Atlantis Resources is in negotiation with the Duchy of Lancaster as preferred developer for the proposed Wyre Valley tidal barrage and flood protection project.
Atlantis said the project would be chiefly situated on the Duchy estate between Fleetwood and Knott End on the Lancashire coast.
Atlantis said that it and the Duchy would now enter into a period of negotiation to reach agreement regarding an option for a long-term lease for the proposed site to permit the development of a tidal power scheme with a proposed installed capacity of 160 MW.
Atlantis said it was currently predicted that the project would be capable of producing almost 300 GWh of sustainable energy each year, coupled with flood protection capabilities.
Atlantis added: "It is expected that the process of obtaining all necessary consents to begin development will take approximately three years, but this option agreement would give the necessary rights and access for the majority of the required land."