A community hydro-electric scheme is to go ahead after it raised £125,000 in three months from a share issue which gave people the chance to back renewable energy.

Esk Valley Community Energy Group aims to establish a small-scale hydro-electric turbine known as an Archimedes' screw on the River Esk in Ruswarp, near Whitby, North Yorkshire.

When the scheme is completed in summer 2012, the ''fish-friendly'' turbine will generate around 200,000 kWh of sustainable energy a year, saving an estimated 3,000 tonnes of carbon emissions in its lifetime.

The group behind the project has been backed by the Co-operative Enterprise Hub, which aims to provide advice and consultancy to new and expanding member-owned enterprises across the UK.

Colin Mather, a retired civil engineer and chairman of the Esk Valley Community Energy Group, said: ''One of our sayings is 'think global, act local' and our scheme offers people a chance to do their bit to protect the environment while generating a new source of sustainable green energy.

''We are delighted with the response to the share issue and although we know that there is still a lot of hard work ahead, it illustrates that by working together, co-operating, amazing things can be achieved.''

The community share issue is still open, with shares available from as little as £250 up to a maximum of £20,000, to allow the group to reduce loans.