Atlantis Resources has entered into negotiations with the Duchy of Lancaster for a long-term lease option to build a 160MW tidal barrage near Fleetwood.
The Scottish tidal player said the option agreement would give it the necessary rights and access for the majority of the required land on the Duchy estate between Fleetwood and Knott End on the Lancashire coast.
Atlantis expects it will take approximately three years to obtain all necessary consents to begin development.
Chief executive Tim Cornelius said: "This will be a major project for our Atlantis Energy division as we continue our diversification strategy and we look forward to working with the Duchy of Lancaster our partners, investors and supply chain to bring the project to fruition."
"The Wyre Valley tidal barrage and flood protection project represents a hugely exciting opportunity to showcase the UK's world leading commercial tidal energy potential.
The 160MW project being developed with Natural Energy Wyre is currently predicted to be capable of producing almost 300 gigawatt-hours per year.
Image: Impression of river Wyre barrage (Natural Energy Wyre)