The ambition is to create a Dubai-style island that would offer housing, while also using it as a site to harness wind and solar power as well as tidal energy from a surrounding tidal barrier lagoon containing water turbines.
The consortium behind the Dragon Energy Island development has not yet been publicly revealed.
Welsh innovation group DST, which is working to bring the plan to life, said the members would be revealed in early 2021 when a full schedule of proposals is published.
DST, the driving force behind the consortium, is the inventors of ground-breaking large scale battery technology enabling efficient and sustainable energy storage.
The energy storage capabilities are vital to the success of the Dragon Energy Island, solving the problem of storing the energy created by natural power.
“We’re delighted our technology can be utilised in a project of this magnitude.
“Our products are designed in Wales and this is an amazing opportunity for us to harness the wonderful natural resources we have in our home nation and unlock the abundance of innovation and talent we hold here” said a DST spokesperson.
Rob Stewart, Leader of Swansea Council said “Swansea bay offers an unprecedented opportunity to deliver the world’s first truly integrated tidal energy project.
“This project has the potential to spur a new industry not just for Swansea but for Wales and the UK.
“The impacts on employment and our local economy are set to be significant and perfectly timed as we address the post-covid economy.
“We remain 100% committed to seeing the project delivered in Swansea and are grateful for all of the efforts made by DST to bring together such a strong consortium of organisations with a proven track record of success.”