Presentation on theme: "Project update November 2011. Questions..... Who is Ham Hydro and where do they come from? What are exactly their objectives and what do they do? What."— Presentation transcript:
Project update November 2011
Questions..... Who is Ham Hydro and where do they come from? What are exactly their objectives and what do they do? What are the benefits for the community? How do they want to achieve this? How do the numbers look like? What is the overall timing? How can I get involved?
Ham Hydro CIC is… Created by members of Ham United Group (HUG) in early 2010, and the objectives of the company are to generate electricity from renewable sources and use the income generated to promote and develop low- carbon solutions in the local area, and support the local community We want to act locally. We believe renewable energy is part of the solution. We want to have ownership of the project. We want to see the benefits retained locally.
And these are the members of the team… James Heather Chas Warlow Paul Parker Gerhard Mueller Alex Beckett Mary Walsh Peter Rixon Jean Loveland
The Ham Hydro Journey 2006: members of HUG looked into the possibility of developing hydro power at Teddington Weir. Mid-2009: steering group formed and feasibility study commissioned. Summer 2009: feasibility study completed; discussions begin over structure of company and members’ commitment to project. April 2010: Ham Hydro CIC formed and developed a submission in response to call for expression of interest by Environment Agency (EA). Supporters of HH
The Ham Hydro Journey August 2010: Shortlisted, then selected as the developer by the EA. Obligation to work with the EA’s preferred civil engineering firm, Morrison Construction. January 2011: signed an exclusivity agreement with the EA – we are now exclusively permitted to develop the project. Summer/Autumn 2011: A variety of studies conducted and we are almost ready to submit application for planning permission. We won the exclusive rights to develop this
Concept is based on Archimedean Screws Archimedean Screws have been used for 1,000s of years but until recently their purpose has always been to raise water. By reverse engineering the screws and installing it on a river it is possible to utilise the energy generated by the flow of the river. This is amplified when sited at a weir as the drop in water level can also be exploited. Water passes from upstream of the installation into the screw channel. It then passes through the screw and the force from the flow turns the screw. The turning of the screw is used to generate clean electricity which can then be used or sold on.
Positioned on Teddington Side of the Weir Section of weir to be replaced
Power Generation depends on several factors Water flow m 3 /s and in 50% of time 35 m 3 /s and more Capacity 27 m 3 /s Head 0,3-2,2 m Tide Residual flow 5 m 3 /s Peak Power 450 kW and total annual production 1.9 million kW/h = 600 homes
Fish Friendliness There are currently 2 old fish passes which provide upstream migration. Planned provision of a much larger double gradient Larinier pass as recommended by the environment agency. Will facilitate greater upstream migration for all fish species recorded in Thames region. Archimedean screws are the preferred technology of the EA due to their minimal impact on downstream migration of fish. Multiple studies have concluded fish can pass unhindered through the screws and suffer minimal damage if hit.
Benefits of the project Community ownership The community has the say about what to do The community earns interest on their investment Environmental impact Clean energy production (CO2 neutral) equals 600 homes or 80% of the borough’s secondary schools 1,000 tons CO2 savings compared to conventional energy generation Community fund Re-invest in further renewable energy projects Support those who suffer from fuel poverty Any other ideas – the community will decide
Further benefits of the project Raise awareness and speed up roll out of low carbon projects in the area – more carbon savings Educational benefits: research/school projects… Sustainability Workshops, instil good practice, reduce energy wastage in schools Kingston University – undertaken graduate project to analyse flow data St. Mary’s University – plans to develop a sustainability display w. link to project Newland House School – building hydro model and learning about renewable energy Grey Court School – interested in projects Real time display of output and description of scheme
Licences & Planning Permission All hydropower schemes in the UK require licences issued by the EA. Ham Hydro has submitted an application for an impoundment licence. Must meet flood risk, fisheries and environmental criteria. We are currently in the process of submitting planning application at Richmond council Further assessments have been finalised (e.g. noise) and we are confident to submit in the coming weeks
Project & construction timeline May 2012*: work begins June 2012*: end of “noisy work” November 2012*: commissioning *subject to planning
Carbon Leapfrog Huge hurdles to overcome when you start out. Bridges gap between getting project up and running and being able to secure significant finance, bank loans etc. Independent project management advice. Design assistance from HLM Legal support Norton Rose. Accounting support Grant Thornton. HLM Architects
The legal framework The CIC (Community Interest Company) adds an ethical dimension to corporate law: Specified community benefit An asset lock, which is inexpensive and easy to set up Transparency of directors’ remuneration and use of assets Legal protection from demutualisation and windfall profits being paid to directors and members The IPS (Industry and Provident Society) is the next step: Typical Company Structure of Co-operatives Is able to issue shares to members
Financials Total Investment (net) Yearly Revenue (net) £m Current estimate, construction cost tbc. £k 11.5p/kWh index-linked for 20 years
November 2011 Short-term finance, pre- planning, high- risk, confirmed financial plan: Business Sponsorship (£10k and £30k+) Patrons (£500- 1,000 public) Loans (e.g. Pure Trust) January 2012 Long-term finance, post- planning, low risk: share issue (£1m+) will open after having achieved planning permission, currently scheduled for January April 2012 Complementary finance European loan funding via council Bank finance Finance options Source required funds in time to keep project running and ensure risk is kept at required level
What is the share issue? Will commence after having achieved planning permission You can invest from £500 up to £20,000. You’ll become a member of the IPS and will have equal voting rights on decisions at the annual general meeting. We are aiming for an interest rate of 5% which is better than an ISA but comes with a risk as it depends on profits. We will finalise our proposals and mitigate risks as far as we possibly can, by January/February Sign-up and we’ll keep you informed!
For how long can you invest? You can leave the funds in over 20 years and get regular interest, depending on the financial situation of the company. You won’t be able to withdraw within the first three years – so please consider this as a long-term investment – afterwards you can apply to withdraw the funds, and… subject to approval you can take your money out of the company. You can provide risk capital or other financial support from now on, please contact us
Community contact and Support Ham Hydro has run stalls at Richmond Fair and Ham Fair, as well as taking part in the HUG stall at Ham House Sow & Grow day Several public meetings have taken place in Ham and Teddington and further presentations Over 600 people have pledged their support for the project, either on sign-up sheets at these events or online via our energyshare page
Support us and tell your friends… Website: Facebook Page “This is a really imaginative, practical initiative that will provide environmental benefits with community gain... They have my full support.” Vince Cable MP “This is a hugely exciting local project, but it is also important nationally. Small-scale, decentralised clean energy is the future, and Ham is right at the cutting edge. Zac Goldsmith, MP