An ambitious project to transform the port of Port Talbot into a major hub for Floating Offshore Wind (FLOW) and green energy development is one step closer to securing a share of up to £160 million of UK Government funding.
The UK Government has agreed to take forward the Future Port Talbot project and the Port of Cromarty Firth to undergo due diligence as part of the next stage of its Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS).
FLOWMIS – launched as part of the Government’s ‘Powering Up Britain’ plans in March 2023 – hopes to secure the UK’s leadership in FLOW technology, by providing funding to support private investment into port infrastructure projects with the potential to support the scale of the pipeline.
The scheme will fund the basic infrastructure necessary to support the integration and assembly of wind turbines – for example, ensuring port infrastructure is constructed, replaced or upgraded (such as the building of quays) to accommodate large components such as towers and blades, as well as steel and concrete foundations and mooring cables required for floating offshore wind.
The funding could also go towards the dredging of the seabed to make it deeper.
Associated British Ports (ABP), the UK’s leading port operator, welcomed the decision to advance the Port Talbot project.
The FLOWMIS award, alongside significant ABP investment of more than £500 million, will begin to unlock a projected £1 billion of investment in Port Talbot and the surrounding area. This will develop a green economic hub supporting and creating nearly 10,000 jobs in South Wales and across the wider UK supply chain.
Today’s decision comes at a crucial time for Port Talbot and South Wales more broadly. The funding announced will help secure the region’s future as a hub of next-generation UK industry, providing thousands of jobs in the green economy right across the supply chain.
ABP is grateful that its bid was also supported by local members of both UK and Welsh Parliaments, Neath Port Talbot Council, the Welsh Government and by local, national and international businesses in the floating offshore wind supply chain. We look forwarding to working closely with all stakeholders as we progress into the due diligence phase of the FLOWMIS process and work to deliver our plans at pace.
Henrik L. Pedersen, Chief Executive Officer of Associated British Ports
The due diligence process will include a subsidy control assessment by the Competition and Markets Authority – this assesses whether proposals for grant funding are compliant with the subsidy control rules, laid out in the Subsidy Control Act 2022.
Offers of funding for the successful projects are expected to be made later in the year.
The port of Port Talbot is part of The Celtic Freeport, alongside the Port of Milford Haven. The Celtic Freeport described the announcement as a “deeply disappointing blow for Pembroke Dock and the whole of the Milford Haven Waterway.”
The creation of major port infrastructure to support the roll-out of floating offshore wind (FLOW) is central to the Celtic Freeport’s vision.
Today’s news is mixed across the Celtic Freeport members. It is fantastic news for Port Talbot and a deeply disappointing blow for Pembroke Dock and the whole of the Milord Haven Waterway.
We will continue to support both ports and look for synergies as plans progress to maximise investment, jobs and prosperity across the Celtic Freeport area from this nascent industry
Spokesperson, Celtic Freeport
Today’s decision by the UK Government to reject our bid to create a new green energy terminal in Pembroke Dock is a deeply disappointing blow for the communities around the Milford Haven Waterway.
The Floating Offshore Wind Manufacturing Investment Scheme was aimed at supporting critical port infrastructure that will enable the delivery of 5GW of floating wind by 2030; it was to do this by:
– securing the additional capacity necessary to scale up and accelerate floating offshore wind deployment,
– increasing capability in the UK floating offshore wind supply chain, and
– delivering industrial growth and associated regional economic and social benefits.As the closest port to the Celtic Sea development sites, home to a heavy engineering skills-base, and with strong support from FLOW developers, we felt we had a powerful case. Our development ambition at Criterion Quay sought to provide a delivery platform for the 400MW test and demonstration phase and a fit-for-purpose site for integration, and operations and maintenance activities in support of the commercial-scale phase over the coming decades.
As an organisation, we remain committed to the creation of a green cyclical economy. Over the coming weeks we will take stock of how we can fulfil this ambition and level up this part of South Wales.
Spokesperson, Port of Milford Haven
ABP say the Future Port Talbot project would see the port transformed into a major hub for the manufacturing, assembly, and integration of Floating Offshore Wind (FLOW) components for projects in the Celtic Sea, representing a major growth opportunity for the UK, with the prospect of creating a world-class manufacturing and supply chain hub in Port Talbot.
Port Talbot has the scale and technical capabilities to fully unlock the opportunity of Floating Offshore Wind in the Celtic Sea.
It will also be able to act as a ‘hub’ for a wider network of ports across South Wales and the South West.
Floating offshore wind is crucial to the UK’s future energy plans and its potential development off the coast of South Wales is fantastic news as we look to create jobs and growth in this sector.
It is also welcome news for the Port Talbot area where the UK Government is investing in Tata Steel’s transition to greener steelmaking. As well as ensuring thousands of steelmaking jobs will remain in Wales, we want to create even more opportunities for workers affected.
The Celtic Freeport development promises to create 16,000 jobs and FLOWMIS moving a step closer shows we are backing South Wales to be at the forefront of the industries of the future.
Welsh Secretary David TC Davies
The UK is already a world leader in floating offshore wind, with one of the largest amounts of operational capacity anywhere in the world at 80 MW.
The 50 MW Kincardine project is one of the largest floating windfarms in the world, and the 30 MW Hywind Scotland project was the world’s first floating windfarm.
The UK also has the largest floating wind pipeline in the world, with over 25 GW already agreed, including through the ScotWind and Innovation and Targeted Oil & Gas (INTOG) leasing rounds run by Crown Estate Scotland.
In addition, The Crown Estate are moving forward with their plans to launch Offshore Wind Leasing Round 5, making available areas of seabed capable of supporting up to a further 4.5 GW of floating wind capacity in the Celtic Sea.
The Government is working with The Crown Estate to bring forward additional floating wind in the Celtic Sea through the 2030s, which could see an extra 12GW of generation deployed.
The development of the Celtic Sea and the Scottish marine area will put the UK in a strong position to support floating offshore wind deployment, delivering on our ambitions for up to 5GW by 2030 and greater deployment beyond.
FLOWMIS will ensure we continue to be at the forefront of this new technology and today’s progress signals our continued efforts across the renewables sector to support jobs, bring down bills in the long-term and provide cheaper, more secure energy for Britain.We are world leaders in offshore wind and our ambitions for floating offshore wind are no different, with the UK already home to the world’s first floating wind farm and largest floating offshore wind pipeline.
Minister for Nuclear and Renewables Andrew Bowie said: