UK geothermal project seeks to raise $6.2m bond financing via crowdfunding platform
The United Downs Deep Geothermal Project in Cornwall, England is seeking to raise up to $6.2 million in bond financing through Abundance, a renewable energy focused crowdfunding platform.
The pioneering geothermal project in Cornwall, England, which we have been reporting on before is now seeking additional funding via the crowdfunding platform Abundance.
Abundance, is a platform to allow “ordinary people to invest their money in real projects that make a real difference to society and the environment”, so the website.
The United Downs Deep Project is estimated to need an investment of around GBP 18 million or around $22.1 million. The project has already secured GBP 13 million ($16 million) in public funding, of which GBP 10.6 million ($13m) is from the European Regional Development Fund and GBP 2.4 million ($3m) from the Cornwall county council, so the Guardian.
But as Ryan Law, the Managing Director of Geothermal Engineering Ltd, the UK-based developer of the project said, funding is difficult to come by due to the high risk of this kind of project.
The project on the Abundance platform can be found here.
Through crowdfunding, the project now aims to raise an additional GBP 5 million ($6.2 million) through the Abundance platform. So far the this specific crowdfunding platform has raised GBP 50 million for renewable energy projects since the website went live 5 years ago.
Investing via Abundance for this project will provide returns of 12% on a bond with an 18-month term. If the project does not go ahead, investors will receive their capital back.
As we reported before, it is expected that drilling with start in the first quarter of 2018 with two wells to be drilled. One about 2,500 meters deep, the other one at 4,500 meters. With these two wells it is expected to create a circuit with cold water pumped down the shorter well, and heated up water to be pumped up from the deeper well.
While the initial plant is expected to have a capacity of 1-3 MW, it could provide a pilot project for more to come in the region.
Source: The Guardian
DISCLAIMER: This is not an advertisement or investment advise, the article and link to the crowdfunding platform is provided on an informational basis only. Any investment is at your own risk.