Milford Haven CO2 Project: Supporting South Wales’ low-carbon future
Milford Haven CO2 Project is a multi-partner ambition to use existing local expertise to capture, liquify, ship, and safely store, carbon emitted by operations at Pembroke Power Station.
Our Vision
Milford Haven CO2 Project brings together partners on either side of the Milford Haven – RWE and Dragon LNG. Together, working with Acorn, the partnership aims to deliver a carbon capture and storage (CCS) solution in Pembrokeshire with the potential to capture and safely store up to 5 million tonnes of CO2 per year.
Milford Haven has a long history of power generation, with The Milford Haven Waterway Future Energy Cluster, currently supplying 20% of the UK’s annual energy demand. To maintain this industry in a net zero world, RWE and Dragon LNG have come together with the ambition to use its existing expertise and strategic locations to reduce local carbon emissions and support the Welsh and UK Government’s commitment to achieve net zero power generation by 2035.
Pembroke Power Station has been generating electricity since 1964, first as an oil-fired power station, and then, from 2012 as a state-of-the-art combined cycle gas turbine station. Our ambitions for implementing carbon capture and storage technology, as part of the Milford Haven CO2 Project, will help to take Pembroke Power Station into the next phase of its operation.
Across the waterway is Dragon LNG’s terminal which imports Liquified Natural Gas (LNG), stores and re-gasifies it, to deliver a reliable and flexible supply of natural gas into homes and business across the UK. Dragon LNG is developing the integration of LNG regasification and CO2 liquefaction processes at its terminal in Waterston. This integration promises to reduce energy consumption, carbon intensity, and the levelised cost of CO2 export. This can support RWE’s ambitions to decarbonise Pembroke Power Station’s 2 GW supply by processing the captured CO2, before it is shipped to carbon sequestration sites in the North Sea.
By working in partnership on the Milford Haven CO2 Project, we can decarbonise the Power Station’s 2 GW supply, which currently powers over 4 million UK homes – over twice the number of homes in Wales. Together, our vision will build on Milford Haven’s historic energy heritage, safeguarding local jobs, while establishing the Milford Haven Waterway at the forefront of sustainable energy innovation.
The Process
Carbon capture and storage (CCS) is a decarbonisation technology which captures CO2 from emission sources and stores it safely, instead of releasing it into the atmosphere. A summary of the process, as part of the Milford Haven CO2 Project is as follows:
- Energy generation: Carbon dioxide (CO2) emissions are produced by RWE’s Pembroke Power Station during the combustion of natural gas for the generation of power by a Combined-Cycle Gas Turbine (CCGT) power station.
- Capture: CO2 is captured from the flue gas by RWE with a proven and already applied process, so that it is not released into the atmosphere.
- Liquefaction: CO2 will be transported via a new underground pipeline under the Milford Haven waterway to Dragon LNG’s site to be turned into a liquid, ready for shipping.
- Transportation: The liquid CO2 could be transported via ship from a jetty at Dragon LNG’s site on the Milford Haven to a suitable storage location off the coast of Scotland.
- Storage: The CO2 could be received by Acorn, part of the Scottish Cluster, a Track II CCS Project. With Acorn it will be safely stored permanently in depleted gas reservoirs underneath the seabed in the North Sea, preventing it from being released into the ocean or the atmosphere.
Non-pipeline transport for CCS
The UK Government has set out a clear ambition to achieve net zero by 2050 and the implementation of carbon capture and storage has a critical role in achieving this. In 2024, the UK Government pledged to invest up to £21.7 billion over 25 years to help establish a competitive carbon capture market, that could capture and store up to 20-30 million tonnes of CO2 annually by 2050.
The Government’s ambition to establish carbon capture utilisation and storage clusters aims to decarbonise heavy industrial processes such as the steel industry, as well as existing energy generators, by connecting them to safe, permanent, CO2 storage solutions via underground pipelines.
However, to meet the Welsh and UK climate goals, it is critical that opportunities for carbon capture and storage are available all across the UK, not just the clusters that expect to benefit from a pipeline CO2 storage solution.
With existing expertise, and the strategic co-location of the RWE and Dragon LNG, there is no better location to bring forward an integrated CO2 shipping solution in the UK than Milford Haven.
Delivery of the Milford Haven CO2 Project could be transformative in providing a proof of concept that evidences how the UK’s many industrial sites, major manufacturing hubs, and power stations could utilise non-pipeline solutions to capture and safely store CO2 effectively.
Many of these industries are under immense pressure to decarbonise their operations to avoid closure in a transitioning world. By evidencing the potential of non-pipeline CO2 transportation, Milford Haven CO2 Project could provide a future solution that would help to preserve major industries and safeguard jobs across the UK, while driving economic prosperity in our industrial heartlands.
Benefits for South Wales
Energy production is ingrained in Pembrokeshire, with vast energy skills and experience already located in the area. Our ambitions for Milford Haven CO2 Project will build on this, helping to secure the future of existing industry, businesses and jobs, while providing a significant boost to the local economy.
Investment in the Milford Haven CO2 Project would:
Enable a significant reduction in carbon emissions in Wales, decarbonising the electricity consumption of many homes and businesses across South Wales.
Create thousands of jobs during construction and protect skilled local jobs in Pembrokeshire during operation.
Support the Milford Haven Future Energy Cluster to innovate into other byproducts of energy generation, such as green hydrogen.
Through the Milford Haven CO2 Project, Pembrokeshire and South Wales can be at the forefront of innovation, shifting the focus of research and investment towards the possibility of safely shipping CO2. This would represent a significant step forward in rapidly reducing Wales and the UK’s carbon emissions.
Milford Haven CO2 Project is the first of its kind, as a pioneering CCS shipping solution. Its successful delivery could provide an ideal exemplar for investment in CCS with shipping across the UK – continuing Pembrokeshire’s legacy of cutting-edge energy innovation. The shipping of CO2 will open new markets for international trade
The Partners
Milford Haven CO2 Project is being brought forward by partners on either side of the Milford Haven – RWE and Dragon LNG – working with Acorn. The need to work together to find solutions to reduce climate emissions at Pembroke Power Station. The project leverages each partner’s advanced engineering and existing expertise to support a sustainable future for South Wales.
RWE is the owner and operator of Pembroke Power Station and is working collaboratively to drive decarbonisation across the region’s industrial processes as a lead partner of the South Wales Industrial Cluster.
Dragon LNG operate an LNG Terminal north of the Milford Haven, connecting liquefied natural gas from shipping routes to the UK gas network. Dragon LNG would liquefy and load CO2 for transport.
Partners are working with
Acorn, as part of The Scottish Cluster, has the capability to provide a CO₂ receiving and permanent storage solution for a range of diverse emitters across the UK. Acorn could receive and safely store CO2 permanently.
Milford Haven CO2 Project Launches at The Senedd, Marking a Major Step Toward Net Zero
On the 18th of March, the Milford Haven CO2 Project, a groundbreaking carbon capture and shipping initiative, was officially launched at The Senedd. The event, hosted by Samuel Kurtz MS, brought together over 85 Welsh Senedd Members and business leaders, showcasing Wales’ leadership in achieving net-zero carbon emissions.
The project, a collaboration between RWE and Dragon LNG, supported by Acorn, aims to capture up to 5 million tonnes of CO2 per year from the early 2030’s, significantly contributing to the UK and Wales’ net-zero targets while generating jobs and delivering £8 billion to the national economy. The initiative highlights Milford Haven’s strategic importance in decarbonising energy generation and ensuring sustainable industry practices.
Samuel Kurtz MS praised the project, stating: “The Milford Haven CO₂ Project is a beacon of innovation, proving that Wales is not only ready to embrace the transition to a low-carbon future but to lead the charge. This project will safeguard local jobs in the industries that have long supported our county’s economy, power millions of homes, and secure a sustainable future for generations to come.”
Richard Little, Director of RWE’s Pembroke Net Zero Centre and Simon Ames, Managing Director Dragon LNG and Dragon Energy jointly commented on the launch of the initiative “The Milford Haven CO2 Project represents a transformative step in Wales’ energy journey. By combining our expertise, we aim to capture and safely store CO2, reducing emissions while ensuring Pembroke Power Station continues to provide reliable, low-carbon power to the grid. Our partnership exemplifies what can be achieved when industry leaders unite behind a shared vision for sustainability.”
Rebecca Evans MS, Cabinet Secretary for the Economy, Energy, and Planning, also addressed the attendees, emphasizing the importance of innovation and collaboration in achieving climate goals.
The Milford Haven CO2 Project integrates carbon capture at RWE’s Pembroke Power Station, liquefaction at Dragon LNG, and transportation to the North Sea for permanent storage, making CO2 shipping a reality for Wales. The initiative is expected to create thousands of jobs during construction, protect skilled roles during operation, and drive economic prosperity.
As part of the Milford Haven Future Energy Cluster, an industrial hub within the South Wales Industrial Cluster, this project will play a critical role in preserving South Wales’ £6 billion industrial sector by providing a non-pipeline CO2 transportation solution. In doing so, it paves the way for decarbonising major industries across the UK while supporting the nation’s ambitions for a net-zero power generation by 2035.
