Plans to develop the £1.3 billion Swansea Bay tidal lagoon scheme have been scrapped by the UK Government.
In a statement to Parliament on Monday, Business Secretary Greg Clark said the project and proposed programme of lagoons "do not meet the requirements for value for money", meaning it would "not be appropriate to lead the company to believe that public funds can be justified".
Mr Clark said: "At £1.3 billion, the capital cost per unit of electricity generated each year would be 3 times that of the Hinkley Point C nuclear power station.
"If a full programme of 6 lagoons were constructed, the Hendry Review found that the cost would be more than £50 billion, and be 2 and a half times the cost of Hinkley to generate a similar output of electricity."
Continuing, Mr Clark said it is estimated it will cost at least £31.5bn less to build enough offshore wind to provide the same generation as a programme of lagoons.
"Taking all the costs together, I have been advised by analysts that, by 2050, the proposal that has been made – which would generate around 30 TWh per year of electricity - could cost up to £20 billion more to produce compared to generating that same electricity through a mix of offshore wind and nuclear, once financing, operating, and system costs have been taken into account," he said.
The Business Secretary added it has been calculated this would cost the average British household up to £700 between 2031 and 2050.
The announcement contradicts a government-commissioned review by Charles Hendry in January last year, which backed the £1.3bn project to be built and stated Swansea should be used to investigate the technology's viability as well as making a strong contribution to the economy as well as the UK's decarbonisation goals.
Wales First Minister Carwyn Jones tweeted the UK Government has "dealt another crushing blow" to Wales and the Swansea community.
Elsewhere, Deputy Secretary of Unite Wales, Gareth Jones, called the UK Government's decision a "short-sighted job killer".
"The decision not to back the tidal bay lagoon denies Wales the opportunity of being at the forefront of green energy innovation, while at the same jeopardises hundreds of jobs in turbine production at GE at its sites in the Midlands," he said.
"This is a project which would give Wales an opportunity to build a new industry based upon its unique tidal resource. It has cross party support in both the Welsh Assembly and the House of Commons, with the Welsh government putting up £200 million to support it and keep the strike price down.
"Instead of securing a source of green energy for the next 120 years, the government has turned its back on Wales and made a mockery of its industrial strategy.
"Theresa May's government needs to review this wrong-headed and misguided decision and throw its full support behind the lagoon project which is clearly in the UK's best interests."
However Secretary of State for Wales, Alun Cairns, said despite the disappointment, ultimately the project "did not meet the threshold for taxpayer value".
(LM/MH)
Construction News
26/06/2018
UK Govt Scraps Plans For £1.3bn Swansea Bay Tidal Lagoon


25/04/2025
Aston Villa Football Club has unveiled plans to refurbish and expand the iconic North Stand at Villa Park, a major step in the wider regeneration of the North Grounds.
The redevelopment will raise the stadium's total capacity to over 50,000, with the North Stand alone increasing to more than 12,00

25/04/2025
Morgan Sindall Construction's Southern Home Counties team has officially handed over the newly completed Crawley Innovation Centre to Crawley Borough Council (CBC).
The transformation of the former TUI travel house into a cutting-edge innovation, economic and technology hub drew local leaders, busi

25/04/2025
Clowes Developments has confirmed that construction will soon commence on five new trade counter, warehouse and industrial units at Stud Brook Business Park in Castle Donington, following planning approval from North West Leicestershire District Council.
The new development, Plot 1, will feature fi

25/04/2025
A historic 18th-century landmark has been carefully restored as part of the major Garendon Park housing development in Loughborough.
The Grade II* listed Obelisk, located within the grounds of the former Garendon Hall estate, had endured years of weathering before undergoing a sensitive restoration

25/04/2025
Mace has appointed industry heavyweight, Gary Sweeney, to head up its European team working across the Healthcare, Life Sciences and Technology sectors.
Gary joins Mace following a spell as Interim Director in Turner & Townsend’s Advanced Manufacturing, Industrial and Logistics division in the UK

25/04/2025
A groundbreaking ceremony has recently marked the start of a £5.5 million extension project at Thorp Academy in Ryton, Gateshead.
The development, aimed at accommodating the growing student population, is being delivered by Morgan Sindall Construction on behalf of the Northern Education Trust (NET

25/04/2025
Wakefield-based Henley Stone Specialists has been appointed to deliver Glass Reinforced Concrete (GRC) elements for the first phase of 'Our Cultural Heart', Kirklees Council’s flagship project aimed at revitalising Huddersfield town centre.
Part of the Henley Construction Management Group, Henley S

25/04/2025
More than 2,500 Nottingham homes are set to benefit from energy efficiency improvements as part of a major £153 million regional initiative to cut household bills and carbon emissions.
Nottingham City Council's Executive Board has approved the acceptance of nearly £76 million in Government funding

25/04/2025
Introduction: What Is a Fitted Hoist?
A fitted hoist is a mechanical lifting device installed in the home to help safely move individuals with limited mobility. Commonly found in bedrooms, bathrooms and living spaces, these systems make it easier and safer to transfer someone between a bed, chair,

25/04/2025
Rail services between Hereford and Shrewsbury are facing significant disruption following the collapse of an underground culvert, forcing the closure of the line in both directions.
Emergency engineering works are underway to ensure the safety of the railway.
Network Rail's engineering teams are