US-based General Electric (GE) has formed a consortium with Austrian engineering firm Andritz for supplying equipment at the power-generating hydro project in Swansea Bay, UK.
The consortium will receive approximately €400m for the project, reports The Economic Times.
Andritz will receive €250m from the deal, with the rest being shared by GE.
The hydropower facility is located in the Severn Estuary. It has been scheduled to start operations by 2019.
Tidal Lagoon Power is the developer for the project. The development will be equipped with 16 underwater turbines.
Once operational, the project is expected to generate enough power to meet the electricity demands of 155,000 homes for 120 years.
In December last year, the UK Government revealed details of negotiations to arrange taxpayer support for the project, which is expected to involve an investment of £1bn (€1.3bn).
The National Infrastructure Plan 2014 published by the HM Treasury, ahead of the Chancellor’s Autumn Statement, included plans for the tidal project development.
UK Energy Secretary Ed Davey was earlier quoted by BBC News as saying: "Tidal lagoons alone could provide up to 8% of our power needs, replacing foreign fossil fuels with clean, reliable, home-grown electricity."