UK to launch review into feasibility of tidal energy

(Adds Tidal Lagoon Power comment)

LONDON, Feb 10 (Reuters) - The British government said on Wednesday it will launch an independent review into tidal lagoon energy this spring to understand how it could contribute to Britain's energy mix in the most cost-effective way.

A proposed 1-billion-pound ($1.45 billion) demonstration project to build a tidal energy lagoon in Swansea Bay has stalled because of negotiations over the level of government funding.

Mark Shorrock, Chief Executive of Tidal Lagoon Swansea Bay, welcomed the review but said it should not be a substitute for action.

"It is imperative that we conclude our structuring and commercial negotiation with government within the next 6 weeks. This is entirely possible; the review should not impact the finalisation of our commercial discussions," he said in a statement.

The government said tidal lagoons have the potential to provide Britain with clean and secure energy.

"Whilst progress has been made to understand this technology, more work needs to be done to determine whether they present value for money," it said in a statement.

($1 = 0.6891 pounds) (Reporting by Nina Chestney, editing by David Evans)