Guto Bebb
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Simon Hart
My hon. Friend is of course absolutely right. At least 50% of the £20 billion investment to which I referred is to be in Wales, so by definition the other half is not. My very next comment was to be that more than 1,000 companies have already expressed interest in this project, or these projects. I have seen a rough outline map, and the whole of the UK is covered. The line-up is impressive, and includes companies such as General Electric, Andritz Hydro, components suppliers, construction companies and a whole range of small and medium-sized enterprises from sandwich makers to pretty much every area of SME activity in Wales and beyond. Everyone in the Chamber will have a bite of the cherry, in terms of constituency interest, as might plenty of those who are not present and do not yet realise it. Our job is to remind them of that.
My third point is about cost, which has been cited regularly as a major obstacle to progress on the project, despite its being a manifesto commitment and Government having trawled the numbers for a long time. It cannot come as a particular surprise that the costs are what they are. However, over 90 years—this is key—the Swansea bay tidal lagoon needs a contract for difference, or CfD, of £118 per MWh, which is the same as for offshore wind projects that already have consent. So Government have already taken a favourable view of projects at that cost, admittedly possibly over a different timescale. None the less, the revised figures show a more attractive number as far as value for money for the British taxpayer is concerned and, once we add in Newport and Cardiff, the cost actually falls to £68.3 per MWh, which really gets it into the realms of acceptability in anyone’s language—even that of the Treasury during these difficult times.
That means that if the Swansea project alone were to be built at the current cost, arguably 10p per annum would be added to energy bills throughout the UK. If we add Newport and Cardiff into the scheme, let alone all the other places that we are talking about, annual bills would be reduced by between £8 and £12. So Swansea alone will add 10p per household bill per year, but Swansea with Cardiff and Newport will start to make significant reductions to householders’ energy bills.
That leads me to my fourth and final point, which is the other benefits. We have not learned much about them so far. Starting with leisure and tourism, the comparable Rance project in France attracts between 70,000 and 100,000 people a year, and there is no reason to believe that the same level of attraction cannot be generated for Swansea and the other tidal lagoons. There is already interest in individual sporting events around the lagoon constructions, which could attract up to 8,000 people a year. Plans are afoot for an offshore visitor centre, sailing and boating centres, and a hatchery. Local and national sporting groups have put in for a sailing triathlon, and there are rowing, canoeing, open-water swimming and sea angling ideas and concepts. There is no shortage of significant extra activity around the lagoon constructions, which can only be good for the tourism offer and employment in Wales.
The great unknown is the export of technology. The lagoon products will be at the cutting edge of global technology, so we have the possibility of creating and growing our own experts in the field, with our own concepts, ideas and plans, which could be exported to 30 or 40 countries, all of which have potential capacity for tidal lagoon generation.
That leads me to steel. I have had various conversations with interested parties, and the fairly modest figure for the steel requirement on the Swansea bay project alone is 370,000 tonnes. Anyone who has been following the plight of the steel industry in Wales and beyond will prick their ears up at that potential for rescue and sustainability. In passing, one potential investor in the project is Liberty Steel, which has already stated that it would move its operation to Wales in the event of the go-ahead from the UK Government, because it sees the opportunity for a UK recycled steel project. At the moment, recyclable steel is exported, recycled and then reimported for use in the UK, which is a crazy situation in anyone’s language. Now we have investors thinking that the scale of the tidal lagoon projects is sufficient to enable them to set up shop properly in the UK, thereby forgoing the need to export 5 million tonnes of recyclable steel. We could do it all here, with significant benefits for the country that are not only to do with tidal lagoons.
Guto Bebb (Aberconwy) (Con)
My hon. Friend is making a strong case for looking at the development in the round. Is it not also the case that a tidal lagoon in north Wales would not only be an energy and tourism-generating opportunity, but play a significant part in flood defences? That is another issue that should be brought into the equation.
Simon Hart
My hon. Friend makes a good point. Many people have raised issues with me in support of tidal lagoon technology but I had not heard that one. It is useful to use occasions such as this in Westminster Hall to bring to the Minister’s attention the added benefits that somehow never seem to get into the Treasury calculations as prominently as they might.