No announcement on Welsh tidal lagoon as talks start on Wylfa nuclear plant

UK Business and Energy Secretary Greg Clark announced on Monday that the UK government and Japan's Hitachi Ltd (TYO:6501) have decided to start negotiations on the proposed Wylfa Newydd nuclear power plant on Anglesey, North Wales.

In a statement to Parliament, Clark also said that the government will be considering direct investment in the project, which would provide around 6% of the country's current electricity needs, alongside Hitachi, and the Japanese government agencies and other parties.

The energy secretary, however, made no reference to the Swansea Bay tidal lagoon project in Wales. The Financial Times last week reported that the UK government is poised to reject this project and that the negative decision was expected to be announced on the same day that it unveils the go-ahead for the Wylfa project.

Wales' First Minister Carwyn Jones said in a statement he had spoken with Clark and welcomed the Wylfa announcement.

"I once again reaffirmed to the Secretary of State that the Welsh Government is ready to work with the UK Government to make the Tidal Lagoon a reality and seize the opportunity to position the UK as a world leader in new low carbon technologies," Jones also said.

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