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Port of Milford Haven: Repositioning Energy Assets for the Hydrogen Economy

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In this first podcast series host Carwyn Jones discusses some of the opportunities for the Port of Milford Haven with guests Steve Edwards, Commercial Director, Port of Milford Haven, Steve Keating, SD & Energy Manager, Pembrokeshire County Council and Chris Williams, Head of Industrial Decarbonisation, Industry Wales (Supporting the development of the South Wales Industrial Cluster or SWIC).

In this episode the discussion centres on repositioning energy assets for the hydrogen economy.

Pembrokeshire is home to a vibrant energy cluster.

Within the Waterway are two LNG terminals (South Hook LNG and Dragon LNG) and one of Europe’s largest oil refineries (Valero) supplying a third of the UK’s gas and a large proportion of our transport fuel. RWE’s Combined-Cycle Gas Turbine plant, which is one of Europe’s largest and most efficient plant of its kind, is powering around 4 million homes.

There are significant wave, tide and FLOW (floating offshore wind) opportunities with an estimated 15 gigawatts from tidal, 23 gigawatts from wave and over 50 gigawatts from FLOW in the Celtic Sea. The Celtic Sea will also be home to the world’s largest floating offshore wind site creating a £682m opportunity. Developers are already engaged locally to explore the opportunities and develop devices.

Pembrokeshire has a world-class reputation for the excellence of its supply chain. Serving the traditional energy sector for over 60 years and cross-applying skills within the new renewables operations. It’s established opportunities for established local businesses with potential for incoming operations.

The energy sector directly supports over 4,000 Pembrokeshire jobs (and 5,000 Welsh jobs), with many more indirectly supported through the supply chain. Offshore Renewable Energy Catapult has identified the potential for floating offshore wind to create 3,000 jobs in Wales and Cornwall over the next 10 years, cross supported by developments such as Pembroke Dock Marine which is expected to create more than 1,800 jobs in the next 15 years.

Further decarbonising this cluster will sustain thousands of jobs in the oil and gas sectors, while creating high skill jobs in new energy sectors.

Where we are going:

Pembrokeshire is the prime location within the UK to establish a clean energy cluster. No other location in the UK has the natural capital, transmission, pipelines, skills-base and global terminal operators in situ to create, use or inject renewable fuels into the energy system at scale.

A new group, the ‘Haven Waterway Future Energy Cluster’ has been established. It brings together the Waterway’s major traditional energy companies with renewables developers and the supply chain to drive forward the delivery of the country’s decarbonisation and industrial strategy agendas.

The group is establishing its vision that will seek to decarbonise existing operations, support the growth of established and growing renewables operations while seeking to find solutions in hydrogen generation, storage and shipping. With existing capacity to generate and use hydrogen, the Waterway is a strong test bed for energy transition.

The group is keen to represent the scale of the opportunity to UK and Welsh Governments and to UK and international industry, reflecting the Waterway’s potential role as an energy exporter, and its potential to boost UK energy resilience.

Existing Projects

Milford Haven Energy Kingdom (MH:EK)

Milford Haven: Energy Kingdom (pembrokeshire.gov.uk)

MH:EK is a two-year £4.5m project (completing in 2022) exploring what a decarbonised smart local energy system could look like for Milford Haven, Pembroke and Pembroke Dock. The project has been looking at the potential of zero carbon hydrogen alongside renewable electricity to meet all of our future energy needs. The team has investigated solar, onshore wind, future offshore wind and biomass developing the business cases for accelerating to a hydrogen economy for energy demand in buildings, transport and industry, and delivering demonstrations through a consumer trial of hydrogen fuel cell vehicles and a hydrogen-ready hybrid heating system (Hydrogen powered cars and heating: £4.5m MH:EK project explores energy systems for a greener future (mhpa.co.uk)

South Wales Industrial Cluster (SWIC)

SWIC | South Wales Industrial Cluster

SWIC is a clustering group of major industrial companies in the region stretching from the Pembrokeshire coast to the Severn Bridge along the M4 corridor that are committed to creating a net zero carbon economy in Wales that supports sustainable jobs and sustainable communities. The partners are working on innovative projects to create a hydrogen economy, increase energy efficiency, and avoid carbon emissions while exploring opportunities for Carbon Capture Usage and Storage and low-carbon power generation.

Pembroke Dock Marine

Pembroke Dock Marine will create a world-class centre of marine energy and excellence centred around the Milford Haven Waterway. This £60m development is funded by the UK Government and Welsh Government through the Swansea Bay City Deal, and through the public and private sectors. It is also part-funded by the European Regional Development Fund through the Welsh Government.

The four elements are:

  • Marine Energy Engineering Centre of Excellence delivered by ORE Catapult providing research, development and demonstration support
  • Pembroke Port developments delivered by the Port of Milford Haven creating spaces that help industry fabricate, launch and maintain devices
  • Marine Energy Test Area (META) delivered by Marine Energy Wales to facilitate device testing through pre-consented test areas
  • Pembrokeshire Demonstration Zone delivered by Celtic Sea Power enabling offshore renewable infrastructure to catalyse the Celtic Sea floating offshore wind and marine energy opportunities
Business News Wales