Guptas back UK tidal power

The UK’s tidal power sector received a boost today, with an eight-figure investment by Simec, an international energy and mining business owned by the Gupta family.

The investment sees Simec take a ‘substantial’ stake in Tidal Lagoon PLC, the company behind the Swansea Bay tidal power project. The world-first project was plunged into uncertainty last month when prime minister David Cameron told a committee of MPs that his enthusiasm for tidal power had “reduced slightly” as the project struggles to find a viable level of subsidy.

Chief executive of Simec’s energy and mining divisions, Jay Hambro, said: “We are investing in tidal lagoon as part of a wider strategy to expand our involvement in the renewable sector globally.

“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.

“The scope presented by tidal lagoons for economic growth and job creation in Wales and the UK is clear, and, in partnership with Tidal Lagoon Power, we are also talking to authorities in India about exporting tidal power technology from the UK to develop projects there.”

Executive director at Tidal Lagoon Power, Andrew Manley, said: “We’re looking forward to working with SIMEC to better understand the natural resource in Gujarat and shape our commercial plans accordingly. Back in the UK, we welcome the Gupta family to our investor base at an extremely exciting time for the sector.”

Today’s agreement also leads to the creation of a joint venture between the Guptas’ global energy and commodities company, SIMEC, and Tidal Lagoon Power to develop largescale tidal lagoons in India. 

Gupta family interests have also entered agreement to acquire the Tungsten Bank which they aim to reshape as a challenger bank championing investment in industry, energy and commodities.