Ham HydroProject 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, andthe 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 Journey2006: 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 JourneyAugust 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 ScrewsArchimedean 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

0-300 m3/s and in 50% of

time 35 m3/s

and more

Capacity 27 m3/s

Head 0,3-2,2

mTide

Residual flow 5 m3/s

Peak Power 450 kW and total annual

production1.9

million kW/h

=

600

home

s

Fish FriendlinessThere 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 projectCommunity ownership

The community has the say about what to doThe community earns interest on their investment

Environmental impactClean energy production (CO2 neutral) equals 600

homes or 80% of the borough’s secondary schools1,000 tons CO2 savings compared to conventional

energy generationCommunity fund

Re-invest in further renewable energy projectsSupport those who suffer from fuel povertyAny other ideas – the community will decide

Further benefits of the projectRaise 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 schoolsKingston University – undertaken

graduate project to analyse flow dataSt. Mary’s University – plans to develop

a sustainability display w. link to projectNewland 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 councilFurther assessments have been finalised (e.g.

noise) and we are confident to submit in the coming weeks

Project & construction timeline

May 2012*: work beginsJune 2012*: end of “noisy work”November 2012*: commissioning*subject to planning

Carbon LeapfrogHuge 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 HLMLegal support Norton Rose. Accounting support Grant

Thornton.

HLM Architects

The legal frameworkThe CIC (Community Interest Company) adds an ethical dimension to corporate law:Specified community benefitAn asset lock, which is inexpensive and easy to set upTransparency of directors’ remuneration and use of

assetsLegal protection from demutualisation and windfall

profits being paid to directors and membersThe IPS (Industry and Provident Society) is the next step:Typical Company Structure of Co-operativesIs able to issue shares to members

FinancialsTotal Investment (net) Yearly Revenue (net)

2011/120

0.5

1

1.5

2

2.5

3

Investment

20140

50

100

150

200

250

300

350

SaleFIT

4.5p/kWh current whole-

sale price

£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 optionsSource 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

permissionYou 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 2012.

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

invest@hamhydro.org.uk

Community contact and SupportHam 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: www.hamhydro.orgEmail: invest@hamhydro.org.uk Facebook PageTwitter: @hamhydro

“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 th

e cutting

edge. Zac Goldsmith, MP