Working in partnership with Triodos Bank, Dart Renewables Ltd, a company set up to develop a hydro power scheme on the Totnes weir in Devon, has launched a £1.3 million bond issue.

Investors could earn 8% interest gross per year, for up to eight years. Dart Renewables’ ability to pay the interest on the bonds and to repay the bonds on the scheduled repayment dates or at all is dependent on the successful construction of the Totnes weir scheme.

The money raised will be used to finance the development of the 300 KW hydro power scheme on the river Dart. It is expected to generate 1,200,000 KWh of clean energy per year, enough to power around 280 homes Estimated based on most recent statistics from the Department of Energy and Climate Change.

 David Mann, Director of Dart Renewables commented:

“This is an excellent project that will generate a significant amount of renewable energy for Totnes and the local school. It will also provide wider benefits including installation of a fish pass built to Environment Agency best practice guidelines and a canoe launching facility”

 The Dart Renewables hydro power scheme will directly benefit the local community by making electricity available to two community organisations at a price lower than the prevailing rate.  It is expected that around two thirds of the electricity generated will be used to power a  local Totnes school  which serves around 1,700 students and Atmos Totnes, a community development involving the construction of around 60-70 social housing units and housing for older people.

Dan Hird, head of Triodos Bank Corporate Finance, said:

“The Totnes weir hydro power scheme is a fantastic example of a genuine community renewable energy project which has clear benefits to the local community and the environment. We are delighted to help investors and the local community to tap into this environmentally friendly, natural source of energy.”

Migratory salmon and sea trout will also benefit from the new hydro power scheme. A modern fish pass will be installed as part of the scheme – this is expected to significantly improve the migration of salmon and sea trout at Totnes weir and allow more fish to reach historic spawning grounds in the upper Dart catchment. The new fish pass and Archimedes turbines will allow the juveniles, known as  smolts, to pass the weir safely and return to the sea to complete their life cycle. Over time it is expected that this will increase the population of salmon and sea trout in the River Dart.

Dart Renewables intends to repay its investors in six annual equal instalments with the first instalment payable on 30 April 2018 and the final instalment payable on 30 April 2023. The company is offering investors interest of 8% gross per year on the capital outstanding.

The acquisition and development of the site in Totnes has been funded to date using £450,000 of cash invested in the company by the shareholders. Dart Renewables is now seeking to raise £1.3 million through the bond issue to fund the construction of the Totnes weir scheme. It is anticipated that the site will be completed by December 2015 and will begin generating electricity in January 2016.

Individuals are now being offered the chance to invest in a the scheme – with a minimum investment of £2,000 for local investors and £10,000 for those investors who do not live within 15 miles of Totnes.

Investment in the bonds is not covered by the Financial Services Compensation Scheme - Dart Renewables Ltd’s ability to pay the interest and repay the bonds is dependent on the success of its business model, in particular the construction of the hydro scheme at Totnes weir.

Dart Renewables Ltd bonds are unquoted securities with fixed repayment dates and although the bonds are transferable, investors should be aware that they may not be able to access their capital during the life of the bond.