Concerns raised over US firm linked to new lagoon
A FORMER Swansea Lord Mayor and Assembly Member has raised concerns about a £1.7bn investment project which it’s claimed will create thousands of jobs and place Wales at the forefront of renewable energy innovation.
A US company linked to the project “doesn’t have a website, a phone number, an email address, or a social media account”, says Peter Black, a Liberal Democrat councillor in Swansea who was last year’s Lord Mayor and represented South Wales West on the then National Assembly for 17 years until 2016. He is standing for election to the council again this year. He is asking whether Swansea Council had done due diligence checks before endorsing the project.
Part of the project involves the building of a tidal lagoon on Swansea’s waterfront that will feature underwater turbines generating 320 megawatts of renewable energy from the 9.5km structure.
The lagoon is part of the larger proposed Blue Eden project that’s being led by Bridgend-based DST Innovations and a number of business partners, with support from Swansea Council and Associated British Ports, and which is due to be delivered in three phases over 12 years. Another strand involves a battery factory in Swansea that would employ 1,000 workers.
Last year DST announced it had formed a joint venture with Blue Rock Manufacturing of Morgantown, West Virginia. A battery factory was being built in the state and another would be built in Swansea.
DST was working with Swansea Council to identify a preferred location for the factory, which could require a £50m investment.
The ownership split for the factories was based on DST owning 70% of the shares with the remaining 30% held by Blue Rock.
Mr Black said: “There are a number of unanswered questions about this project. Our researcher has found no evidence that Blue Rock Manufacturing is even operational at the moment, never mind equipped to deliver products on the scale DST and Swansea Council are claiming. The fact is that Blue Rock Manufacturing doesn’t have a website, a phone number, an email address or a social media account.
“When you Google ‘Blue Rock Manufacturing, Morgantown’ you find a listing for them at Morgantown Industrial Park. But when you research the website for Morgantown Industrial Park and see their current tenant listing, you find that Blue Rock has no presence there.
“A number of questions arise. How are DST funding this huge investment in Swansea? What track record do they and their partners have in delivering a project of this scale? What due diligence has Swansea Council carried out before engaging with this company?”
Joanna Pontin, executive vice president of communications for DST Innovations, said: “During its 11-year history, DST has amassed a substantial amount of intellectual property and experience, delivering projects for global blue-chip clients, and is well known in the USA for creating lighting and screen solutions for substantial hotels and complexes and resorts.
“In 2018 DST’S ongoing market research and logistical planning highlighted the need for a USA base to facilitate growth and enhance delivery capabilities. Work began to create Blue Rock Manufacturing inc, as an independent American company to act as a contract manufacturer, supplying DST Innovations for its USA order book. When a suitable location was found for the company, it was incorporated – prior to this, formal incorporation was not needed to complete the necessary business planning and discussions.
“The founders of Blue Rock Manufacturing are all existing business people and entrepreneurs and have financed the creation of the manufacturing facility located in Morganstown, West Virginia. They bring to the new company a varied and successful global portfolio of experience in material processes, manufacturing, supply chain logistics, and services. From its base in Bridgend, DST will be exporting skills and knowledge to help train the new staff in West Virginia.
“Plans for the development are ongoing and the global teams are working to bring this multi-faceted project to fruition. To deliver Blue Eden to the highest standard, a panel of well-known companies has been amassed and will be announced in the coming quarter. The companies include energy delivery and infrastructure specialists, construction, planning and surveying, data centre construction, and home developers.
“Blue Eden is a private sectorfunded development, and as such no public funds are sought. Public consultations and normal planning and consenting will be carried out as expected for large developments such as this. Confidentiality and commercial agreements restrict the amount of information that can be published at this time. DST will continue to inform the public and press as soon as possible and as the project progresses.”
A spokesman for Swansea Council said: “As DST has stated, the planned project will be entirely private sector-funded. We have not committed any council resources to DST’S project. In addition, there is no contractual or partnership relationship with DST except for a potential land disposal which, should it go ahead, will be at market rates. Consequently, due diligence approaches do not apply.”
Peter Black is standing in the Cwmbwrla ward. Also standing for election in the Cwmbwrla ward are: Ilona Gofmaniene (Freedom Alliance), Margaret Greenaway (Welsh Labour), Chris Griffiths (Welsh Conservative Party), Malcolm Harrington (Welsh Labour), Christopher Ashleigh Holley (Welsh Liberal Democrats), Ian Isaac (Welsh Labour), Lewis Graham Thomas (Welsh Liberal Democrats), Rhiannon Adele Wall (Wales Green Party).