Alstom has agreed to design and build turbines for the proposed Swansea Bay tidal lagoon.
A memorandum of understanding was signed between the firm and Tidal Lagoon Power for Alstom to develop the generating units required for the proposed 250MW plant in Swansea Bay.
The company said that the£650 million project could be connected and ready by 2017.
Ton Fijen, technical director for Tidal Lagoon Power, said: “The Swansea project will hopefully be the first in a network of lagoons around the UK coastline, driving a critical change in our energy mix with low cost, low carbon electricity sources that are sustainable long-term.”
The detailed plans are being finalised before the public consultation this summer, with plans being submitted to the Planning Expectorate in the late autumn.