Swansea Bay tidal power firm launches £2m share offer

An artist's impression of how the lagoon in Swansea could look An artist's impression of how the lagoon in Swansea could look

Related Stories

A firm behind proposals for a £650m tidal lagoon in Swansea Bay is offering £2m worth of shares to the local community.

Tidal Lagoon Swansea Bay says buying shares at £800 each would make people "early stage investors" in the planning and design phase of the proposal.

The company hopes to submit a planning application in October and the lagoon could be working as soon as 2017.

It says the lagoon could generate enough energy to supply 107,000 homes.

Mark Shorrock, chief executive of Tidal Lagoon Swansea Bay, said those living in Wales will have priority to buy shares over the next five weeks.

The money would go towards the firm's target of raising £10m funding from the public.

Risk warning

Start Quote

We believe that tidal lagoons are a viable, large scale alternative to traditional fossil fuel and nuclear electricity production”

End Quote Mark Shorrock Tidal Lagoon Swansea Bay

Half of that figure is made up of large-scale investors, while the other half comes under the Enterprise Investment scheme which includes the £2m shares offer.

"The share offer is a high risk investment as the proposed funds raised, being £10m in total, will be spent on the development phase," Mr Shorrock said.

"There is no guarantee of securing development consent or securing construction finance thereafter, which is expected to be in the region of £650m to £750m."

He added: "We believe that tidal lagoons are a viable, large scale alternative to traditional fossil fuel and nuclear electricity production.

"They combine proven technologies and civil engineering construction methodologies in an innovative configuration to generate predictable, clean electricity for our children, grandchildren and great-grandchildren."

The planned lagoon, which would take about two years to build, would comprise an impounding breakwater or seawall about 10.5km (6.5 miles) long, capable of holding 11 sq km (4 sq miles) of water.

Visitor centre

It would hold on to water and then let it out through turbines at both high and low tides which would generate electricity.

At low tide, water would flow from the lagoon into the sea, and from the sea into the lagoon at high tide.

But its size - over 100 megawatts - means its future will be decided by the UK government.

There are also plans for an offshore visitor centre.

Plans for tidal power in Swansea Bay were first mooted in 2003 when a charity wanted to harness the tides to provide electricity for up to 10,000 homes.

In 2006, a firm called Tidal Electric Ltd put forward proposals to take the project on, but that has since been put on hold.

Now Tidal Lagoon Swansea Bay believes it can bring the project to reality.

Should the proposals go ahead, it is estimated the lifespan of the lagoon would be 100 years.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

BBC South West Wales

Weather

Swansea

Min. Night 13 °C

Features

  • Nigel Farage (left) and Douglas CarswellWho's next?

    The Tory MPs being tipped to follow Carswell to UKIP


  • A painting of the White House on fire by Tom FreemanFinders keepers

    The odd objects looted by the British from Washington in 1814


  • President Barack Obama pauses during a press conference on 28 August.'No strategy'

    Obama's gaffe on Islamic State reveals political truth


  • Chris and Regina Catrambone with their daughter Maria LuisaSOS

    The millionaires who rescue people at sea


  • Plane7 days quiz

    What unusual offence got a Frenchman thrown off a plane?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.