An innovative new project that can harness power from tides off the south coast of Wales would be very lucrative for investors, according to new a report commissioned by Swansea council on Wednesday.
New plans for a tidal lagoon project in Swansea Bay includes a floating modular home development, underwater data center, solar farm and the production of pure hydrogen and pure oxygen on site for storage or sale.
Back in 2015, a tidal lagoon power plant project gained planning consent but last year failed to gain U.K. government funding.
The council re-imagined the project and updated it from just an energy project to an infrastructure project, in a bid to generate funding.
Giant underwater turbines are proposed to also feature as part of the Dragon Energy Island project to help power thousands of homes across Swansea and beyond.
Another new element is the potential for a public procurement arrangement, which could see councils and other public sector organizations buy electricity directly from the energy island.
There is potential to make significant savings of up to 30% on the capital costs of the project, the report highlighted.
"The new proposal is a larger and more ambitious renewable energy development that's built upon the natural tidal benefits of Swansea Bay and complimentary technology to generate zero-carbon power," said Rob Stewart, Swansea council leader.
The report is due to be considered by the Swansea Bay City Region's Joint Committee before next steps involving a private sector partner are explored.
If financial backing is secured and planning consent is given, the council believes construction could start in 2021, with the project operational by the end of 2026.
By Zeynep Beyza Kilic