UK-based developer Tidal Lagoon is planning to raise £10m from its investors to build a 250MW tidal project across Swansea Bay in Wales.
It is looking to raise the initial £5m through a UK government-run system, Enterprise Investment Scheme (EIS) shares, offering tax breaks to firms keen on investing in ‘higher risk’ companies, reported Bloomberg.
The remaining funds will be secured through non-EIS qualifying shares that will be used for obtaining planning approval. It expects to gain the same by October 2014.
Tidal Lagoon CEO Mark Shorrock remarked that UK procures 65% of its energy requirements from sources such as Qatar LPG, French nuclear electricity, Australian coal and Saudi oil.
“We’re creating the world’s first bi-directional hydropower plant and the lagoon will produce carbon savings in excess of 200,000 tons of carbon dioxide a year,” added Shorrock.
In addition, the £650m project is expected to meet the power requirements of 107,000 households per year.
The project is expected to return more than four-and-a-half times the initial investment value, after it begins its operation in 2017.