While tidal energy has had a difficult time being deployed, the Orkney Islands, an archipelago in the Northern Isles of Scotland, is taking a bold step. Rupert Jones explains in The Guardian that there is a new crowdfunding scheme launched by ethical investment platform Abundance.
£7m crowdfunding bid for Orkney tidal energy turbine launches
A “green” investment that pays 12% interest and involves putting your money into a major tidal energy project was launched this week.
But that high rate indicates this is a great deal riskier than putting your money into a high street savings account, with no compensation if things go wrong. So this is not one for the risk-averse.
Launched by ethical investment platform Abundance, the scheme involves a company called Orbital Marine Power that is looking to raise £7m to fund construction of the UK’s first floating tidal stream turbine to go into commercial production.
Those who invest would be buying debentures, which are like IOUs issued by companies. The investment has a 30-month term and offers 12% interest a year before tax, which is rolled up and paid at maturity in June 2021. The minimum investment is £5.
The offer document says that if someone invested £1,000, they would at the end of the term receive £338.02 interest, plus their original capital back.
But debentures are not covered by the Financial Services Compensation Scheme or the Financial Ombudsman Service, and the document states that “there is no guarantee you will receive any interest, or that your capital will be returned”.