An independent review has backed the development of a tidal lagoon in Swansea Bay, which is hoped to have major benefits for Pembrokeshire businesses.

Saying the technology could play "a cost-effective role" in the UK energy mix, former energy minister Charles Hendry, who led the Government-commissioned study, said lagoons which harness the power of the tides for electricity could help with security of supply, cut carbon and bring opportunities for the UK supply chain.

He called for the Government to move ahead with a smaller "pathfinder" lagoon project, urging it to build on the work that has already been done for a scheme in Swansea Bay.

But he also said the pathfinder project needed to be operational before there was a move to larger schemes, which could deliver low-carbon power at competitive prices.

A clear long-term Government strategy in favour of tidal lagoons would be needed to realise full benefits to the supply chain and to reduce costs, he said.

Preseli Pembrokeshire MP Stephen Crabb has been a keen supporter of Swansea Bay Tidal Lagoon from its earliest stages and was at the press launch of the Hendry report today (January 12).

With the oil and gas industries changing, Mr Crabb has long believed that the engineering industry in Pembrokeshire needs to be looking at new opportunities.

Mr Crabb said: “I’m delighted that the review has come out so favourably for tidal power. Both in and out of Government, I have made the case for investing in this potentially huge new industrial opportunity.

“As Hendry makes clear, this industry could support up to 22,000 new engineering and construction jobs in Wales, providing a real boost to the economy, all at a yearly cost to UK households of just the price of a pint of milk.”

“Here in Pembrokeshire we have outstanding companies with the skills and experience to help build this new UK energy industry. There is no good reason why we should not be in the frame to benefit from the investment.”

Mr Crabb added: “I now urge the Government to act on Hendry’s recommendations and seize the opportunity given to us. Ministers need to make a swift decision and capture this huge economic opportunity that is in front of us.”

Mr Hendry's review was prompted by efforts by renewable energy firm Tidal Lagoon Power to secure subsidies for a £1.3 billion scheme to build the world's first lagoon power plant in Swansea Bay.

The lagoon would involve a U-shaped breakwater built out from the coast, with a bank of turbines turned by water which would harness the rise and fall of the tides to generate renewable electricity.

While the Government has expressed backing for lagoons, former prime minister David Cameron said his enthusiasm had been "reduced" by the costs, with much higher subsidies than nuclear or offshore wind mooted at one stage.

The initial scheme would cost around 30p per household per year for the first 30 years, the review said.

A large-scale tidal lagoon would be less expensive than offshore wind and significantly less expensive than nuclear over the first 60 years of its 120-year life.

The study also said it was "beyond question" that local economic regeneration would follow a tidal lagoon in Swansea Bay.

A Welsh Government spokesperson said: “We very much welcome the publication of the Hendry review. This clearly presents Wales with significant potential opportunities.

“Tidal lagoons provide an opportunity to contribute towards growing a vibrant Welsh industry which delivers prosperity whilst supporting our wider decarbonisation objectives.

“We welcome the observation that there is a very strong case for Swansea Bay Tidal Lagoon to be a small scale pathfinder project, subject to number of key approvals in place.

“We will be considering the content of the report and look forward to discussions with UK Government on how they intend to take the findings forward."