A Chinese company has been selected to help build the world's first artificial tidal lagoon to generate clean electricity for British homes, the company behind the project said on Wednesday.
Tidal Lagoon Swansea Bay (TLSB) named China Harbour Engineering Company (CHEC) as preferred bidder for a £300 million (HK$3.55 billion) contract for the proposed plant. The £1 billion project will harness the huge tides from the Severn Estuary that separates England from Wales and generate power to 155,000 homes for 120 years, if planning permission is granted.
British Prime Minister David Cameron told parliament Wednesday that tidal power had "significant potential" and said that the Chinese investment was "a win-win for both countries".
CHEC and TLSB have also signed a bilateral agreement to develop tidal lagoon power projects in Asia, particularly at sites along China's coastline.
Around half of the contract value is to be spent on British workforce, partners and supply chain.
Lin Yi Chong, president and CEO at CHEC, said the scheme "could bring the world a new energy option".