The investment from InfraRed equals that of Prudential and confirms full equity funding from two British institutions.
The project will generate 500 GWh of electricity every year for 120 years, enough to provide nearly all of the domestic electricity for the Swansea Bay region, comprising the city and county of Swansea and Neath Port Talbot. It will help the UK meet its carbon reduction targets by saving more than 236,000 tonnes of CO2 each year; and establishes a scalable blueprint for a total of six UK lagoons that could between them provide 8% of the UK’s electricity, also for 120 years.
The tidal power station is scheduled to reach financial close in the summer with construction scheduled to begin immediately after.
InfraRed will make the investment from existing funds.
Werner von Guionneau, Chief Executive, InfraRed Capital Partners, stated:
“We are proud to be playing a key role in securing the future of this world-leading renewable energy project. The power station is unique in that it not only leverages the estuary’s second highest tidal range in the world but it will also make a material contribution towards both the local economy in South Wales and the long term stability of sustainable energy supply in the UK.”
Bryn Jones, Head of Development Infrastructure, InfraRed Capital Partners, commented:
“InfraRed has been at the forefront of developing leading edge infrastructure and renewable energy for nearly 20 years. Swansea Bay continues that tradition of development in a market – the UK – which leads the world in infrastructure development.”
Mark Shorrock, Chief Executive, Tidal Lagoon Power Ltd, added:
“The Swansea Bay Tidal Lagoon provides a scalable blueprint for a UK-led global industry that delivers true value to the nation. Tidal lagoons will employ British industry to harness a British natural resource and return profits to British institutions. InfraRed is now a key partner in delivering this vision and we welcome them on board.”