John McDonnell has confirmed the backing of Labour’s front bench for plans for a £1.5 billion tidal barrage project in the Mersey.
The shadow chancellor told the Financial Times yesterday (7 March) that Labour would use its proposed regional investment bank to bankroll the project, which would contribute to the party’s target to generate two thirds of electricity from renewable sources.
Steve Rotheram revived the tidal power project after winning the vote to become metro mayor of the Liverpool city-regional authority last year.
In November 2017, Rotheram appointed former Dong Energy UK chair Brent Cheshire to head a special purpose vehicle to take the project forward.
Cheshire is working up a core business case for the project, which is due to be delivered by the end of this year.
The shadow chancellor gave a commitment to Rotheram that a future Labour government would support the plans for the Mersey tidal project when he visited Liverpool at the beginning of February, accompanied by shadow business secretary of state, Rebecca Long-Bailey
The Liverpool city regional authority, which covers the Merseyside urban area, agreed earlier this month the inclusion of a special provision for a project in its budget to harness the energy of the Mersey.
Peel Energy and the now defunct Northwest Development Agency conducted a feasibility study for a tidal power scheme in the Mersey Estuary in 2011. This identified a barrage across the river between New Ferry in Wirral and Dingle in Liverpool as a preferred solution. However, the plans were never progressed due to high construction costs at the time.
The study found that the project could deliver electricity at a cost of £120/GW hour.