Swansea Bay tidal lagoon developer Tidal Lagoon Power has sold an initial 16% stake to the Gupta family, which owns steel producer Liberty House and energy and commodities group Simec, as it looks to India for new opportunities.
The at least £10m investment is in Tidal Lagoon PLC, a holding company established by Gloucester-based TLP to finance the development of full-scale tidal lagoons in UK and international waters.
Simec said its substantial land holding on the Severn Estuary at Newport provided a strong basis for the development of a tidal lagoon and other renewable energy capacity.
The company restarted the 393MW Uskmouth Power Station last June as a coal-fired facility but it intends eventually to convert the plant to biomass.
“We are investing in tidal lagoon as part of a wider strategy to expand our involvement in the renewable sector globally,” said Simec energy and mining chief executive Jay Hambro.
“It’s a very exciting development for us because we see huge potential for renewables in the energy mix and, as such, it will be a substantial part of our business going forward,” he added.
Today’s agreement also leads to the creation of a joint venture between Simec and TLP to develop large-scale tidal lagoons in India.
The first feasibility studies will be conducted in the Gulf of Khambhat under the terms of a memorandum of understanding that TLP is to establish with the Indian state of Gujarat. TLP said Gujurat has expressed “great interest” in the scope for tidal lagoons in the state.
TLP director Andrew Manley said: “Just like the Severn Estuary and Liverpool Bay here in the UK, the Gulf of Khambhat holds vast potential for the generation of power from tidal lagoons.
“We’re looking forward to working with SIMEC to better understand the natural resource in Gujarat and shape our commercial plans accordingly.”
Image: Tidal lagoon at Swansea Bay (Tidal Lagoon Power)
Tidal Lagoon Power looks east
Gloucester developer sells 16% stake to Gupta family for £10m-plus
By EBS