August 5 (SeeNews) - UK-based Natural Energy Wyre Ltd is currently engaged in the foundation work to get a development consent order (DCO) for its 120-MW tidal hydro energy project in Lancashire, northwestern England.
The Fleetwood-based company will afterwards negotiate a Contracts for Difference (CfD) with a strike price of GBP 105 (USD 138/EUR 124) per MWh, its managing director Bob Long told SeeNews Renewables. The developer has already held discussions with the UK Department of Energy & Climate Change (DECC) and now needs to hold talks with the new department, as well.
Natural Energy Wyre has been working on the project for several years now, collaborating with international consultants in the fields of engineering, construction, turbines and environmental studies. Its plan is to install turbines on the River Wyre that would convert the power of the tides into electricity. The company rules out any chance of technological failure given that existing projects in Brazil, France, South Korea and Russia use the same basic technology.
The total cost for building the plant will be less than GBP 300 million, meaning that it will beat that of nuclear power.
“Our financial modelling indicates that a relatively small level of financial support is required, comparable to other more established technologies, and all with considerably shorter life spans,” Long says in a statement.
If completed, the tidal hydro energy plant will be able to generate over 200 GWh of electricity per year, enough to power more than 50,000 homes. It will have a lifespan of at least 125 years.
(GBP 1.0 = USD 1.313/EUR 1.178)