Albion Ventures has announced the investment of £1.3m in partnership with Wales-based developers Dragon Hydro to fund a 300kW hydropower scheme in Gwynedd.
The site on the Afon Cadair river is expected to begin producing power from Q3 in 2013 and is expected to generate 1,300MWh a year – enough to power up to 300 households.
Michael Kaplan, partner at Albion, said: “We are extremely pleased to make our first hydro investment with Dragon Hydro as we continue to diversify our holdings across a range of renewable energy technologies.
“The investment highlights Albion’s continued commitment to the renewables sector. The investment will provide attractive long-term returns for our shareholders. Hydropower is the oldest renewable technology and we are very pleased that the government conitnues to support small-scale hydro through Feed-in Tariffs.”
Jonathan Bensted, director at Dragon Hydro, said: “Dragon Hydro welcomes Albion as a valued investor and business adviser. With its solid background and track record in supporting businesses in the renewables sector, we are pleased to be working with them. The investment will support the company’s growth.”