Port Talbot secures £64m backing as questions grow over Pembrokeshire’s share of offshore wind boom

MILFORD HAVEN’S role in Wales’ clean energy future is under intense scrutiny after a major government-backed wind project placed Port Talbot firmly at the centre of the Celtic Sea boom.

The UK Government has confirmed up to £64 million in funding to transform Port Talbot into the UK’s first dedicated floating offshore wind hub—unlocking up to 4.5GW of capacity and thousands of jobs.

But as the scale of the investment becomes clear, a critical question is now being asked across Pembrokeshire: what does Milford Haven actually get?

Freeport partnership — but unequal detail

The UK Government has made clear the scale of its backing for Port Talbot, describing it as central to its “clean power mission.” The £64 million grant will fund design and engineering work to develop a specialist floating wind port, expected to unlock at least 4.5GW of projects in the Celtic Sea—enough to power around 6.5 million homes. Officials say the scheme could support up to 5,000 jobs and attract more than £500 million in private investment.

Energy Secretary Ed Miliband said: “With its deep waters and strong winds, we are supporting Wales to storm ahead in floating offshore wind – a pioneering industry that will support thousands of good jobs, drive growth across the country and unlock the next generation of clean, homegrown power.”

Both Port Talbot and Milford Haven form part of the Celtic Freeport, a flagship project intended to drive growth across South West Wales.

Yet while Port Talbot has secured clear backing as the main construction and assembly hub, there has been no detailed explanation of Milford Haven’s role.

That lack of clarity is raising concern locally.

Milford Haven is one of the UK’s most strategically important energy ports, handling a significant share of the nation’s gas imports and boasting deep-water access ideal for large-scale offshore operations.

For many, it appeared an obvious candidate to play a central role in floating wind.

WHY THIS MATTERS

• Floating wind in the Celtic Sea could power millions of homes
• More than £500 million in private investment expected
• Up to 5,000 jobs linked to port and supply chain activity
• Wales could attract tens of billions in long-term renewable investment
• Early decisions will determine where those jobs are based

‘Value will go elsewhere’

The announcement has also triggered political criticism over how much economic benefit Wales will actually retain.

The Welsh Liberal Democrats have warned that key components for the turbines are likely to be manufactured abroad, with only assembly taking place in Port Talbot.

Welsh Liberal Democrat MP David Chadwick said: “Any job creation is a positive step for Port Talbot, but Labour need to be honest about what this actually contains.

“These turbines are set to be built using imported steel and only assembled locally, not manufactured. This means much of the real economic value will still go elsewhere.”

Major projects already linked to Milford Haven

Despite the uncertainty, significant clean energy investment is already being directed into Milford Haven itself.

A £50 million green hydrogen project within the Freeport tax site is set to begin construction this year, producing low-carbon hydrogen using renewable electricity—much of it expected to come from offshore wind.

UK Energy Minister Michael Shanks said the investment was “crucial in de-carbonising industry, driving investment, boosting our energy security and creating hundreds of jobs in our industrial heartlands.”

Welsh Secretary Jo Stevens added: “This is a huge milestone… which will create jobs and help grow the Welsh economy.”

Meanwhile, a major 1.5GW floating wind project in the Celtic Sea has already secured an Agreement for Lease, with Welsh Government backing.

Economy Secretary Rebecca Evans said: “These projects will create thousands of skilled jobs and help secure our energy independence for generations to come.”

Labour promises jobs — but few specifics

On Friday (Mar 27), Eluned Morgan is set to visit the Port of Milford Haven, where she will pledge to bring more jobs to West Wales through clean energy investment.

She is expected to say the region has “a wealth of opportunity” in the sector and promise that rural communities will benefit from the transition.

However, no specific commitments have yet been made about what proportion of offshore wind activity will be based in Pembrokeshire.

What could Milford Haven secure?

Industry expectations suggest Milford Haven could play a key role in:

• Servicing and maintenance vessels
• Crew transfer operations
• Storage and logistics for turbine components
• Long-term operations bases for offshore wind farms

The Herald understands that discussions around Milford Haven’s role in operations and maintenance have been ongoing for several years, but no formal allocation of work has yet been confirmed.

In contrast, Port Talbot has already secured early-stage government backing and a clearly defined role in construction and assembly.

Opportunity — but no guarantees

Floating offshore wind development in the Celtic Sea is expected to accelerate later this decade, with the first large-scale projects likely to come online in the early 2030s.

Supporters argue the expansion of offshore wind is key to reducing long-term energy bills and protecting the UK from volatile global fossil fuel markets.

Milford Haven’s location, infrastructure, and experience in handling large-scale energy logistics place it in a strong position.

But without firm agreements, there is no certainty over how much work will ultimately come to the area.

With billions of pounds expected to flow into the Celtic Sea over the next decade, early decisions could shape the economic balance of the region for a generation.

A defining moment for the Haven

For Milford Haven, the stakes could hardly be higher.

The port has long been central to the UK’s fossil fuel economy.

Floating offshore wind represents the next chapter—but whether Pembrokeshire becomes a key player or a supporting act remains unresolved.

As political parties set out competing visions ahead of the next Senedd election, local leaders are now under pressure to secure clear commitments.

The opportunity is real.
The investment is coming.

The only question now is whether Pembrokeshire secures its share—or watches it land elsewhere.

Lib Dems warn jobs boost may be limited as turbines set to be built abroad

MILFORD HAVEN’S role in Wales’ flagship floating wind project remains unclear after new criticism emerged over the Port Talbot investment.

The UK Government has announced £64 million to turn Port Talbot into the UK’s first floating offshore wind hub in the Celtic Sea, a move expected to support thousands of jobs.

However, fresh political concerns have now been raised over how much of that economic benefit will actually stay in Wales.

The Welsh Liberal Democrats have warned that the project risks becoming an assembly operation rather than a full industrial supply chain.

David Chadwick MP said: “Any job creation is a positive step for Port Talbot, but Labour need to be honest about what this actually contains.

“These turbines are set to be built using imported steel and only assembled locally, not manufactured. This means much of the real economic value will still go elsewhere.”

Milford Haven still waiting for clarity

The announcement has also left unanswered questions about Milford Haven’s role within the Celtic Freeport.

While Port Talbot has secured clear backing as the main construction hub, there has been no detailed explanation of what activity will be based in Pembrokeshire.

That lack of detail is significant.

Milford Haven already has deep-water access, established energy infrastructure, and a long-standing role in UK energy security—factors which many expected would place it at the centre of offshore wind operations in the Celtic Sea.

Jobs — but where is the value?

The UK Government says the project could unlock over £500 million in private investment and support up to 5,000 jobs.

But critics argue that if key components are manufactured overseas, Wales risks missing out on the higher-value parts of the supply chain.

That raises a broader concern for Pembrokeshire: whether Milford Haven will secure meaningful long-term work, such as maintenance, servicing, and logistics—or be left with only limited involvement.

Energy transition moment

For Milford Haven, the stakes are high.

The port has long been a cornerstone of Britain’s fossil fuel infrastructure.

Floating offshore wind represents the next phase of that story—but exactly how big a role the Haven will play is still to be defined.

With billions in investment expected in the Celtic Sea, local leaders are now likely to push for clearer commitments to ensure Pembrokeshire is not left behind in the transition.

Sector partnership targets 100% renewable electricity by 2035

A NEW deal has been launched to help Wales meet its renewable energy targets while ensuring greater benefits for local communities.

The Renewable Energy Sector Deal will see the Welsh Government and industry work in strategic partnership to unlock the full economic potential of Wales’ renewable energy future.

The announcement coincides with the publication of the latest Energy Generation and Energy Use in Wales report, which shows renewable electricity generation in 2024 was equivalent to 54% of Wales’ electricity consumption.

The Welsh Government has set a target for renewable electricity to meet 70% of demand by 2030 and 100% by 2035. It also aims to deliver at least 1.5 gigawatts of locally owned renewable energy capacity by 2035.

The Sector Deal is intended to accelerate deployment across onshore and offshore wind, solar, marine and hydro projects. It will also focus on strengthening supply chains, developing skills, and ensuring communities across Wales benefit directly from renewable energy developments.

Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, is launching the deal during a visit to the Morlais tidal energy project on Anglesey.

The Morlais scheme, owned and managed by social enterprise Menter Môn, is set to become the largest consented tidal energy project in Europe. The Welsh Government holds an £8 million equity stake in the project.

Rebecca Evans said: “Our ambition is to become a world leader in renewable energy, creating jobs and green growth to make families in Wales more prosperous and help with the cost of living.

“The current conflict in the Middle East has further highlighted the importance of energy independence. Our Renewable Energy Sector Deal will provide a strong foundation for future delivery, benefiting our economy, environment and energy security.

“The Morlais project shows how sustained partnership can unlock Wales’ natural energy resources and turn them into lasting economic opportunities for local communities and businesses.

“The latest energy report shows we are making progress towards our targets. Combined with the record 20 major renewable projects, totalling 1,400MW, backed in the most recent UK Government Contracts for Difference auction, it is clear we are building a more resilient, renewable-powered future.”

Dafydd Gruffydd, Managing Director of Menter Môn, added: “The Renewable Energy Sector Deal is an important step in accelerating growth in Wales and across the UK.

“It recognises the role marine energy schemes like Morlais can play in strengthening energy security, creating high-quality jobs and delivering long-term economic benefits for communities such as Anglesey.”

The Sector Deal was co-produced by a task and finish group made up of developers and community organisations.

Responding to the Welsh Government’s Renewable Energy Sector Deal, Welsh Liberal Democrat Leader Jane Dodds MS said: “This so-called ‘sector deal’ raises more questions than it answers.

“There is no clear plan for how we build the workforce needed, with no detail on training, skills or apprenticeships to deliver the green jobs Wales needs.

“Ministers also promise benefits for communities, but without minimum standards or enforcement, there is no guarantee local people will see the rewards.

“Most concerning is the lack of focus on energy bills. Families are struggling, yet there is no clear explanation of how this will bring down costs. Renewable energy should mean cheaper bills, but as long as electricity prices are tied to gas, households won’t feel the benefit, something Labour in Westminster has failed to fix.”