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London firm Source Energie and multinational ERM Dolphyn will collaborate on the project, which will use floating wind turbines to produce green hydrogen rather than electricity.
Technology from ERM Dolphyn combines electrolysis, desalination and hydrogen production on a floating wind platform, with hydrogen transported to shore via pipeline.
The first site under development, known as ‘Dylan’, is located approximately 60km off the Pembrokeshire coast, west of Milford Haven. The companies said the site, which could open from 2027-28, has good energy generating conditions, with average wind speeds of above 10m/s, strong expansion potential, and several viable pipeline routes to areas of existing and growing demand.
Future expansion could provide more than 2GW of energy – enough to heat about one million homes with no carbon emissions at the point of use. The full-scale development would also bring several thousand jobs and training opportunities to the region, in assembly, construction and operation.
Kevin Lynch, CEO of Source Energie, said the company is “excited to work with ERM Dolphyn to take offshore green hydrogen production to significant industrial scale. Source Energie is sure that green hydrogen will play a significant role in energy storage, as a fuel for future transportation needs, and as a source of hydrogen for industrial processes.”
Steve Matthews, commercial director for ERM Dolphyn, said: “Areas of deep water around the UK and Ireland provide great opportunities to generate green hydrogen at scale, and to deliver this carbon-free fuel to areas of emerging demand, where it can be used as an alternative to fossil fuels. Following on from our projects in Scotland and the North Sea, Dylan is an important additional step, which will help decarbonise areas around the Celtic Sea region, including South Wales. We are delighted to be working with Source Energie on this exciting prospect, and very grateful for the support provided for Project Dylan by the Welsh government”.
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