Tidal Lagoon Power has cut its workforce by one fifth as its proposed GBP 1 billion Swansea Bay Tidal Lagoon project faces uncertainty and possibly further setbacks, according to local media.
The company, which currently employs just under 100 people, has reportedly made most of the 17 job cuts at its headquarters in Gloucestershire. No changes were made to the company’s senior management.
“Our short-term priority is the construction of the Swansea Bay Tidal Lagoon and the progression of plans at Cardiff and Newport to harness the country’s best tidal range resource in the Severn Estuary. Our team needs to align with these objectives and regretfully that involves some redundancies,” the company said in a statement.
Back in September, Tidal Lagoon Power ran into a major setback when the start of the construction phase was pushed from spring 2016 to spring 2017 due to the project not achieving a financial close and not obtaining all the necessary permits.
“Our vision is to provide 8% of the UK’s electricity from six tidal lagoons and we have grown quickly so as to take forward these plans. However, our first project is now scheduled to start on site one year later than planned and that inevitably impacts the development of the fleet,” the statement said.
The postponement of the construction phase was caused mostly by the company not reaching a subsidy agreement with the UK government, a necessary step to unlock funds from investors.
The Swansea Bay Tidal Lagoon is a proposed six-mile horseshoe shaped sea wall scheme, which would generate around 0.5 TWh per year, enough to power almost 120,000 homes.
Offshore Wind Staff; Image: Tidal Lagoon Swansea Bay