Whether it is delivering Net Zero or the requirement to recover from Covid-19 and take advantage of the new opportunities provided by Brexit, one thing is for sure, as we move towards a greener, stronger, fairer Wales, the Milford Haven Waterway has potential to deliver at pace and at scale against the number one global challenge we’re all facing: climate change.

UK’s Largest Energy Port

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. High capacity oil and gas pipelines and electricity connections transport energy from the Milford Haven Waterway to every part of the UK.

In the first 60 years of its existence, the Port of Milford Haven safely and successfully managed the emergence of two national 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 over the years to create what it is today – the UK’s largest energy port.

The Milford Haven Waterway is home to Valero, one of only six remaining refineries in the UK and one of the largest, most complex refineries in Western Europe; two Liquefied Natural Gas Terminals, South Hook LNG and Dragon LNG; two oil storage facilities, Puma Energy and Valero Pembroke Oil Terminal; and RWE Pembroke Power Station which uses state-of-the-art CCGT technology, making it one of the largest and most efficient plants of its kind in Europe. Together, the Port and these energy facilities support more than 5,000 Welsh jobs and provide £400m of Gross Value Added worth to the region.

Today, this ‘energy capital’ is gearing up for a third revolution – low carbon energy. Plans to add more green sources of energy and decarbonise the existing mix of heat, power and transport fuels delivered through the Port will support aims set out in Wales’ Net Zero Plans.

The Port of Milford Haven has committed to significant investment over the next five years to support and grow its energy cluster as we transition together to a decarbonised future.

Floating Offshore Wind (FLOW)

The Milford Haven Waterway is ready to unlock the full potential of the marine energy and floating offshore wind (FLOW) opportunities in the Celtic Sea. Its close proximity to the Celtic Sea FLOW sites, its deep-water port, existing, high capacity oil and gas pipelines and electricity connections, its extensive energy expertise plus the growing cluster of world-leading marine renewables companies calling the Haven their home will enable Celtic Sea operations to be supported and serviced from here.

But key to maximising the economic benefit offered by the Celtic Sea, 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 City Bay Deal programme signed off by the UK and Welsh Governments.

Pembroke Dock Marine – Wales' Clean Energy Centre
Pembroke Port
The Pembroke Dock Marine Project is unlocking opportunities across the region

The Port of Milford Haven is moving forward with its collaborative City Deal-backed Pembroke Dock Marine project to create a world-class base for marine renewable energy such as offshore floating wind, wave, and tidal generation.
Pembroke Dock Marine (which is funded by the Swansea Bay City Deal, the European Regional Development Fund through the Welsh Government and private investment) will play a key role in supporting Wales’ transition to Net Zero and help drive up Welsh content in the supply chains for the offshore power generation from the Celtic Sea.

This collaborative platform has already attracted companies from across the globe who are spearheading new research, development, and manufacturing in marine energy power generation, with an appetite to do much more. The Offshore Renewable Energy Catapult, the UK’s leading technology, innovation and research centre for renewable offshore energy, has also demonstrated its confidence in the area’s potential with the development of a multi-million pound Marine Energy Engineering Centre of Excellence based at Pembroke Dock.

However, there is enormous potential for much larger-scale development on the Milford Haven Waterway associated with renewable energy. Building upon its internationally renowned marine and terminal infrastructure assets, natural capital and skills base, and through meaningful collaboration across private and public sectors, it is conceivable that the Milford Haven Waterway can make a substantial contribution to securing the country’s economic recovery and to tackling the climate crisis.

Hydrogen: Decarbonisation & Distribution at Scale

No single clean energy development is of more significance than the Milford Haven Waterway’s potential to lead in the production and distribution at scale of hydrogen.

To achieve the 2050 net zero targets set by the UK and Welsh governments 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.

Hydrogen is a piece of the renewable energy puzzle that we need in order to complete the virtuous circle in energy terms. As producers and storers of hydrogen, the Milford Haven Waterway would be able to decarbonise its energy intensive industries, making them more efficient and allowing them to continue operating, investing and, importantly, employing Welsh workers long into the future. 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.

Ground-breaking hydrogen projects are already establishing themselves on the Milford Haven Waterway and receiving international attention.

Milford Haven : Energy Kingdom
Exploring the use of Zero Carbon Hydrogen for future energy needs across buildings, industry and transport

Milford Haven Energy Kingdom

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 mid-Wales pioneering green automotive company Riversimple.

Pembroke Net Zero Centre
Looking at the deployment of state-of-the-art technologies to help decarbonise South Wales

Pembroke Net Zero Centre

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.

South Wales Industrial Cluster

The Port of Milford Haven is participating in the South Wales Industrial Cluster (SWIC), one of six major Industrial Clusters in the UK looking at how we can decarbonise industry and achieve net zero whilst creating and protecting jobs in a low carbon economy. SWIC brings together various sectors in South Wales that are crucial for decarbonisation and the development of a hydrogen economy. The Cluster is investigating the extent to which hydrogen can be produced and used in South Wales - and what infrastructure would be required for this. 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, generating, using and distributing hydrogen for UK and international supply.

Retaining Wealth and Ownership in Wales

Transitioning to a greener economy offers significant regeneration benefits which will help to level up this coastal region of Wales through the creation of fresh high-quality employment and careers for future generations: 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.

Working Together

As a Trust Port we continuously re-invest our profits in infrastructure, equipment and services for the benefit of today’s and future generations. Our vision is for the Milford Haven Waterway to play a significant role in delivering clean maritime growth, industrial decarbonisation and Net Zero, and to enable a cleaner, greener future for our communities.

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.