Port Talbot, in South Wales, is set to become the first port in the Celtic Sea with a dedicated floating offshore wind plant thanks to government backing.

A £64m government grant will enable Associated British Ports (ABP) to complete the essential design and engineering work needed to build one of the first floating offshore wind ports in the UK.

It says the Celtic Sea offers some of the best conditions for floating offshore wind in Europe. Unlike traditional offshore wind farms, floating turbines are based in deeper waters, where they can harness stronger and more consistent wind speeds. 

The new port will unlock an initial 4.5 GW of floating offshore wind projects in the Celtic Sea - enough to power 6.5 million homes - following last year’s successful seabed leasing round by The Crown Estate.

ABP expect that, once completed, the new port will support thousands of jobs and unlock more than £500m in investment for Port Talbot.

Henrik L Pedersen, chief executive officer of ABP, said: “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.”

Secretary of state for Wales, Jo Stevens, added: “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.

“The UK government has backed steelworkers and the community in Port Talbot with £100m in direct support, and £500m  for the construction of a new Electric Arc Furnace ensuring that the town will manufacture clean steel into the future.  

“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.”

Grant terms have been agreed with ABP and the funding will be subject to the outcome of the mandatory Subsidy Advice Unit referral and final government approvals.