British industrial components and expertise will be at the heart of tidal lagoon turbine production following the appointment of General Electric and Andritz Hydro as preferred bidders to the £1 billion Swansea Bay Tidal Lagoon infrastructure project.

Last year, a report by the Centre for Economics and Business Research found that the emergence of a global tidal lagoon industry could present an export industry valued at £70bn to the UK economy.

The two companies, bidding together for the £300m contract to supply sixteen bi-directional turbines to the world's first tidal lagoon power plant, have committed to a majority of British large turbine components, to British generators, and to the operation of a dockside Turbine Assembly Plant in Wales that will employ an initial 100 skilled workers. The turbines will be based on proven Andritz Hydro global technology.

GE, one of the UK’s leading overseas investors, will play a critical part in this first-of its-kind project, manufacturing and assembling key components in the UK. The project’s sixteen generators – the highest value component in the 700 tonne turbines - will be produced at GE's Rugby facility. In addition, GE is working on plans to potentially reshore its medium voltage switchboard operations for the UK tidal lagoon industry at its Kidsgrove facility. This could create further UK jobs and position GE well for further tidal opportunities in the UK.

GE and Andritz Hydro will now conclude British supply contracts for turbine and generator components. Industrial facilities in Swansea Bay, Pembrokeshire, Monmouthshire, Carmarthenshire, Mid Glamorgan, Vale of Glamorgan, South Yorkshire, North Yorkshire, Staffordshire, Merseyside, South Tyneside, Greater Manchester, North Lincolnshire and Cumbria are among those seeking to secure contracts.

The companies have also been selected as preferred bidders for the £25m contract to manage the operations and maintenance of the Swansea Bay Tidal Lagoon power plant for a minimum of five years.

Roger Evans MBE,  chair of the Tidal Lagoon Industry Advisory Group, an independent body established thirteen months ago by Tidal Lagoon Power to ensure that the country capitalises on the emergence of a new global energy industry on home soil, said:

"While Britain does not have a top turbine OEM, it does have the industrial heritage, the skills and a capable supply chain ready to supply the majority of the components involved. The developer has been crystal clear in its intention to buy British. Our group will now work to prepare British industry to hit scale quickly and in so doing create a brand new global industry based in the UK.”

Working with the Welsh Government, Tidal Lagoon Power, developer of the Swansea Bay Tidal Lagoon, has shortlisted three potential sites in the Swansea Bay City Region (comprising Swansea, Neath Port Talbot, Carmarthenshire and Pembrokeshire) for a 100,000 square foot Turbine Assembly Plant that will scale operations as the sector develops at home and internationally. Initially employing 100 skilled workers and capable of shipping one 7.35m diameter runner turbine a month, the facility is expected to scale operations by six times by 2018, shipping at least one turbine a week as the UK moves to the construction of full-scale tidal lagoons.

Tidal Lagoon Power intends to follow the Swansea Bay Tidal Lagoon, scheduled to commence construction later this year, with five full-scale tidal lagoons in UK waters. Between them, the six projects could provide 8% of the UK's electricity for the next 120 years.

Mark Shorrock, CEO at Tidal Lagoon Power commented:

"Tidal lagoons will employ British industry to harness a British natural resource and return profits to British institutions. We are now well placed to meet the targets we set ourselves for 50% of the capital expenditure for the Swansea Bay Tidal Lagoon to stay in Wales, rising to 65% for the UK as a whole.

The project will lay the strongest possible foundations for a brand new industry in which Britain can lead the world.

"Over the past two years, our team has been lucky enough to work alongside the world’s three largest hydro turbine manufacturers who between them are responsible for some 70% of all hydro turbines ever sold. Together, we have iterated a bespoke turbine design for Swansea Bay that delivers 93% efficiency on the ebb tide and 81% efficiency on the flood tide. Now with GE and Andritz we will make the very most of the first-mover advantage on offer to Welsh and wider UK industry.

The Turbine Assembly Plant in South Wales is the very embodiment of this and with turbine partners committed to operate the facility, we’ll work with Welsh Government to get the job done.”