CELTIC FREEPORT AT MILFORD HAVEN AND PORT TALBOT TO DRIVE UK ECONOMIC GROWTH MISSION

THE CELTIC FREEPORT has been officially launched, bringing significant inward investment to South West Wales and taking a major step towards creating thousands of new jobs, the Welsh Government announced this week.

It also re-affirmed its commitment to £26 million of UK Government investment.

The freeport, covering the ports of Milford Haven and Port Talbot, is set to play a crucial role in the UK’s clean energy future. It spans multiple industries, including clean energy developments, fuel terminals, power generation, heavy engineering, and the steel sector.

Businesses operating within the freeport area will benefit from substantial UK and Welsh Government tax breaks and customs exemptions to encourage investment. The initiative is expected to attract £8.4 billion in private and public investment, generate 11,500 new jobs, and contribute £8.1 billion in economic value (GVA) to the region.

The freeport was launched at an event in Cardiff, attended by Secretary of State for Wales Jo Stevens and Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning.

“Significant step towards a renewable energy superpower”

Jo Stevens, Secretary of State for Wales, said: “This Government has a Plan for Change focused on delivering economic growth and ensuring the UK becomes a renewable energy superpower. This announcement is a significant step towards achieving those ambitions.

“The Celtic Freeport will create up to 11,500 well-paid, highly skilled jobs and could leverage up to £8.4 billion in investment.

“The UK Government has committed £26 million to the freeport, alongside significant incentives from both the UK and Welsh Governments. I am very pleased to see two governments working in partnership to deliver for the people of Wales.”*

“A vital cog in the UK’s low-carbon economy”

Rebecca Evans, Welsh Government Cabinet Secretary for Economy, Energy and Planning, said: “The official opening of the Celtic Freeport sends another clear signal to the world that the industrial heartlands of South Wales are a vital cog in the UK’s low-carbon economy.

“We are already seeing real enthusiasm across the region and beyond to capitalise on the skills and job opportunities that this new industrial age will provide. The Welsh Government will be at Celtic’s side, offering major tax reliefs to attract business investment.

“The Freeport will also be able to use future non-domestic rates revenues to fund vital infrastructure and skills projects, benefiting Port Talbot and Milford Haven for generations to come.”

Freeport projects already making progress

Following the successful launch, Luciana Ciubotariu, CEO of Celtic Freeport, highlighted the rapid progress of key projects: “The Celtic Freeport is making significant strides forward with milestones such as planning consents for LanzaTech’s sustainable aviation fuel production plants, RWE’s Pembroke Green Hydrogen plant, and the launch of the Milford Haven CO₂ Project.

“Other major developments include H2 Energy and Trafigura’s West Wales Hydrogen project securing a hydrogen CfD, Haush establishing a green energy HQ, and the approval of wind turbine developments to expand Dragon Energy’s Renewables Park.

“These initiatives, alongside investments in battery energy storage by RWE and port infrastructure at Port Talbot, are accelerating South Wales’ reindustrialisation and driving a decarbonised economy rich in evolving and new industries.”

A cleaner, greener future

The Celtic Freeport aims to establish a green investment and innovation corridor, driving inward investment, skills development, and national decarbonisation. Key focus areas include:

• Floating offshore wind (FLOW) in the Celtic Sea
• Hydrogen economy and sustainable fuels
• Carbon capture and storage
• Cleaner steel production
• Low-carbon logistics

As one of 12 Freeports across the UK, the Celtic Freeport will play a pivotal role in the UK Government’s Growth Mission, supporting the transition to green industries and creating thousands of high-quality jobs for local communities.

(Cover image: Secretary of State for Wales Jo Stevens – Speaking at the Celtic Freeport event in Cardiff)

LEADING supermarket chain Tesco is collaborating with the Welsh Government and over 100 food and drink companies to drive carbon reduction while supporting industry growth.

The initiative, involving major Welsh suppliers such as Authentic Curry Company, Penderyn, Edwards – The Welsh Butcher, and Ellis Eggs, aims to help businesses measure and lower their carbon footprint, responding to growing consumer and financial pressures.

The pilot programme operates in three key phases:

• Establishing protocols – Tailoring carbon measurement methods for Welsh businesses.
• Setting baselines – Using carbon capture tools to establish emission benchmarks.
• Creating reduction plans – Developing industry-specific strategies to cut emissions.

Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies, hailed the collaboration as a major step forward. He said: “This pilot programme is a significant step for Wales’s food and drink industry. Tesco’s support is invaluable in equipping businesses with the tools to measure and reduce their carbon footprint, enhancing competitiveness and sustainability.”

Tesco, which has pledged to achieve net zero across its value chain by 2050, has already cut its operational emissions by 61% since 2015.

Enfys Fox, Relationship Manager for Local Sourcing at Tesco, said: “Tesco is committed to building a more sustainable food system, and we’re proud to work alongside the Welsh Government in this transformative pilot programme.

“We recognise the role that industry has to play in reducing carbon emissions. By supporting our suppliers in baselining their impact and providing actionable strategies, we are taking important steps to address the climate crisis and ensure a sustainable future for the industry.”

Simon James, Managing Director of Edwards – The Welsh Butcher, highlighted the business benefits: “Participating in this pilot helps us baseline our emissions and develop strategies to reduce them. Sustainable practices are essential for winning future supply contracts.”

The initiative also strengthens businesses’ ability to secure financial backing, as lenders increasingly seek proof of carbon measurement and reduction efforts. The pilot provides structured frameworks for tracking and reporting emissions, giving companies verified data to demonstrate their sustainability commitments.

For more information, visit gov.wales/foodanddrinkwales.

SALES activity in the Welsh housing market is expected to edge upwards over the coming months, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, despite a fall in new buyer enquiries in February.

A net balance of 15% of surveyors in Wales expect sales to rise over the next three months, the fourth consecutive month that this balance has been on an upward trajectory. Anecdotally, the expectation that interest rates will be cut further is a factor in this thinking.

When it comes to demand though, a net balance of -57% of surveyors in Wales noted a fall in new buyer enquiries through the month of February, the lowest this balance has been since August 2023.

Supply levels were also reported to have fallen last month. A net balance of -27% of Welsh respondents noted a decline in new instructions to sell.

Unsurprisingly, with both demand and supply falling, a net balance of -23% of Welsh surveyors said that sales had fallen through February. This is the lowest this balance has been since late 2023.

On the pricing side, a net balance of 6% of survey respondents said that prices have risen over the past three months. Surveyors in Wales though remain cautious on the pricing outlook as a net balance of -29% of respondents anticipating a fall in prices over the next three months.

However, respondents are more positive on the 12-month outlook, with the net balance of surveyors in Wales expecting both prices and sales to increase over the year ahead (net balances of 72% and 57% respectively).

Regarding the lettings market, a net balance of 29% of respondents in Wales report a rise in tenant demand, whilst a net balance of 29% of surveyors reported a rise in landlord instructions. Consequentially, Welsh surveyors anticipate that rents will fall flat over the next three months. 

Commenting on the sales market, Anthony Filice, FRICS of Kelvin Francis Ltd., in Cardiff said: “There is an increased number of properties coming onto the market, giving buyers confidence to make offers and view more. Vendors who are slow realising this change, still pushing for higher prices, reductions and longer sale times follow. Lower mortgage rates and landlords selling are helping first time buyers.”

Discussing the lettings market, David James, FRICS of James Dean in Brecon noted that there is still a shortage of properties to let.

Commenting on the UK picture, Simon Rubinson, RICS Chief Economist, said:

“The UK housing market appears to be losing some momentum as the expiry of the temporary increase in stamp duty thresholds approaches. Some concerns are also being expressed by respondents about the re-emergence of inflationary pressures and the more uncertain geopolitical environment. That said, looking beyond the next few months, sales activity is seen as likely to resume an upward trend with prices also moving higher.

“A key support for the market continues to be the increased flow of existing stock becoming available, giving buyers a greater choice of options. However, leading indicators around new build remain subdued for now, highlighting the significance of the Planning and Infrastructure Bill introduced to Parliament this week.

“Meanwhile, despite a flatter trend in demand for private rental properties, the key RICS metric capturing rental expectations is still pointing to further increases demonstrating that the challenge around supply spans all tenures.”