Insurance company Prudential has been named as the cornerstone investor in Tidal Lagoon Swansea Bay project. According to the deal, Prudential plans to invest up to $160 million in the first renewable energy scheme of its type in the world.
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’s long-term insurance funds will provide the funding through its European asset management arm, M&G Investments. In the UK, Prudential currently manages around £25.8 billion of direct infrastructure investments.
Construction works on this mega project should begin in spring 2015 if the project gets approval from the Office for National Infrastructure Planning.
So far, Costain, Atkins, and Van Oord have the best chance to design, build and deliver the project.
Tidjane Thiam, Group Chief Executive, Prudential plc, 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.”
Mark Shorrock, Chief Executive, Tidal Lagoon Power Ltd, added:
“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.”
The Swansea Bay Tidal Lagoon is a 320MW installed capacity project that has been accepted for consideration as a Nationally Significant Infrastructure Project and seeks to establish a blueprint for the rapid roll-out of a new form of home-grown and built, low carbon energy infrastructure in the UK.
Dredging Today Staff