Abundance launches fundraising for UK’s first geothermal plant
ABUNDANCE has launched a new campaign to fund the construction of the UK’s first commercial geothermal electricity power station, with returns of 12 per cent for investors.
The United Downs Geothermal Bond has an 18-month maturity, and the interest will be paid in full at the end of the term. The investment is eligible to be held in Abundance’s Innovative Finance ISA.
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The platform, which has a long-standing commitment to renewable energy investments, is aiming to raise up to £5m to aid with the construction of the plant, which will be based near Redruth in Cornwall. This will supplement the plant’s existing funding of £10.6m from the European Regional Development Fund and £2.4m from Cornwall County Council.
“Our customers have demonstrated a strong appetite for investing in the next wave of renewable technologies which offer a win for the planet and a win for their financial aspirations too, so we are very pleased to offer this chance to help build the UK’s first geothermal power station in Cornwall,” said Abundance co-founder and managing director Bruce Davis.
“While onshore wind and solar will always be important as established renewable energy generators, the sector is moving beyond that now to the next generation of technologies like geothermal and tidal, with Abundance investors backing them through their ISAs.”
This is just the latest in a series of green energy projects which have been promoted by Abundance. Last week, the Atlantis Tidal Power Bond was fully subscribed, less than a month after its launch, while the £4.2m Green Deal Bond was more than 87 per cent funded at the time of writing.
The geothermal project has already seen substantial interest from investors, with more than £1.6m being raised to date. Work is already underway at the Cornwall site, and the first stage involves drilling a well down to 2.5km followed by a second deeper well of 4.5km to create a geothermal circuit. The geothermal plant will have a target capacity of 3MW of constant power, enough to supply 5,500 typical homes each year.
“The geothermal resource beneath our feet is extensive, and, if properly managed, inexhaustible,” said Ryan Law, managing director of Geothermal Engineering. “The granite rocks of Cornwall have the highest heat flow in the UK and are the best place for the development of geothermal power.
“The United Downs project is at the cutting edge of geothermal technology and we want to give the local community the chance to be involved in this project.
“This is why we are launching an offer of debentures through Abundance to allow people to invest directly, from a minimum of just £5.”