Albion has invested £1.3 million in partnership with Welsh based developer, Dragon Hydro Limited, to fund the development of a single 300kW hydropower scheme on the Afon Cadair river in the county of Gwynedd in Wales.
The site in Wales will benefit from the Feed-in-Tariff regime and is expecting to generate its first electricity in Q3 2013. The installation is forecast to generate an average 1,300MWh of electricity per year, enough to power up to 300 households.
This investment is Albion’s seventh investment into renewable energy and continues Albion’s strategy of expanding into this sector. Dragon Hydro will provide funds managed by Albion with an attractive long-term yield as well as the potential for capital growth.
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 Company demonstrates a very high standard of engineering excellence and commitment, having spent a considerable effort on planning and obtaining all required consents.
“This 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 continues to support small-scale hydro through Feed-in-Tariffs.”
Jonathan Bensted, Director at Dragon Hydro Limited, 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 continued growth.”
Gary Markham, partner in Cader Idris Farms and Estate which owns the land said: "This project fits well with our existing organic farming business; hydro power being a natural low impact activity in this fragile landscape. We are delighted to have both Albion and Dragon Hydro to develop the project, both have demonstrated considerable professionalism whilst being sympathetic to local farming businesses"
MorbenHydro, a specialised hydro engineering firm is acting as consultant to the project.