The transition to a greener economy is gathering momentum, and at the Port of Milford Haven, we are at the heart of some of the most exciting developments in renewable energy.
Floating offshore wind in the Celtic Sea is a game changer, not just for Wales but for the wider UK economy. It has the potential to drive industrial growth, attract significant investment, and create high-value jobs across the supply chain.
Alongside this, innovations in carbon capture and storage (CCS) are set to play a crucial role in reducing emissions and making net zero a reality.
There is a significant opportunity for Wales to lead in this space. We already have world-class assets that position us well for a prosperous circular economy. Tata Steel’s move towards greener steel production using electric arc furnace technology is a prime example. This steel could be used in the floating wind structures deployed in the Celtic Sea, which in turn generate renewable electricity and green hydrogen – creating a fully integrated, low-carbon industrial ecosystem. It is an ambitious vision, but it is entirely achievable with the right commitment.
Alongside floating wind, we need to ensure a secure and sustainable energy mix. The journey to net zero will not happen overnight, and hydrocarbons will remain an essential part of the equation for some time. The high-performing Valero refinery on our waterway will continue to play a vital role in providing raw materials for industry and ensuring stability during this decarbonisation journey. But to truly move the needle on decarbonisation, carbon capture will need to be a key part of the solution. Capturing carbon emissions at source and storing them safely in exhausted gas fields presents a huge opportunity to make meaningful emissions reductions while keeping critical industries competitive.
However, there is a challenge. The gigawatt demand from the Celtic Sea needs to be higher if we are to secure the long-term investment required to build the necessary supply chain here in Wales. The current allocation of four and a half gigawatts through the Crown Estate is an important step, but it is not enough on its own to give industry the confidence to commit billions of pounds into local facilities.
The message from investors is clear: there is no shortage of capital, and there is a strong willingness to establish a supply chain in Wales. What is needed is certainty. A long-term, investable timescale of 25 years or more is what will unlock the full economic potential of these industries.
At the Port of Milford Haven, we are ready to invest. We see the potential, and we want to play our part in making it happen. But assurances are needed. Floating offshore wind, green hydrogen, and carbon capture are industries that require scale and long-term commitment. Without that, it becomes difficult to justify the significant infrastructure investment needed to build the foundations of a more sustainable economy.
Now is the time to act. Wales has the resources, the expertise, and the ambition. If we can move at pace and provide the right level of certainty for investors, we can position ourselves as a leader in the industries of the future. But the window of opportunity will not remain open indefinitely. The global race for green energy investment is already well underway, and decisions made now will determine whether Wales is at the forefront or left behind.
