Photo by Waldemar Brandt

The UK government has announced a grant of up to £64m to develop Port Talbot into the first port in the Celtic Sea specifically designed to support floating offshore wind. The funding will enable Associated British Ports (ABP), the UK’s largest port operator, to complete the essential design and engineering work needed to build the facility, subject to final clearance by the Competition and Markets Authority.

The new port is intended to unlock at least 4.5GW of floating offshore wind capacity, sufficient to power around 6.5 million homes, building on the three projects awarded seabed rights in the Crown Estate’s Celtic Sea leasing round last year. ABP expects the development to support thousands of jobs and unlock over £500m in investment for the town.

Henrik L. Pedersen, CEO of ABP, said: “Today’s visit marks real progress on the shared ambition between ABP and the UK government to secure the infrastructure needed to deliver floating offshore wind at scale. Agreeing terms on government support is a critical step towards further ABP investment at Port Talbot and establishing the port as a cornerstone of the Celtic Sea floating offshore wind industry. This development would drive industrial regeneration, support thousands of skilled jobs and ensure Wales and the UK captures the full economic benefit of this emerging sector.”

Why floating wind, and why the Celtic Sea?

Unlike conventional fixed-bottom turbines, floating offshore wind platforms are anchored in deeper waters – conditions found across much of the Celtic Sea – where wind speeds are stronger and more consistent. The technology allows turbines to be installed far further from shore, opening up areas regarded as having some of the best wind resources in Europe. Port Talbot’s proposed infrastructure, new and strengthened quays, heavy-lift equipment, fabrication zones and large laydown areas, would need to handle next-generation floating platforms at gigawatt scale.

Energy Secretary Ed Miliband said: “From floating offshore wind in Port Talbot to a new generation of small modular reactors at Wylfa – this government is putting Wales at the heart of our clean energy superpower mission. 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.”

Regeneration context

The announcement carries particular weight for Port Talbot, which is navigating significant economic change. Alongside its designation as part of the Celtic Freeport, the town is undergoing a major restructuring at Tata Steel, which is shifting to electric arc furnace production. The government has previously committed £100m in direct support to steelworkers and the local community, and £500m towards the new Electric Arc Furnace.

Secretary of State for Wales Jo Stevens said: “This is a significant moment for Port Talbot and a major step forward for the growing clean energy industry in Wales. This investment will further cement Port Talbot as a hub of the industries of the future, and heralds the next chapter of jobs and investment to the area. Thanks to our investment, the work of trade unions and local businesses, and the dedication and spirit of local people – Port Talbot and the whole region have a very bright future.”

For those entering the industry, the investment resonated personally. Lewis Smith, 23, from Neath, who works in ABP’s business development team, told the BBC it was a “huge investment in south Wales” and “extremely good news for an area that needs it now more than ever.” Abbey Smith, 24, a commercial graduate at ABP from Cardiff, said she thought the investment was “going to help put Port Talbot on the map.”

Industry welcomes the progress

Developers with interests in the Celtic Sea were quick to respond. Mark Hazelton, Project Director at Gwynt Glas – one of the three Round 5 lease winners – said: “This is a vital step towards unlocking the immense potential of floating offshore wind in the Celtic Sea. The investment not only supports energy security, but also lays the foundation for long-term, highly skilled job creation in South Wales.”

Hugh Kelly, Co-Founder and CEO of Simply Blue Energy, developer of the Erebus project, added: “Port infrastructure for both test and demonstration activity and larger commercial scale projects is critical to efficient assembly and deployment, and this progress represents an important step in building the industrial backbone needed to deliver projects and provide a focal point for the emerging supply chain.”

Nikki Keddie, Head of External Affairs and Policy at Ocean Winds, said the announcement represented “positive steps” and that “strengthening local port infrastructure is essential” to supporting the build-out of offshore wind in the Celtic Sea.

Gus Jaspert, Managing Director of Marine at The Crown Estate, concluded: “Establishing a new floating wind sector in the Celtic Sea through Round 5 could create thousands of jobs and economic growth in Wales, the South West and across the country. Ensuring onshore infrastructure is ready to support the successful delivery of this innovative technology is vital, making today’s announcement an important step on the path to us collectively bringing the Celtic Sea opportunity to life.”

A note of caution

Welsh Liberal Democrat MP David Chadwick welcomed the job creation but urged honesty about the limits of the deal: “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.” He called for such projects to be used to strengthen Welsh industry and local supply chains rather than simply host final assembly.

The funding remains subject to subsidy control clearance before construction work can begin.