April 8 (Bloomberg) -- Tidal Lagoon Plc is seeking 10 million pounds ($15 million) from investors to start developing a 650 million-pound project in the U.K.’s southwest that will use the tide to produce power.
The company plans to build a 250-megawatt so-called tidal lagoon across Swansea Bay in Wales that will produce enough electricity to power as many as 107,000 homes a year, it said today in a statement on its website. The project will use changes in the tides to produce power.
Tidal Lagoon plans to raise the first 5 million pounds as Enterprise Investment Scheme shares, a U.K. government-backed system offering tax breaks to investors in “higher-risk” companies. The remaining funds will be non-EIS qualifying shares and will be used to help the company secure planning consent, which is expected in October next year.
“The U.K. imports 65 percent of its energy needs from sources such as Qatar LPG, French nuclear electricity, Australian coal and Saudi oil,” Mark Shorrock, chief executive officer, said in the statement. “We’re creating the world’s first bi-directional hydropower plant and the lagoon will produce carbon savings in excess of 200,000 tons of carbon dioxide a year.”
Britain is aiming to get 15 percent of its energy from clean sources by 2020.
If planning approval is granted, the company will need to raise another 650 million pounds from pension funds and banks, according to the statement. Once the project is working, probably in the middle of 2017, Tidal Lagoon sees returns of more than four-and-a-half times the initial investment.
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