Tidal Lagoon Power – the developer of the Swansea Bay Tidal Lagoon project – has made an agreement with shareholders and creditors to repay its debts over a fixed period of time as the company continues shaping new delivery plan for the Welsh clean energy scheme.
After getting the approval from shareholders and creditors, Tidal Lagoon Power informed it successfully concluded the Company Voluntary Arrangement (CVA) process, which enables it to repay its debts over an agreed period of time.
“We can continue work to deliver Swansea Bay Tidal Lagoon and the wider tidal lagoon program. It is intended that through this work we will be able to settle all creditor claims,” the company said.
Tidal Lagoon Power is continuing work to deliver the Swansea Bay Tidal Lagoon scheme, which was not approved for subsidy support by the UK government in a decision made in June 2018.
Now, Tidal Lagoon Power is considering options for delivering the 320MW clean energy project without the UK government’s support.
“Throughout the summer we met with a wide range of stakeholders who share our determination to shape a new delivery plan for Swansea Bay Tidal Lagoon that is not reliant upon the award of a contract for difference (CfD) from central government.
“A Tidal Lagoon Taskforce has been convened in Wales to enable local and national authorities as well as community and business leaders to consider the full suite of options for financing and delivering Swansea Bay Tidal Lagoon independent to Westminster,” the Gloucester-based company said in a statement.
One month after receiving the ‘official no’ for subsidy support, the report considering various ways of delivering the Swansea Bay Tidal Lagoon was published by financial experts Holistic Capital which also has a track record advising the UK government on large-scale investments.
The report, commissioned by Swansea University on behalf of the Swansea Bay City Region, argues that original £1.3 billion cost of the lagoon could be reduced.
Also, backed with the new funding models, the Swansea Bay Tidal Lagoon could be delivered as purely Welsh initiative, according to the Holistic Capital’s findings.
Designed to last for 120 years, the Swansea Bay tidal lagoon would be capable of generating clean electricity for 155,000 Welsh homes.