Prudential backs Tidal Lagoon with Â£100m
Financial services giant Prudential is set to invest up to £100m in Swansea Bay Tidal Lagoon.
Prudential said it would become the "cornerstone investor" on the £850m 240MW project which will harness tidal energy to create power.
Proposals, which were lodged in February 2014, are currently being scrutinised by the Office for National Infrastructure Planning and construction is expected to go ahead next year.
Mark Shorrock, chief executive of Tidal Lagoon, said: "Securing the backing of a world-renowned investment institution marks another major milestone for the Swansea Bay project and is a clear endorsement of our vision to introduce tidal lagoon infrastructure into the UK's low carbon energy mix."
Tidjane Thiam, Prudential's group chief executive, added: "Prudential is committed to invest in infrastructure projects that benefit the national economy.
"We are also proud to play our part in the development of this world-leading renewable energy technology."
Prudential's long-term insurance funds will provide the funding through its European asset management arm M&G Investments.
The project will generate more than 495GWh of electricity every year for 120 years, enough to provide nearly all of the domestic electricity for the Swansea Bay region.
Last month, Insider reported that Tidal Lagoon is eyeing a number of potential sites across Wales for additional projects, including Colwyn Bay.