WORK could start on the Sandford Hydro scheme next month.

Low Carbon Hub said it is preparing to begin the project, which could power more than 400 homes.

It has raised £1.2m to fund the project and Oxford City Council last week approved a £100,000 loan to pay for a fish pass.

The group is hoping it will now secure a final loan of £2m from the Charity Bank and meet its total £3.2m costs.

In a statement it said: "Having prepared the site in the spring, our contractors are now ready to start works on site and put in place the temporary infrastructure needed during the construction phase.

"We are keen to share our plans for the works and how we're trying to minimize the impact for both villages."

Staff at the hub yesterday confirmed work could begin in September if the Charity Bank loan is approved in the coming weeks.

Over its lifetime of 40 years, the hydro lock scheme is expected to generate £2m to fund other community energy projects.

The main project itself will consist of two Archimedes screws installed in the River Thames at Sandford Weir that would be turned by the water to generate electricity.

The hub raised £800,000 of the cash through a community share offer and £400,000 from its own finances.

The Sandford Hydro scheme would be the second it was built, after a screw at Osney Lock costing £650,000 was completed last year.

The first project of its kind on the Thames, it was financed by some 200 investors who are due to be paid back within the next 20 years.