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Ethical investment with a target 4% return

PRESS RELEASE

18 January 2012

Ethical investment with a target 4% return

If you’re looking for an ethical investment and want to know exactly what your money is being spent on, then Saddleworth Community Hydro could be the solution.

Saddleworth will be England’s first ‘high head’ community-owned hydro, using head from the 90ft dam at the Dove Stone reservoir. A 51kW turbine will be installed generating 170,000kWh/year electricity, enough to power 45 homes.  In addition to a grant by Defra and the European Agricultural fund for Rural Development, the recently launched share offer for £120K will cover the outstanding cost of the project.

Directors have a target of 4% interest on shareholdings from year two. There’s a minimum shareholding of £250 and a maximum of £20,000.  EIS (Enterprise Investment Scheme) status has been granted, so shareholders with more than £500 worth of shares can apply for EIS tax relief at 30%.  For example, anyone buying £1000 worth of shares will in fact be spending only £700. Individuals hoping to be eligible for EIS tax relief must invest a minimum of £500 and keep the shares within the company for a minimum of 3 years.

Saddleworth Hydro is one of a growing number of Industrial and Provident Societies for the benefit of the community, where local people have come together and, through a community share offer, have been able to fund a project which will make a big difference locally.  In the case of Saddleworth Hydro, the electricity generated will be sold to the national grid and, as well as providing a modest return for investors, surplus monies will be used to fund local environmental projects.

Saddleworth Hydro Director Bill Edwards explains: “It’s not just a flash in the pan. We’re expecting to be able to generate renewable energy for the next 40 years or more, which means we’ll be providing a sustainable pot of funding which will be available for community projects. I think it’s great that we’ll be helping to reduce CO2 emissions by generating renewable energy, we’ll be providing a return on investment for those who’ve bought shares and we’ll be in a position to provide funding for local environmental schemes.”

Saddleworth Hydro will be run on a one-member, one-vote basis. For further information contact steve.welsh@h2ope or download a share prospectus at www.h2ope.org.uk.