cubic meters per second from the river. It was designed by ManPower Consulting.
On track to complete construction and begin generating electricity later this month, the project will create a sustainable income for the local community by selling clean, renewable electricity to the national grid. The project is expected to generate many thousands each year for a community fund and enough electricity to power the equivalent of around 130 homes annually.
