Swansea Bay Tidal Lagoon appeal letter handed to No 10

An artist's impression of the lagoon across Swansea Bay

More than 100 businesses have signed a letter urging the prime minister to give a £1.3bn tidal lagoon in Swansea Bay the go-ahead as soon as possible.

It is 10 months since former energy minister Charles Hendry's independent report backed its "strong contribution" to the UK's energy supply.

But the UK government has concerns over the level of subsidy wanted for the power generated.

The letter was delivered to Downing Street on Monday.

The company behind the proposal claims the tidal lagoon could generate electricity for 155,000 homes over 120 years, while investors have warned it risks stalling unless a green light is given soon.

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Firms who have signed the letter include Tata Steel UK, Penderyn whiskey, Castell Howell Foods, WRW Construction, Swansea City Football Club and the Ospreys and Scarlets rugby regions.

Penderyn owner Nigel Short and Swansea council leader Rob Stewart handed the letter to Prime Minister Theresa May.

"Swansea needs it, Wales needs it and the world needs to embrace innovative, sustainable energy production of this kind to reduce our reliance on fossil fuels," Mr Short said.

Mr Stewart added: "This innovative, game-changing project is far too important to be shelved in any way. It's worth many thousands of jobs to Swansea Bay and would generate zero-carbon power for over a century.

"Why are we still waiting for a UK Government decision? Even their own independent inspector backed this project - and that was 10 months ago. With private sector investment and confidence on the line for the Swansea Bay Tidal Lagoon, time is now very much of the essence.

The 100 companies that have signed the letter say they "represent over 30,000 workers".

Sports stars have contributed videos for the 'Love the Lagoon' social media campaign while Total Eclipse of the Heart singer Bonnie Tyler and Gavin and Stacey actress Melanie Walters, who plays Stacey's mother Gwen in the hit TV show, have showed their support.

A UK government spokeswoman said: "The government is considering the recommendations of the Hendry review and taking the time needed to determine what is in the best interests of UK energy consumers and taxpayers in the long term.

"We will publish our response in due course."