VCT manager Albion Ventures has agreed to a £1.3m (€1.6m) investment in a 300KW hydroelectric scheme being developed by Dragon Hydro.

The investment will go towards constructing the project, which will be built on the Afon Cadair river in Gwynedd, Wales.

Output will be eligible for feed-in tariffs and it is anticipated the project will be generating power by the third quarter of 2013.

This marks Albion's seventh investment in the renewables sector.