Capital investment group Albion Ventures LLP is entering the hydropower industry with an investment of almost US$2 million in a new Dragon Hydro Limited scheme.

The money will help Dragon Hydro develop a 300 kW hydropower plant on the Afon Cadair River in Wales' Gwynedd County.

The project will benefit from the United Kingdom's feed-in tarrif (FiT) plan and reflects Albion's history of investing in green technologies.

"This investment highlights Albion's continued commitment to the renewables sector," says Albion representative Michael Kaplan. "Hydropower is the oldest renewable technology and we are very pleased that the government continues to support small-scale hydro through feed-in tariffs."

Albion says the project is expected to be complete by Q3 2013.