Tidal Lagoon (Swansea Bay) Plc has reported an operating loss of GBP 6.6 million during its first 18 months of trading.
In terms of expenses during the development phase, this loss is expected, according to the directors.
The company plans to build a 9.5 kilometers long sea wall which would form an 11.5 square kilometers tidal lagoon at the Swansea Bay with a total capacity of 240MW.
The tidal lagoon would be able to power around 120,000 homes with electricity for 120 years.
The construction of this project is expected to start in spring 2015, with the first power produced in autumn 2018 at the earliest, when the project would generate first revenue.
The company stated: “Over the period to Spring 2015 we have to ensure the DCO (Development Consent Order) application is successful through the PINS (Planning Inspectorate ) process, secure Government support for the project in the form of a Contract for Difference which underpins the project revenues, secure land options with the Crown Estate and other landowners, finalise optimising the design components, negotiate fixed price contracts with the prime contractors and secure construction finance to build the project.”
To advance this project, developers will need to gather GBP 850 million.