Good Energy Group Plc, a British renewable energy supplier, bought a £500,000 stake in a tidal lagoon project in Swansea Bay, Wales.
The developer Tidal Lagoon Power Ltd., behind a £850m tidal lagoon in Swansea Bay said the project has been boosted after receiving a significant equity investment from Good Energy.
The energy firm has been given an option to purchase 10% of the projected annual 495GWh forecasted power output from project operators Tidal Lagoon Swansea Bay (TLSB.
Good Energy founder and chief executive, Juliet Davenport, said: “This project will enable us to diversify our business by adding tidal energy to our existing portfolio of renewable energy generation.
“This forms part of our long-term strategy of investing in UK renewable generation assets, securing renewable electricity for our rapidly growing customer base and playing a part in helping the UK secure its energy future.”
The Swansea Bay project is estimated to generate sufficient electricity to power more than 155,000 homes in the Swansea area, and correspondingly save the equivalent of 236,000 tonnes in carbon dioxide emissions each year. The project will ensure the creation of hundreds of jobs in energy engineering.
It is estimated that the tidal lagoon will run for a period of 120 years with limited decommissioning costs.
Company and secretary and director of TLSB, Patrick Carter, said: “This investment is significant on two levels: as a contribution to our on-going development fundraising and as a powerful endorsement of our project from a growing UK renewable electricity supplier. We look forward to working in partnership with Good Energy.”
The company is expecting to submit a planning Inspectorate assessment of the scheme for government’s approval before next year's General Election.
If it receives a green light, the Swansea Bay lagoon would start providing electricity into the National Grid by 2018.
In the long-term Good Energy is planning to develop up to five tidal lagoons around the coast of the UK.
Photo Source: BBC