A MULTI-million pound study is to be held to look at the feasibility of a Severn Barrage.

John Hutton, Secretary of State for Business and Enterprise, announced on Tuesday at the Labour Party Conference in Bournemouth that the study would go ahead.

If built it is thought a barrage could generate five percent of the country's energy.

Barry Dare, leader of Gloucestershire County Council, welcomed the news.

He said: "We have been calling for a study for at least two years. It is good news that we have finally managed to get the government to take this issue seriously.

"I am very enthusiastic about the possibility of energy generation from the River Severn but we must have a full study to identify all environmental implications and to find the best technological solution available."

In November last year the county council hosted a conference to debate the possibility of a barrage to generate green energy.

The meeting explored the need for action on climate change, potential for a new barrage and the positive and negative impact energy generation would have on the local and global environment. The Severn estuary contains mudflats, saltmarshes, rocky islands and food that supports more than 60,000 birds in winter and there are naturalists who are concerned a barrage would change the River Severn destroying wildlife.

Last month the English and Welsh governments applied to the EU for Special Area of Conservation status under the Habitats Directive.

Martin Spray, chief executive of the Wildfowl and Wetlands Trust at Slimbridge, called for a balanced assessment when considering a barrage.

He said: "WWT fully backs a shift toward low-carbon energy sources and recognises the potential benefits of harnessing the power of the massive movement of water in and out of the Severn Estuary each day.

"However, the construction of a huge dam across the estuary could have a massive environmental impact on this delicate ecosystem and the wildlife that depends upon it."

A Severn Barrage was first suggested in the 1840s to improve transport links and reduce flooding.

The Government's Energy White Paper of 2003 highlighted the huge cost and environmental impact of the Severn Barrage and it was decided not to pursue it at that stage.