A PARTNERSHIP has been formed to explore the construction of a project connecting industry across the Milford Haven Waterway.

RWE – the largest power generator in Wales – and Dragon LNG – one of the three UK LNG terminals providing energy security into the UK – have come together to explore the potential for the construction of a multi-utility service transit (MUST) infrastructure project that will connect industry across the Milford Haven Waterway.

There is currently a feasibility study being carried out and if this has a favourable outcome, then the MUST project could have a number of opportunities including:

  • Potential full elimination of CO2 emissions from Dragon LNG’s regasification process by utilising the residual process heat from the generators at RWE’s Pembroke Power Station.
  • Establish an export route for C02 from a potential carbon capture plant being developed at Pembroke Power Station.
  • Enable the development of a CO2 liquefaction, storage and shipping capability at Dragon LNG.
  • Establish an additional export route for blue and green hydrogen (H2) from the south to the north side of the Milford Haven waterway with potential hydrogen from RWE’s Pembroke Green Hydrogen projects.
  • Create an opportunity for other industries to access a key piece of infrastructure across the Milford Haven to enable broader industrial decarbonisation. This could include supply water, direct wire connection (potentially from offshore renewables) and other utilities or products.

The MUST project is a collaborative, flagship component of the South Wales Industrial Cluster (SWIC) deployment project and represents a step change in net zero infrastructure. It is supported by an award from UK Research and Innovation (UKRI’s) Industrial Decarbonisation Challenge programme. This will provide key support in the engineering and design phases of the project.

Dr Bryony Livesey, director of industrial decarbonization at the Industrial Strategy Challenge Fund, said: “Developing cost-effective decarbonization routes for the UK’s major industrial regions is a crucial element of reaching net zero emissions by 2050.

“The MUST project will make an important contribution to the development of the South Wales Industrial Cluster, and we look forward to supporting the project to deliver its objectives.”

Sarah Jennings, Natural Resources Wales’ executive director, said: “Natural Resources Wales welcomes the opportunity to support the development of the multi-utility service transit (MUST) project through the feasibility study stage. Our priority will be finding solutions that enable decarbonization ambitions while ensuring the sensitivity of the Pembrokeshire Marine SAC and Milford Haven Waterway SSSI is fully understood and safeguarded as the proposals take shape.

“Through open collaboration, we hope to see innovative nature-positive solutions that carefully balance decarbonization opportunities with the conservation of these special natural assets and the interests of local communities.”

Simon Ames, MD Dragon LNG and Dragon Energy commented: “Dragon has an exciting and incredibly important future ahead as we decarbonise our existing site through the growth of renewables to protect the lives and jobs in our communities, playing a key part in a just energy transition. We need help from government and regulators to ensure it can happen in a sustainable way providing essential infrastructure whilst protecting the environment and the grant from UKRI was incredibly timely and together with support from NRW to participate in the feasibility studies.”

Richard Little, RWE director of PNZC, commented: “We are delighted that the MUST project has received funding. It is a key enabler of RWE’s Pembroke Net Zero Centre (PNZC), a major multitechnology decarbonisation initiative in South Wales, which supports the broader decarbonisation of the region’s industry as part of the South Wales Industrial Cluster. Using RWE’s decades of experience and expertise in power production, the PNZC will bring together three key pillars of energy infrastructure - the decarbonisation of the gas-fired Pembroke Power Station: the production of green hydrogen on site, and the development of floating offshore wind in the Celtic Sea.”