Corbyn-Backed Tidal Power Project Needs $1.5 Million to Survive

(Bloomberg) -- A U.K. project to bring a pioneering tidal power plant to Wales that was tossed out by the government plans to raise 1.2 million pounds ($1.5 million) to keep the plan alive.

Tidal Lagoon Power Ltd. needs the money to preserve planning permission for the pilot project designed to produce 320 megawatts of clean electricity from the rise and fall of tides in Swansea Bay. Opposition Labour leader Jeremy Corbyn has committed to building the lagoon if his party wins the election.

The U.K. government rejected the 1.3 billion-pound proposal as too expensive compared with other forms of clean energy. TLP had sought subsidies per megawatt-hour of electricity generation on par with those already granted to Electricite de France SA's Hinkley Point nuclear power project.

Then Energy Secretary Greg Clark said the cost couldn't be justified given that offshore wind farms could supply the same energy more reliably for 400 million pounds.

TLP says that the world-first project would create thousands of jobs and pioneer a new manufacturing industry in the U.K. While the Conservative Party were the ones to block progress both the Labour Party and Liberal Democrats have promised to invest in the renewable energy source in their manifestos.

“With the increased awareness of the climate emergency, the rationale to deliver lagoons is stronger than ever,” said Mark Shorrock, TLP's chief executive officer. “However, we must first remove the cliff-edge from Swansea Bay Tidal Lagoon's planning permission.”

Shares are being offered at 2.50 pounds each with a minimum subscription of 500 pounds. The founding investor base has pledged a six-figure investment to start the round, TLP said.

To contact the reporter on this story: Jeremy Hodges in London at jhodges17@bloomberg.net

To contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net, Andrew Reierson, Lars Paulsson

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