Port Talbot, Wales, and the Port of Cromarty Firth, Scotland, have been chosen by the UK government to support its offshore floating wind developments via the Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS).
The Department for Energy Security and Net Zero (DESNZ) will consider the funding application further before any final decisions are taken later this year.
FLOWMIS was established to distribute the funding to support critical port infrastructure enabling floating offshore wind delivery. This could see further developments in regions across England, Scotland and Wales. Wales, in particular, could see further initiatives given its proximity to the Celtic Sea, an area set to be a test bed for floating offshore wind.
According to the government, up to £160 million in grant funding for certain floating offshore wind sector investments are available via FLOWMIS.
Commenting on the FLOWMIS scheme, Andrew Bowie, the UK minister for nuclear and renewables, said: “FLOWMIS will ensure we continue to be at the forefront of this new technology, and this 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.”
Port Talbot’s £1 billion investment plan
Port Talbot, owned by Associated British Ports (ABP), is one of the two ports added to the Primary List phase of FLOWMIS.
ABP’s Future Port Talbot project would transform the port into a major hub for manufacturing, assembly, and integrating Floating Offshore Wind (FLOW) components for projects in the Celtic Sea.
This represents a major growth opportunity for the UK, with the prospect of creating a “world-class manufacturing and supply chain hub” in Port Talbot as well as providing opportunities for broader green energy and industrial activity, which could serve as a catalyst for wider economic regeneration in the South Wales industrial cluster.
ABP said in a statement that it now wants to work at pace with governments in London and Cardiff, as well as other organisations involved in the process, to take forward the Port Talbot development and incorporate the latest knowledge and experience.
Henrik Pedersen, CEO of Associated British Ports, said: “The FLOWMIS award, alongside significant ABP investment of more than £500 million, will begin to unlock a projected £1 billion 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 the wider UK supply chain.
“We look forward 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.”
It is worth noting that, in November 2022, Gwynt Glas Offshore Wind Farm signed a memorandum of understanding (MoU) with Associated British Ports and the Port of Milford Haven to prepare the region for floating wind farms in the Celtic Sea.
Information and industry knowledge will be shared via the MoU to investigate potential opportunities for the project’s manufacturing, assembly, load-out, and servicing. This will be across the key South Wales ports of Port Talbot and Milford Haven.
Scotland’s Port of Cromarty Firth’s renewable expansion plan
Alongside Port Talbot, Scotland’s Port of Cromarty Firth has also been added to the Primary List phase.
Over £50 million has been earmarked for the port’s forthcoming Phase 5 expansion, which will expand its facilities and infrastructure for the North of Scotland’s renewables sector.
Much like Port Talbot, it is hoped that the Port of Cromarty Firth can be developed into a “leading renewable energy hub” in the UK and bolster efforts to expand offshore floating wind developments in Scotland.
“The offshore wind industry has made it clear that Port of Cromarty Firth is critical to the forthcoming large-scale expansion of the offshore wind industry, which is needed to deliver national energy security and net zero commitments,” said Bob Buskie, chief executive of the Port of Cromarty Firth.
“The announcement will provide certainty for offshore wind developers that the infrastructure they need will be ready in time to deliver their projects and will hopefully now unlock the other elements of the financial plan necessary to meet the government’s due diligence requirements so that construction can begin.”
