Ministers go cold on UK’s £1.3bn tidal lagoon plan

PLANS to build the world’s first tidal lagoon off Swansea are hanging in the balance.

International Trade Secretary Liam Fox has refused to meet Austrian engineering firm Andritz, which has been working on plans to build a factory in Wales providing the parts for the lagoon.

Andritz has spent hundreds of millions of euros since 2013 on the project but is increasingly frustrated with the Government’s stalling over whether to give its full backing to the £1.3billion renewable energy scheme.

Ministers have yet to make a decision more than a year after the pioneering project was endorsed by former Energy Minister Charles Hendry in a Governmentcommissioned review.

There are fears Andritz will take its expertise to China and Canada where there is strong interest in tidal lagoon power.

The Austrian firm wants to base its global tidal HQ in Swansea, creating 500 jobs.

Andritz Hydro boss Peter Magauer said: ‘We got strong encouragement in the first phase, but recently had mixed signals. We don’t understand why the UK is hesitating.’

Gareth Barker, of Sheffield Forgemasters which hopes to supply steel for the lagoon, said: ‘This would be a whole new market segment for us.

‘It would guarantee 670 jobs here and create more.’

A Government spokesman said it would continue to consider the Hendry Review and would publish its response in due course.