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Tidal Power Plc hopes to raise £1.2m to commence initial works on the site of the Swansea Bay Tidal Lagoon and take other important planning steps. The fundraiser lasts until 20 March 2020, and the company aims to use the money to meet planning conditions, start land-side material works and move forward an application for a marine licence.
The lagoon will harvest the rise and fall of the tides. It could operate 14 hours a day, generating electricity for 175,000 homes for the next 120 years.
The project is designed as a ‘pathfinder’ for a potential fleet of tidal lagoons capable of satisfying more than 10% of the UK’s electricity demand for the next five generations. Developers say they will pioneer British modular construction methods, build a new UK hydro-turbine manufacturing plant and establish the country as the world leader in tidal power.
The Development Consent Order (DCO) for the lagoon will expire in June 2020 unless material works have started. Starting works will effectively convert the DCO to ‘evergreen’ status, allowing the full development “when the political climate allows,” according to Tidal Power.
The lagoon has faced political opposition, and in June 2018 the Conservative government declined to subsidise the project with a contract for difference. Now, however, it features in the election manifestos of the Labour Party and Plaid Cymru, with the Liberal Democrats and Green Party also stating explicit support for new investment into tidal power.
“With the increased awareness of the climate emergency, the rationale to deliver lagoons is stronger than ever and that view is shared by the majority of political parties contesting the 2019 general election,” said Tidal Power chief executive Mark Shorrock.
“However, we must first remove the cliff-edge from Swansea Bay Tidal Lagoon’s planning permission. No amount of political will can resurrect this vital pathfinder project if the planning permission is allowed to lapse. That is why we’ve launched our new fundraiser today. By raising a relatively modest sum we can retain for the UK the option of large-scale, multi-generational tidal power.”
Roger Evans MBE, chairman of the independent Tidal Lagoon Industry Advisory Group, said: “For the last five years we have been working to secure this exciting new industry for Wales. Major infrastructure projects always take longer than initially envisaged but the looming deadline for the planning consent means that timing really now is critical if we are ever going to deliver on lagoons for the people of Wales. For the sake of our economy and our environment, we really can’t miss this opportunity.”
The project has already received £37m from 450 individual investors. Shares are priced at £2.50 and offered at a minimum subscription of £500, so the Investor Memorandum targets high net worth individuals or experienced private company investors.
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