Prudential said its investment represents the first step in the development of a network of coastal lagoons which would provide 8 per cent of the UK’s electricity.
Chief executive of Tidal Lagoon Power Mark Shorrock said: “Securing the backing of a world-renowned investment institution marks another major milestone for the Swansea Bay project and is a clear endorsement of our vision to introduce tidal lagoon infrastructure into the UK’s low carbon energy mix.”
The deal forms part of Prudential’s commitment to invest alongside five other major UK insurance companies a total of £25 billion in the UK’s infrastructure over the next four years.
Prudential group chief executive Tidjane Thiam said “Prudential is committed to invest in infrastructure projects that benefit the national economy. We are also proud to play our part in the development of this world-leading renewable energy technology.”
Construction work is due to start next year on the 240MW development which will generate 495 GWh of electricity each year from 2018, when the project is expected to open.
The 16 turbine lagoon project will become the world’s largest tidal energy generator, producing 90 per cent of the domestic energy in the Swansea Bay region or 11 per cent of Wales’ domestic demand, and helping the UK meet its carbon reduction targets by saving more than 236,000 of CO2 each year.