Plans to build a pioneering tidal lagoon power plant off the south Wales coast look set to be canned today.

Business secretary Greg is due to make a statement on energy policy this afternoon at around 5pm.

A spokesman for the business, energy and industrial strategy department (BEIS) confirmed that the statement concerned the £1.2 billion scheme lined up by developer Tidal Bay Lagoon for Swansea Bay.

The announcement has been scheduled immediately before the BEIS select committee is due to grill energy and clean growth minister Claire Perry on the project.

The minister’s statement is occurring 18 months after the project was recommended for the go-ahead in a report by former energy minister Charles Hendry. It follows months of speculation that the lagoon will be rejected.

The statement follows backing for the project yesterday by the Welsh Conservatives, who said it would be the biggest regeneration boost for Wales since the development of Cardiff Bay.

Suzy Davies, Conservative assembly member for South Wales West, described concerns over the lagoon’s value for money as a “red herring”.

She said it provided an opportunity for the UK to becoming an undisputed global centre for manufacturing such projects.

Davies said: “The tidal lagoon is an opportunity to unleash an economic revolution in Wales, on a scale not seen since the regeneration of Cardiff Bay.

“It’s an innovative long-term source of low carbon energy, built in Wales and supported by a largely UK-based supply chain – including Welsh steel.

“Real value for money comes in being the first – with the UK becoming the undisputed global centre for lagoon expertise and manufacturing.

“Ultimately, this scheme holds great promise to be the most reliable and resilient source of green energy available.

“It has huge local support and all parties in Wales have been supportive of this ambitious scheme since day one.

“The Hendry Review was emphatic and we remain as convinced as ever that this transformational project should be given the go ahead.”

In 2017 Welsh Conservatives sent a letter to the Prime Minister, signed by Welsh Assembly members and MPs (amongst others),  outlining their support for the tidal lagoon.