The project will be the first tidal lagoon in the world to generate electricity, and will establish a new waterfront for Swansea with a focus on water-based activities.
Alister Kratt, board director at LDA Design which led the masterplan for the project, said: "This announcement is exciting news for everyone involved in the project. We look forward to our continued role in this project and supporting Tidal Lagoon Company on the promotion of their other UK lagoon projects."
Mark Shorrock, CEO of Tidal Lagoon Power, the company behind the Swansea Bay Tidal Lagoon, said: "With the Swansea Bay Tidal Lagoon becoming a reality, locking in 120 year life, zero carbon energy infrastructure, we have the potential to help transform our industrial economy and the UK’s energy mix."
The project has the potential to create a whole new industry, he said.
"We see it as a game-changer, a scalable blueprint, paving the way for a fleet of lagoons that can work in harmony with nature to help secure the nation’s electricity for generations to come."