Tidal Lagoon Power’s Swansea Bay project has received a timely boost with the announcement of a £10m investment in its parent company.
The Gupta family has taken what has been described as “a substantial stake” in Tidal Lagoon Power Ltd as part of a worldwide strategy to help provide low-cost power to energy-intensive industries, such as steel.
The Gupta family also owns steel group Liberty House, which bought a subsidiary of Caparo Industries after the parent company fell into administration in November.
High energy costs have been cited as one of the reasons domestic steel producers have been undercut by cheap overseas imports, particularly from China.
Meanwhile, the investment will also be seen as a fillip for Swansea Bay Tidal Lagoon, the first of six such projects planned by Tidal Lagoon Power across the UK. Last month, David Cameron told a committee of MPs that his “enthusiasm is slightly reduced” for the project because of the high costs associated with it.
Negotiations between Tidal Lagoon Power and the Department of Energy and Climate Change over the level of subsidy – or strike price – for the project are ongoing but thought to be the main stumbling block for the project’s approval.
Gupta family representative Sanjeev Gupta said: “We are very pleased to invest in this ambitious and innovative enterprise that promises to provide low-carbon, baseload energy and drive economic renewal through the development of a high-value supply chain that will create thousands of new jobs.”
Along with the investment, SIMEC and Tidal Lagoon Power have also agreed to form a joint venture to develop large-scale tidal lagoon projects in India.