Prudential has announced that it is the lead investor behind the £1 billion Tidal Lagoon Swansea Bay Project. This is a major infra-structure project which will generate electricity by harnessing the sea’s power.
Once open in 2018, the power station will become the world’s largest tidal energy provider, generating over 495GWh of electricity every year for 120 years. It is part of a network of coastal lagoons which could generate up to 8% of the UK’s electricity needs. It is hoped that the station will provide nearly all of the domestic electricity for the Swansea Bay region. Work starts in 2015 and it will create nearly 2,000 construction jobs.
Prudential is investing, alongside five other major UK insurance companies, a total of £25 billion in the UK’s infrastructure over the next four years. It will provide the funding through its European asset management arm, M&G Investments.
Group Chief Executive of Prudential Tidjane Thiam said: “The financing of this power station is emblematic of the role that Prudential plays in transforming the hard- earned savings of millions of our customers into long-term, productive investment in the UK economy. Such investments provide our customers with strong and sustainable returns, create good jobs and increase productivity and economic competitiveness. 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.”
Chief Executive of Tidal Lagoon Power Ltd 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. Tidal lagoons will employ British industry to harness a British natural resource and return profits to British institutions.”