The UK government has announced up to £64 million in funding to support the development of Port Talbot as the first port in the Celtic Sea specifically designed to support floating offshore wind, in a move aimed at boosting the country’s clean power ambitions and industrial growth in South Wales.

The funding will allow Associated British Ports (ABP) to carry out the design and engineering work required to develop the port infrastructure needed to support floating offshore wind projects in the region. The project is expected to help unlock at least 4.5 GW of floating offshore wind capacity in the Celtic Sea—enough to power around 6.5 million homes.

Floating offshore wind turbines are installed in deeper waters than conventional offshore wind farms, allowing them to harness stronger and more consistent wind resources. The Celtic Sea is considered one of the most promising regions in Europe for floating offshore wind.

Once completed, the port development is expected to support thousands of jobs and attract more than £500 million in investment to the Port Talbot area. According to the UK government, the wider development of floating offshore wind in the Celtic Sea could create up to 5,000 jobs while strengthening domestic energy security by expanding clean, homegrown power generation.

UK Energy Secretary Ed Miliband said the project forms part of the government’s broader strategy to position Wales at the centre of the country’s clean energy transition. He noted that developments ranging from floating offshore wind to potential small modular reactors demonstrate the region’s growing role in the UK’s energy system.

Henrik L. Pedersen, chief executive officer of ABP, said the agreement on government support represents a key step toward delivering the infrastructure needed to scale up floating offshore wind in the UK. He added that the port could become a cornerstone of the emerging industry in the Celtic Sea, while driving industrial regeneration and skilled job creation.

The investment also builds on broader government efforts to support Port Talbot’s industrial transition. The UK has pledged £500 million to help Tata Steel construct a new electric arc furnace, ensuring the town continues to produce lower-carbon steel.

In addition, £122 million has been allocated through the Port Talbot Transition Board to support workers, businesses and communities affected by changes in the steel industry, including training programmes and economic regeneration initiatives.

The funding for the port project will be subject to final government approvals and a review by the Subsidy Advice Unit. If completed, the development—alongside the creation of the Celtic Freeport and investments in clean steelmaking—could position Port Talbot as a key hub in South Wales’ growing clean energy economy.