Invest in Teddington & Ham Hydro

WE’VE JUST CLOSED OUR FUNDRAISING – AS OF 26 Nov 2015. Congratulation and welcome to all our new shareholders! – Don’t worry if you’ve missed out; we’ll be re-opening in early 2017 to raise the remaining funds. More details to be provided shortly.

Introduction to Investing

We raised £110,500 in April 2014 in order to develop the project. Having received planning permission and all required permits and licences, we have applied for feed-in tariff (FiT) pre-accreditation. This effectively fixes the level of index-linked revenue we receive for each unit of electricity that we generate. This accounts for around 70% of our forecast revenue and is therefore significant.
However, the construction and any material spending will not commence until certain open items are resolved. These are, amongst other things, the build costs, the eventual electricity sale price achieved and a legal challenge to Richmond Council regarding the process when it granted planning approval .
In the normal course of events the directors would not launch a share offer until these uncertainties had been resolved. However it has been announced that Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) tax reliefs are to be removed from community schemes on 30th November 2015. As a result we wanted to allow the community the opportunity to benefit from these tax reliefs before they disappear, by offering an initial £2million of shares to the community.

Why Invest?

This will be the first tidal run of the river scheme on the UK and also be the largest installation in the country of this type, once it is built and operational. You have the opportunity to make something happen that will be ground breaking and will have local, national and global implications.

The forecast revenue from the project (a mixture of Feed in Tariff (FIT) payments and sale of electricity) will, after associated costs, pay back the capital costs within 10-11 years. The lifetime of the asset is expected to be 40-50 year or more, so the Directors consider this to be a good, long term investment.

The directors expect that the qualifying members will have the opportunity to benefit from income and capital gains tax relief under the Enterprise Investment Scheme (EIS) rules of up to 30%.

Members will receive a fair financial return on their investment starting at a predicted 4% per year from year 2, and will grow in line with the operating profits of the Co-operative. Should generation be divergent from our forecasts, this interest rate may be higher or lower. In addition to this members may be eligible for tax relief depending on their tax circumstances.

10% of financial returns from the project will be used to invest in other community renewable energy and energy efficiency projects.

How to Invest

Every individual in the community will have the opportunity to invest in the project. The objective for the co-operative society is to remain in the hands of the community surrounding the project and so priority will be given to local members in the spirit of a community group.

The minimum subscription per applicant is £250. Applications in excess of the minimum amount may be made in multiples of £250. The maximum subscription is £100,000.

What do existing shareholder’s say?

“I have spent countless years enjoying the riverside with my young children. Sometimes the river appears powerful and other times very placid, but it never stops flowing. It’s energy is ceaseless and if it can be harnessed for the good of all in a way that’s sympathetic to the environment and the community then I am totally in favour. That’s why I invested and I believe that the  THH Board has done extremely well to have got this far against the sometimes strong tide of opposition.
The working example at Windsor is a model which should inspire everyone. Engineering in total harmony with the environment. The Environment Agency even think there is
potential for improvement in the river bed resulting from the scheme which would be beneficial to fish and wildlife.”

Mike Hobbs

“Why did I invest? It’s really very simple. A neighbour asked me.
Someone I knew personally, whose opinion I respected, introduced me. Let’s face it, there are lots of things one could invest in. Even within just renewable investment opportunities, there are heaps of choices. But a neighbour, someone with similar interests, someone I’d known for years, thought this was a good idea. It had to be worth listening to – even if just to be polite.
When I listened, I liked the idea of locally generated, low carbon, energy. Globally we need to decarbonise – radically reduce our CO2 emissions. There will be lots of approaches: nuclear, wind, tidal, solar, geothermal – and we will want and need most of them. Most of those decisions will be geopolitical and above my pay grade. I’d like to help with something I could both influence and touch.
I liked the idea of adding new technology to this historic locale. The palaces and parks are fantastic, of course. But we’re also home to the National Physical Laboratories and myriad technology companies – and the home of 60s rock music. I like the juxtaposition of old and new. We could do with building new legacy. I’d like more of that.
I think it could be a local attraction. It is unobtrusive and quiet. It will also be sexy – at least to energy geeks. Another interest catered to. So blame my neighbour for my investing. I certainly do.”

John Samuel

“I chose to invest in Ham Hydro and this project for simple reasons; if we wish to change how we harness energy for our own use as a species in the future,  doing so in a way that balances that with the future of the planet is critical. Harvesting naturally occurring energy in this way is an obvious “win” for humanity as a whole and will allow us to use other forms of more environmentally impactful energy sources sparingly and appropriately. This is a classic example of putting your money where your mouth is – so I did!
You can choose to do so too.”

Mike Tunstall

“I want to invent in locally-managed sustainable energy production which benefits the community.”
Simon Tompsett

“The hydro scheme will put Teddington on the map in supporting renewable energy. Hundreds of homes, and schools and businesses and the wider community will benefit from a sustainable electricity supply and reduced carbon emissions. The hydro will be an attraction for residents and visitors and businesses. Let’s all invest in the scheme, and with imagination and entrepreneurial flair, residents and businesses will gain from this local amenity.” 
Michael and Alison Jennings

“I am investing in this project because I believe that we should generate our own green energy where we can.  This is home grown and otherwise going to waste.
OK, this particular project is small as far as our energy needs are concerned, but just because you can do a small good thing doesn’t make it not worth while.  The turbines have a very long life and I like the idea that long after I am gone carbon will be saved and energy will be generated, still paying back for the flights I have taken.
So I am investing for my husband, whose idea it was originally at the first meeting he went to of Ham United Group, for myself, and for our grandchildren who will inherit this earth. I would have supported this scheme anyway, but because it also makes economic sense, i.e. gives a good financial return, I was able to invest more.  This is a good thing and I am very pleased to be part of it.”

Carole Hegedüs