Neighbourhood Stories
Settle Hydro Ltd
Settle Hydro Ltd is a new start social enterprise based in North Yorkshire. The organisation is developing a small scale hydro-electric power scheme on a weir on the River Ribble in Settle. They will generate revenue by selling ‘green’ hydro-electricity to Energy companies.
Settle Hydro Ltd was set up to allow the community to own the hydro scheme themselves. Local people were given the opportunity to purchase shares to a value of £100,000. This innovative ownership structure means that any surplus revenue will be passed back to the local community through its twin aims of regenerating the local economy and promoting the environmental sustainability of Settle District.
Settle Hydro approached the Key Fund for support towards the £300,000 needed to establish their enterprise. The monies are to be used for equipment and construction costs, project management fees, development costs and a donation to the developing world hydro scheme. In December 2008, Key Fund Yorkshire agreed a potential £70,000 finance package with Settle Hydro; £10,000 of this would be delivered as a grant and £20,000 as a loan. The remaining £40,000 would be used as a flexible underwriting facility for the community share issue, giving the organisation the ability to trade its own shares.
Since agreeing the package with the Key Fund, Settle Hydro received enormous interest in their community share issue and has successfully raised the full £40,000 needed. The Key Fund is still providing the group with the £30,000 as previously agreed.
Once the scheme is up and running enough electricity will be generated to power 50 homes.
