Port of Milford Haven

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The industrial cluster around the Milford Haven Waterway is ready to support the global challenge to reach net zero.

Together Stronger

Collaboration and sustainability are at the heart of Pembrokeshire’s energy future

The Port of Milford Haven is the UK’s largest energy port and a core component of the UK’s energy network, supplying a fifth of the UK’s oil and gas needs. High capacity oil and gas pipelines and electricity connections transport energy from the Milford Haven Waterway to every part of the UK.

Over the past 60 years the Port of Milford Haven has managed the emergence of two energy revolutions - oil in the 1960s, and Liquefied Natural Gas from the late 2000s. The area’s unique maritime and energy infrastructure, together with the presence of brownfield sites, has attracted billions of pounds of investment in recent decades and that is why today’s energy grouping using the Milford Haven Waterway – including Valero, South Hook LNG, Dragon LNG, Puma Energy and RWE – exists, supporting more than 5,000 Welsh jobs and providing £400m of Gross Value Added worth to the region. And the next chapter of Pembrokeshire’s rich maritime and energy story is being written as it takes a central role in the journey to net zero. Today it is at the forefront of a third revolution – renewable energy. Plans to transform the energy mix along the Milford Haven Waterway, one of the world’s deepest natural harbours, will deliver major benefits to Wales’ and the UK’s carbon reduction plans and help position Wales as a leader in renewable energy innovation.

Green Industries Wales PORTS

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Energy Generation & Distribution

To achieve the 2050 net zero targets set by the UK and Welsh governments, renewable electricity generation must treble (from 120TWh to 360TWh), and the use of renewable gases such as hydrogen must expand exponentially (from less than 1TW today to potentially 50TW). A sea change in energy storage is needed, along with bold new systems for CO₂ capture and storage.

The most pressing focus is to unlock the full potential of the marine energy and floating wind industries in the Celtic Sea.

It is an opportunity that Wales must be quick to grasp. The UK is already a world leader in offshore wind with a target of 40GWh deployed by 2030. To deliver this, the development of the Celtic Sea will intensify, with an initial target of 1GW for floating offshore wind (FLOW) by 2035. To realise this opportunity for Wales, stakeholders and government must act decisively and swiftly as international competition is strong.

Pembrokeshire is ready to make a unique and potent contribution to the task ahead and its ability to deliver for Wales is convincing: close proximity to the Celtic Sea FLOW sites, a deep-water port, existing, high capacity oil and gas pipelines and electricity connections, extensive energy expertise plus the growing cluster of world-leading marine renewables companies calling the Haven their home, crucially enabling Celtic Sea operations to be supported and serviced.

Key to Wales winning the race to the opportunities the Celtic Sea offers, is enhanced port infrastructure. Some of this will be delivered by the £60m Pembroke Dock Marine project - an integral part of the £1.3bn Swansea

Pembroke Port – where infrastructure upgrades will soon begin, creating a world-class marine energy and engineering base.

Blue Gem Wind is pushing forward with Wales’ first floating wind farm Erebus in the Celtic Sea. Photo: Principle Power/Artist DOCK90

City Bay Deal programme signed off by the UK and Welsh Governments.

Pembroke Dock Marine is a collaboration between ORE Catapult, Marine Energy Wales, Celtic Sea Power and the Port of Milford Haven. It builds upon an already strong proposition to establish a world-class centre for marine energy and engineering on the Milford Haven Waterway. Its ambition is simple, to drive industrial innovation and operational efficiency. This public/private sector collaboration has paved the way for Pembrokeshire and the rest of Wales to have a stake in the renewable energy market, but as the floating wind industry grows and its demands increase, more development is needed and so there is huge potential to build on this.

Parallel to the harvesting and distribution of clean energy, transitioning to a greener economy also brings a wealth of opportunities for job creation in

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the region: Pembroke Dock Marine is expected to generate £73.5m a year for the regional economy and create more than 1,800 jobs over the next 15 years, and 1GW of FLOW is worth more than £680m in supply chain opportunities and 3,000 jobs over the next ten years.

The Port is allocating £50m over the next five years to support this growth and position itself at the forefront of the UK’s transition to green energy.

Related to the Celtic Sea opportunity, no single clean energy development is of more significance than the Milford Haven Waterway’s potential to lead in the production and distribution of green hydrogen - the potentially gamechanging fuel to help deliver net zero.

Groundbreaking green hydrogen projects are already establishing themselves on the Milford Haven Waterway and receiving international attention. MH:EK- the Milford Haven Energy Kingdom is taking the lead.

MH:EK is a £4.5m project exploring what a decarbonised smart local energy system could look like and the potential of zero carbon hydrogen alongside renewable electricity. Central to the project is a commitment to engage with the local community and industry, providing insight and opportunities for economic growth.

The project is delivering a Front End Engineering Design (FEED) study, laying the foundations for what could be the first of many Smart Local Energy Systems. Due to be completed in spring 2022, the project has begun demonstrating the practical application of hydrogen technology including a world-first hydrogen hybrid heating system, a green hydrogen electrolyser and refueller, and consumer trials of hydrogen fuel cell vehicles with midWales pioneering green automotive company Riversimple.

Accelerated decarbonisation at scale

Recognising existing industry’s importance and symbiosis with emerging renewable developments is the key to ensuring UK energy resilience and a just transition towards a net zero future.

LNG is transported from Milford Haven to the rest of the UK via high capacity gas pipelines.

Green Industries Wales PORTS

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Pembrokeshire’s vision and commitment to play a dynamic role in delivering clean maritime growth, and be a vital part of the UK and Wales’clean energy revolution, is clear and bold. And it is a vision that is being realised.

Earlier this year RWE launched its Pembroke Net Zero Centre to maximise the potential of hydrogen, floating offshore wind and carbon capture to help decarbonise industry in Wales. It recognises Pembrokeshire’s unique credentials to become a SuperPlace for decarbonisation; its proximity to Floating Offshore Wind; land for development of large-scale electrolysers; electricity and gas grid connections and an existing gas-fired power station. As one of Europe’s biggest renewable energy players, this is a major endorsement for Pembrokeshire.

And other big players (including but not limited to Costain; Associated British Ports; Capital Law; CR Plus; Industry Wales; Lanza Tech; Lightsource BP; Progressive Energy; RWE; Shell; Siemens, SIMEC Atlantis Energy; the Port of Milford Haven; Tata Steel; Tarmac; University of South Wales; Valero; Western Power Distribution and Wales & West Utilities) are working together as the South Wales Industrial Cluster (SWIC) to decarbonise industry and achieve net zero whilst creating and protecting jobs in a low carbon economy. For example, the existing energy terminals on the Milford Haven Waterway have the potential to play a significant role in the UK’s hydrogen economy, processing and generating hydrogen for UK and international supply.

The port’s ambition for sustainable growth is an ambition shared. The Port of Milford Haven’s plans are aligned with the UK Government’s Ten Point Plan for a Green Industrial Revolution, and Net Zero Strategy: Build Back Greener objectives announced in October 2021, the Welsh Government’s Plan for Wales and Marine Plan, the Wellbeing of Future Generations (Wales) Act 2015 and Pembrokeshire County Council’s Economic Recovery Plan. Collaboration is key. The road ahead is challenging, and as projects like Pembroke Dock Marine, MH:EK and SWIC are demonstrating, working together is critical to realise the opportunity ahead for the sake of future generations.

Valero Pembroke Refinery on the Milford Haven Waterway: Recognising existing industry’s importance and symbiosis with emerging renewable developments is key.