Good Energy, a leading green electricity supplier will invest in the world's first tidal lagoon energy scheme to be built in the Swansea Bay.
By buying a £500,400 stake in the Swansea Bay Tidal Lagoon project, Good Energy, priding itself on supplying its 40,000 customers with 100 per cent renewable energy, wants to diversify its energy mix.
The £750-850m scheme, lo be located in the Severn Estuary, is still awaiting approval. If given a go-ahead, the project will see a 9.5km wall erected around the Swansea Bay with turbines harnessing the incoming and outgoing tides to generate power 14 hours a day. The plant is expected to generate enough power for 120,000 homes for 120 years,
"This project will enable us to diversify our business by adding tidal energy to our existing portfolio of renewable energy generation,” said Juliet Davenport, Good Energy founder and chief executive.
"This forms part of our long-term strategy of investing in UK renewable generation assets, securing renewable electricity for our rapidly-growing customer base and playing a part in helping the UK secure its energy future."
The Swansea Bay project is the first step towards developing technology that could meet 10 per cent of the UK's electricity needs from the tides by 2023.
Patrick Carter, company secretary and director of Tidal Lagoon (Swansea Bay), said: "This investment is significant on two levels: as a contribution to our ongoing development fundraising and as a powerful endorsement of our project from a growing UK renewable electricity supplier."
The company has submitted an application to build the lagoon and, if it receives the green light, tidal power from the site is projected to be connected to the National Grid by 2018.
Earlier this week, RenewableUK, the trade association representing British wind and marine energy industries, has announced expanding its membership to include companies involved in tidal lagoon energy.
The organisation has covered wave and tidal stream energy since 2004 and will now take on an additional form of tidal power.