Albion Ventures invests £3.1m in third hydro project

January 21, 2014
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Albion Ventures (‘Albion’), one of the largest independent venture capital investors in the UK, has invested £3.1 million in partnership with Perth-based developer, Green Highland Renewables (‘GHR’), to fund the development of a single 1MW hydropower scheme on the Allt Gharagain near Achansheen, in the Scottish Highlands.

scotland-hydro-power-dam_33451_600x450The scheme will benefit from the Feed-in-Tariff regime and it is expected to generate its first electricity in Q4 2014. The installation is forecast to generate an average 3.1GWh of electricity per year, enough to power up to 850 households.
This investment is Albion’s tenth investment into renewable energy and the third investment into a hydroelectric scheme, thus underlining Albion’s strategy of expanding into this sector.

Christoph Ruedig, Investment Director at Albion Ventures said: “We are excited about partnering with Green Highland Renewables as we continue to invest in small-scale hydropower. GHR is one of the leading developers of small-scale hydroelectricity schemes in Scotland, having successfully developed many schemes over the last five years. Allt Gharaghain is the second investment in partnership with GHR after our £9.3m investment in Chonais Hydro in October 2013. We look forward to working with GHR on both schemes, as well as future schemes.

“This marks our third investment in hydropower and highlights Albion’s continued commitment to the renewables sector. Hydropower is the oldest renewable technology and has a strong track record of performance, which will provide attractive long-term returns for our shareholders.”

Ian Cartwright, Managing Director at Green Highland Renewables said: “After the successful start of our partnership with Albion on Chonais Hydro, we are very pleased to be partnering with the team again on Allt Gharaghain. The investment in this project further underlines our goal of becoming one of the leading owners and operators of small scale hydroelectric schemes in the UK. We look forward to developing Allt Gharaghain, Chonais, as well as future hydro projects, in partnership with Albion.”


For more information, contact Mr Christoph Ruedig: Investment Director at Albion Ventures LLP (Tel: +44 (0) 20 7601 1850), or Mr Patrick Evans or Mr David Sells at Citigate Dewe Rogerson (Tel: +44 (0) 20 7638 9571).

About Albion Ventures

Albion Ventures LLP is a venture capital investor specialising in VCTs with around £230 million under management. The business of Albion Ventures was formerly known as Close Ventures. It was acquired by its management in early 2009 from Close Brothers Group plc. To date its VCTs have paid out over £117 million in dividends to shareholders.

Albion Ventures looks to invest £1-10m in a wide range of growing businesses, from technology-oriented companies to asset-based businesses. Albion Ventures is authorised and regulated by the Financial Conduct Authority.

Albion Ventures recently launched Albion Community Power (ACP), a power generation company designed to offer investors relief from inheritance tax after just two years. ACP aims to be a major producer of community scale renewable energy by raising up to £100 million to power some 35,000 UK homes.

About Green Highland Renewables Limited

Green Highland Renewables Limited (GHR) was founded in 2007 and specialises in the development of small scale hydroelectric schemes. Since 2007, GHR has worked on a wide range of run of river schemes at every phase of the development process, from initial concept through to consent, construction and operation, as well as providing remedial works and scheme optimisation. At the end of last year, the company raised £3.3m of capital in a deal led by Scottish Equity Partners to develop its growing pipeline of hydro generation sites. The funding of the Chonais and Allt Gharaghain schemes demonstrates GHR’s progress in taking this valuable pipeline of schemes to construction.