SHAREHOLDERS who invested in a £1.25m hydro-electric scheme in Abingdon can expect to get most of their money back after the scheme was abandoned, one of its directors has pledged.

The project for the plant at Abingdon weir got planning permission in 2013 and would have featured two Archimedes screws to generate up to 100kW of electricity – enough for 120 homes.

But the project, backed by a share issue which raised £870,000, was abandoned last Monday when quotes from building contractors were deemed to be too high.

Abingdon Hydro secretary Richard Riggs, 71, said about 420 people and organisations had invested.

Mr Riggs, a retired engineer of Abingdon, added: “The minimum investment was £500 – 500 shares costing £1 each – but the average investment per shareholder was £2,000.

“People can expect to get back 85 per cent of their investment and losses can be set against capital gains tax.

“But first we must reclaim VAT and pay all the bills. I don’t think people will get their money back this side of Christmas.”

Mr Riggs said a meeting for shareholders would be held at a venue in the town before the end of the month.

Last month directors warned they were up against the clock as fresh plans for a larger generator house had to be submitted.

They said that if the scheme was not generating by September 2016 the scheme would lose its feed-in tariff – a government initiative which offers compensation for renewable energy schemes.

The project proved controversial and after it was unveiled a protest group was formed called Protect Abingdon Weir.

Spokesman Mike Gould, 66, an author of Jackman Close, said opponents of the scheme were upset when trees were felled in 2014 to make way for the plant.

He added: “I would now like to see the site restored to how it was before and trees replanted. About three large trees were cut down.”

He claimed the Abingdon Hydro team had approached the project in an “amateurish manner” and “failed to do homework properly”.

Mr Gould added: “It shouldn’t have taken them so long to realise that the scheme was not going to be a good proposition. Similar projects have cost £2.5m so £1.2m was nowhere near enough.”

Mr Gould received anonymous hate mail after forming his protest group but added: “I feel sorry for investors who could lose money.

“I hope this is the end of plans for a hydro-plant on the river but we will remain vigilant to make sure there are no other proposals.

“I don’t want any hard feelings over this. The directors need to keep shareholders informed.”

Mr Riggs told shareholders that compared to other challenges the project had faced, Mr Gould’s campaign had been a “fleabite”.

When told of Mr Gould’s claim that the scheme had been handled in an “amateurish” manner, Mr Riggs said: “It’s true we started off as beginners. We were a community group.

“If we had been more skilled at completing all the various stages we would have got there faster and the plant would be under construction by now.”