Wales celebrates Freeports success
Milford Haven, Port Talbot and Anglesey will promote green energy
Last updated 23rd Mar 2023
The Celtic Freeport in Milford Haven and Port Talbot and Anglesey Freeport on Ynys Mon have been chosen as Wales’ first freeports, helping to create tens of thousands of new jobs in the green industries of the future.
In May 2022, the Welsh Government reached an agreement with the UK Government to establish a freeport programme in Wales.
Following a bidding process, the Welsh and UK Governments have jointly agreed to create two freeports in Wales, which are expected to be operational later this year.
The Celtic Freeport in Milford Haven and Port Talbot
The freeport will be based around the port of Port Talbot in Neath Port Talbot, and the port of Milford Haven in Pembrokeshire.
The plans focus on low carbon technologies, such as floating offshore wind (FLOW), hydrogen, carbon capture, utilisation, and storage (CCUS) and biofuels to support the accelerated reduction of carbon emissions.
The freeport aims to attract significant inward investment, including £3.5bn in the hydrogen industry as well as the creation of 16,000 jobs, generating £900m in Gross Value Added (GVA) by 2030, and £13bn by 2050.
The Anglesey Freeport, Ynys Mon
The freeport will be based around the port of Holyhead, Anglesey Prosperity Zone, Rhosgoch and M-Sparc.
The freeport will develop the Energy Island Programme (EIP) by focusing on marine energy technology testing on the seabed (tidal and wind).
The freeport aims to create between 3,500 and 13,000 jobs by 2030, with an increased GVA of approximately £500m. It also anticipates significant inward investment, including the possibility of £1.4bn in the green energy sector.
What is a Freeport?
The freeports will form special zones with the benefits of simplified customs procedures, relief on customs duties, tax benefits, and development flexibility.
Welsh freeports will promote fair work opportunities and prioritise environmental sustainability and the climate emergency.
They are designed to promote regeneration and high-quality job creation, become a national hub for global trade and investment across the economy, and foster an innovative environment.
The successful bids are focused on boosting the distinct strengths the sites boast, exploiting opportunities from offshore wind and marine energy to advanced manufacturing and innovation.
The two freeports aim to collectively create around 20,000 jobs by 2030 and attract up to £4.9bn in public and private investments.
Announcing the winning bids, First Minister of Wales, Mark Drakeford said: “I am pleased to confirm the Celtic Freeport in Milford Haven and Port Talbot and Anglesey Freeport have been selected as Wales’ new freeports.
“The Welsh Government has a clear economic mission to transform the Welsh economy, creating a stronger, fairer and greener future.
"The designation of these sites as Wales’ first freeports will reinforce that mission, building on the significant investments and partnerships we have made in these regions over many years.
“The joint working between governments on the freeport programme should serve as a blueprint for future intergovernmental work on a whole range of issues.”
“Wales is a thriving part of the UK..."
Prime Minister Rishi Sunak said: “Wales is a thriving part of the UK, and today’s new Freeports will see businesses and opportunities for people in and around Anglesey, Port Talbot and Milford Haven go from strength to strength.
“Everyone deserves equality of opportunity and working closely with the Welsh Government has helped to deliver these fantastic new sites.
“Today’s Freeports show the hard work being done day in, day out to bring new, high-skilled jobs to communities across Wales and deliver on my promise to grow the economy."
Economy Minister, Vaughan Gething, said: “I would like to congratulate the Celtic and Anglesey teams for their exceptional bids to be awarded freeport status.
"Due to the compelling set of proposals presented to us, I have agreed with the UK Government that a second freeport in Wales can be supported.
“Our ports are an intrinsic part of our rich industrial history. They will be an engine room of our future economy and these bids are designed to accelerate that journey.
"From off-shore energy to advanced manufacturing, they will help create tens of thousands of new jobs – which will support our highly ambitious plans to reach net zero by 2050.
“This will help harness our abundant economic potential domestically and internationally, whilst promoting fair work and sustainability here in Wales.
“I look forward to seeing our freeports delivering meaningful economic and social benefits for Wales.”
Minister for North Wales, Lesley Griffiths said: “This is great news for Anglesey and I know it will be welcomed in the region. The port of Holyhead is a real asset for the whole of North Wales and the freeport will be a significant boost for the people and economy of Anglesey and the wider North West Wales region.”
Levelling Up Secretary Michael Gove said: "Wales has huge untapped potential, and that’s why we have worked in partnership with the Welsh Government to agree not one but two Freeports for Wales.
“This is the result of both governments working together to deliver for Wales, providing yet another example of Wales benefiting from its place in a strong United Kingdom.
“I am absolutely confident these new Freeports will be transformational for Wales, helping to grow the economy, level up and spread opportunity.”
The Welsh freeport programme has been designed to help deliver the Welsh Government’s policies on fair work. This includes workers being fairly rewarded, heard and represented, and can progress in a secure, healthy, and inclusive working environment, where their rights are respected.
The programme also includes a number of other made-in-Wales policies such as:
• The Welsh Government’s Economic Contract
• Trade union involvement in freeport governance structures
• An emphasis on the real living wage and lifting the wage floor
• Setting expectations about employers’ treatment of employer national insurance contributions
The UK Government will provide up to £26m of non-repayable starter funding for each of the freeports being established in Wales – this represents parity with the deals offered to each of the English and Scottish freeports.
Welsh Ministers agreed to support freeport policies in Wales following the UK Government’s agreement it would meet the Welsh Government’s demands that both governments would act as a ‘partnership of equals’ to establish freeports in Wales.
As part of a fair and open competitive process to determine where the policy should be implemented in Wales, the Welsh Government and UK Government jointly published a prospectus, which set out the policy objectives both governments seek to achieve through the establishment of the freeport programme.
The bidding process opened on 1 September 2022 and closed on 24 November 2022. Three bids were received by the deadline.
The successful bids will be taken forward to the next stage of the process – the development of an outline business case.
Commenting on the selection of Celtic Freeport as one of the candidates for a Welsh Freeport, Roger Maggs MBE, Chair of the Celtic Freeport bid consortium, said: “We hope that Wales' two freeports will deliver for the country.
"The future is exciting. The Celtic Freeport has catalysed major business interest, local communities, trade unions and academia in using Wales' largest industrial base as the launchpad for developing new technologies and the renewable energy manufacturing opportunities of tomorrow.
"This has the potential to unlock £5.5 billion of private and public investment for Wales and create new training and innovation facilities, factories and expanded green energy ports, as well as new alternative fuel production complexes.
“Our green investment and innovation corridor will support the creation of 16,000 green jobs, which will not just be good news for Milford Haven, Pembroke Dock and Neath Port Talbot, but also Bridgend, Carmarthen, Swansea, The Valleys and many other communities across Wales.”
The Celtic Freeport consortium comprises Associated British Ports (ABP), Neath Port Talbot Council, Pembrokeshire County Council and the Port of Milford Haven. The bid’s strategically located tax and customs sites span almost 250 hectares in Pembrokeshire and Neath Port Talbot.
Cllr David Simpson, Leader of Pembrokeshire County Council, said: “Today’s announcement that the Celtic Freeport Bid has been successful is fantastic news for Pembrokeshire, Wales and Great Britain.
“The Celtic Freeport will unleash the full green industrial potential of Wales, accelerating the decarbonisation of our most carbon intensive industries and bringing new opportunities to our communities, major international investment and thousands of high skilled jobs to the region.”
Will Bramble CBE, Chief Executive of Pembrokeshire County Council, added: “The Celtic Freeport will produce significant investment in the region, particularly the focused areas of upskilling our workforce and ultimately creating job opportunities here in south west Wales. Fundamentally this will now put us at the leading edge of the green industrial revolution.”
Cllr Steve Hunt, Leader of Neath Port Talbot Council, said: “Today’s announcement is an absolute game changer for Neath Port Talbot and for Wales. It will transform the fortunes of people in all our communities. It puts us at the forefront of the world’s green energy revolution and our residents will soon be working in the industry of the future, learning the skills for securing green, well paid jobs.
Karen Jones, Chief Executive of Neath Port Talbot Council, said: “This great news is the first step towards a much brighter future here in our county borough. I look forward to working with our partners to make sure local people and businesses have the best possible benefit from what’s now in front of us.”
Tom Sawyer, Chief Executive of the Port of Milford Haven, said: “As the UK’s Energy Port, the Port of Milford Haven welcomes this fantastic news which allows us to build on the significant multi-million pound investment we’ve already made in the renewables sector at Pembroke Port. But what really excites us about this announcement today is the positive impact it’s going to have on our coastal communities. Securing the jobs of today and creating fantastic opportunities for future generations.”
Andrew Harston, Regional Director, Associated British Ports, said: “Associated British Ports is absolutely delighted that our Celtic Freeport bid has been successful. Floating offshore wind in the Celtic Sea is a once in a lifetime opportunity for Wales, and the scale needed is immense.
“ABP stands ready to invest £500 million in our port at Port Talbot to ensure first mover advantage to capture this global market. We want our ports to act as a base for FLOW manufacturing, maintenance and operations. And it’s not just about FLOW, it’s about sustainable fuels and hydrogen too.”
Preseli Pembrokeshire MP Stephen Crabb said: “No question, this is a milestone moment for Milford Haven and the whole Pembrokeshire economy.
"A lot of hard work has gone into this project, and I am delighted to have been part of the team to get it over the line.
"The economic and industrial vision behind the Celtic Freeport is exciting and achievable. I’m thrilled that the case we made to UK and Welsh Governments has been successful.”
“The announcement today shows the world that Wales is serious about floating offshore wind and puts us on a firm footing to capture as much local economic benefit as possible.
"Securing Freeport status will send a powerful signal to developers, unlocking new investment in high quality jobs and training opportunities.
"It’s a green light for billions of pounds of “game changing” investment, the creation of thousands of jobs and a lasting skills legacy for generations to come.”
Ian Price, Director, CBI Wales, said: “The announcement of freeports for Milford Haven, Neath Port Talbot, and Anglesey, are a double boost for the economies and communities in both north and south Wales.
“Increasing global inward investment will make a significant difference to Milford Haven, Port Talbot and Anglesey. It means local businesses can better scale-up supply chains, as well as retraining and upskilling workers from existing industries for the renewables sector.
“By working together, the Welsh and UK governments can provide a competitive package of targeted support to draw in world leading firms, which will drive up regional employment in resilient, future focused industries.”
“All three areas are geographically well-placed to capitalise on the Crown Estate’s new licences for Celtic Sea floating offshore windfarm projects. The Anglesey Freeport will also be of huge benefit to businesses in north Wales and north west England.”