Securing Wales' energy future
Tom Sawyer, CEO
| Port of Milford Haven
Wales has a pivotal role in securing UK energy supply through the development in hydrogen, carbon capture, alternative fuels and renewables to drive economic renewal
Securing the UK’s energy future demands a global outlook delivered through local implementation.
Recent months have seen a flurry of positive UK government announcements. These include support for the continued roll-out of carbon capture (CCS), long-term funding for floating offshore wind (FLOW) and hydrogen production in the Budget, and progress across the board on alternative fuels.
While this momentum is encouraging, success in the global race for investment in these transformative technologies demands action. Wales – spearheaded by the businesses within the Milford Haven Energy Cluster – is poised to play a central role.
The year ahead will be crucial as we strive to galvanise efforts to strengthen national energy security while fostering a circular green economy. The power station, refinery, liquefied natural gas, and fuel terminals along the Milford Waterway currently support a fifth of the UK’s energy consumption and are pivotal to the transition towards a decarbonised system.
Key projects underway include multiple hydrogen and sustainable fuel production plants and the Milford Haven CO₂ Project. This initiative is central to developing Wales’ CCS capability while underpinning a growing hydrogen economy. Meanwhile, a growing renewables terminal is set to support the roll-out of FLOW in the Celtic Sea.
Delivering this vision depends on a dual focus: streamlining regulatory processes and addressing the limiting factors that hinder the development of Wales’ unique strengths. This will ensure that the existing industrial cluster evolves and grows to meet future needs.
If we are to create a complementary and interconnected energy system – one where renewable electricity from FLOW powers green hydrogen production, CCS supports industrial decarbonisation, and blue hydrogen and synthetic fuels contribute to the mix – we must build on a strong foundation.
Realising Wales’ energy ambitions requires a concerted effort to tackle regulatory and planning obstacles. Whether building a new renewables terminal or creating network solutions for heat and gas optimisation, the current consenting processes are too slow to meet the urgency of energy security and decarbonisation goals. The Milford Haven Energy Cluster needs a planning framework bolstered by adequate resources across all relevant agencies to accelerate project delivery.
However, simplifying processes alone is not enough. Enhanced capacity – through infrastructure upgrades, workforce development and expanded grid connections – is equally vital. For example, scaling FLOW requires significant port improvements to create assembly hubs, while hydrogen and CCS projects, such as the Milford Haven CO₂ Project, need investment in pipelines, storage and associated facilities. Addressing these gaps ensures that streamlined planning translates into real-world progress.
To ensure Wales stays on course in this global race, our 2025 priorities are clear:
- increased planning and consenting resources across agencies and government
- progress on Track 2 CCS, including confirmation that CO₂ shipping will be an integral part of the programme
- a long-term pipeline for FLOW development in the Celtic Sea, starting with progress on the stepping stone FLOW projects
- movement on seabed option fees to foster long-term FLOW supply chain growth
- continued financial support for hydrogen and sustainable fuel production facilities
The UK government has identified the winners in this low-carbon technology race. With these interventions, the country can maintain its leadership in the global race to decarbonise our energy system.
The hydrogen and sustainable fuel production plants, FLOW and the Milford Haven CO₂ Project under development offer more than just decarbonisation. They have the potential to create a resilient economy, support local communities and secure Wales’ position as a strategic energy hub of the future.
Port of Milford Haven is part of the Milford Haven Energy Cluster.
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