LONDON (Alliance News) - Prudential PLC Monday said it has been named the cornerstone investor in the GBP1 billion Tidal Lagoon Swansea Bay Project, an infrastructure development designed to generate electricity by using the power of the sea.
In a statement, Prudential said the power station will become the world's largest tidal energy provider when it opens in 2018. According to the FTSE 100 giant, the project will form the first step in the development of a network of coastal lagoons which could generate up to 8% of the UK's electricity needs.
The deal is part of Prudential's commitment to invest alongside Legal and General Group PLC, Aviva PLC, Standard Life PLC, Friends Life Group Ltd, and Scottish Widows a total of GBP25 billion in the UK's infrastructure over the next four years.
Prudential didn't say how much it would invest itself in the Swansea Bay project.
The project will generate over 495 gigawatt hours of electricity every year for 120 years, enough to provide nearly all of the domestic electricity for the Swansea Bay region. It will also help the UK meet its carbon reduction targets by saving more than 236,000 tonnes of carbon dioxide each year.
The construction of the power station is scheduled to begin in 2015 and will create almost 2,000 jobs, Prudential said.
Prudential's long-term insurance funds will provide the funding through its European asset management arm, M&G Investments. In the UK, Prudential currently manages around GBP25.8 billion of direct infrastructure investments.
"The financing of this power station is emblematic of the role that Prudential plays in transforming the hard- earned savings of millions of our customers into long-term, productive investment in the UK economy," Chief Executive Tidjane Thiam said in a statement.
"Such investments provide our customers with strong and sustainable returns, create good jobs and increase productivity and economic competitiveness. Prudential is committed to invest in infrastructure projects that benefit the national economy," Thiam added.
Prudential shares were Monday quoted down 0.3% at 1,348.50 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
