Abundance Investment has issued a bond to raise up to £5m in funding to build one of the UK’s first geothermal energy plants in Cornwall.
The United Downs Geothermal bond has already raised £1m for the project, which will be located near Redruth in Cornwall.
The bond pays a 12% annual equivalent rate and has an 18-month term.
Interest will be paid in full at the end of the term, and it is eligible to be held in an Abundance Innovative Finance ISA so returns are tax-free, Abundance said.
The 3MW geo project is being devleoped by Geothermal Engineering and has already been awarded a £10.6m grant from the European Regional Development Fund and £2.4m of public funding from Cornwall County Council.
The first stage of the project will involve drilling a well down to 2.5km followed by a second deeper well of 4.5km to create a geothermal circuit to power the electricity generation plant built on the surface.
Abundance co-founder and managing director Bruce Davis said: “Our customers have demonstrated a strong appetite for investing in the next wave of renewable technologies which offer a win for the planet and a win for their financial aspirations too.”
Geothermal Engineering managing director Ryan Law said: “The geothermal resource beneath our feet is extensive and if properly managed inexhaustible.
“The granite rocks of Cornwall have the highest heat flow in the UK and are the best place for the development of geothermal power.”
Image: Geothermal Engineering
