Abundance’s corporate initiative for UK’s first geothermal project raises over GBP 1 million within a mere 48 hours of its launch

The exemplary success of the deployment of geothermal technology to generate electricity in Iceland and Italy may have, in all likelihood, goaded the UK government to tap the geothermal potential of the country to generate power. Financially endorsed by the Local Authority and the European Union grants, the construction of UK’s first commercial geothermal power plant is now underway, near Redruth in Cornwall. While this head-turning scoop had already made global headlines, what has catapulted it back to the front page is the involvement of Abundance in the project. As per reports, this ground-breaking project is likely to be funded by Abundance to generate geothermal-based electricity in the United Kingdom.

Abundance Investment is basically a peer-to-peer finance platform that is renowned for pouring in capital for projects that contribute toward environmental safety. Keeping in line with its principal mission, Abundance Investment has now launched the United Downs Geothermal bond in a bid to raise around GBP 5 million for the construction of UK’s first geothermal plant. As per the latest news, the bond has successfully raised more than GBP 1.6 million within a couple of days since the launch date.

For the record, this geothermal project has already been awarded a funding of GBP 2.4 million from the Cornwall County Council and a grant amounting to approximately GBP 10.6 million from the European Regional Development Fund. The project will span for 18 months, in the duration of which an injection well and a production well is projected to be drilled and tested prior to the construction of the power plant. As per experts, the project is likely to account for an upsurge in the regional geothermal power market. Reports cite that the plant has been planned to encompass a capacity of 3 MW and will, in all probability, generate sufficient electricity for at least 5,500 households on an annual basis.

According to the bond, Abundance will pay 12% returns to the investors post the 18-month project culmination term. Reports also cite that the bond is eligible to be held in Innovative Finance ISA, Abundance’s tax-free scheme.

Abundance’s co-founder apparently had a word to say regarding the renewable energy wave across the globe. He has been quoted stating that most of the investors are on tenterhooks to commission funds for the deployment of renewable energy. All in all, experts affirm that investors are eager to give the green signal for projects that contribute toward environmental protection and maintenance.

For the record, the United Downs Geothermal bond is one of the many green energy projects that has been funded by Abundance in recent times. For instance, the finance platform had recently launched the Green Deal bond for a valuation of GBP 4.2 million, while the last week witnessed the complete subscription of the Atlantis Tidal Power Bond in less than a month post its launch.