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The UK’s Tidal Lagoon Power received the government’s greenlight late Tuesday to construct the world’s first tidal lagoon project alongside its Chinese construction partners.
The government’s planning consent was welcomed by both the developer and the wider renewables industry as an important milestone in the UK’s drive to decarbonise the power sector.
“This momentous news marks the start of an entirely new industry in Britain, which will lead the world in this innovative ultra-modern technology,” said Renewable UK deputy chief executive Maf Smith.
But the £1 billion project represents not only 320MW of low carbon generating capacity but also the forging of closer ties with the Chinese government which is making steady inroads into the UK’s infrastructure market.
Tidal Lagoon Power is poised to sign an agreement with Chinese government-backed marine developer China Harbour Engineering Company (CHEC) within weeks to pave the way for future tidal power projects in the UK and across Asia.
A spokesman for the developer told Utility Week it expects an agreement between the UK and China to be signed “by the end of this month, or beginning of next” as part of a Chinese state visit.
The memorandum of understanding (MOU) will build on a £300 million deal inked at the beginning of the month between the two. The Chinese company was selected as the preferred bidder to provide a marine works package that will include the construction of Tidal Lagoon Power’s Swansea Bay project.
At the time CHEC chief executive Lin Yi Chong said the company had taken a “strategic decision to enter the UK infrastructure investment and construction market”.
CHEC’s future UK infrastructure projects will not necessarily involve Tidal Lagoon Power, its spokesman said. But the company will work alongside CHEC on projects in China and the wider Asia region.
The MOU is the second major energy agreement signed between the UK and China after a major nuclear agreement – which could be worth “hundreds of millions of pounds” to British companies – was signed to pave the way for Chinese companies to invest in the £16 billion Hinkley Point C project.
The UK and China have also launched a joint £20 million research programme on Low Carbon Innovation, including research on offshore renewables, low carbon manufacturing processes and technologies, and low carbon cities.
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