The project, dubbed, HyLine Cymru will assess the feasibility of a pipeline network from Pembroke to the Swansea Bay area, connecting low-carbon hydrogen production with industrial demand, providing an alternative for other natural gas customers.

Headed up by Wales & West, HyLine Cymru will see eight organisations, Associated British Ports (ABP), Dolphyn Celtic Sea Developments, LanzaTech, National Grid Gas Transmission (NGGT), Pembroke County Council (PCC), RWE, Shell, and Tata Steel UK, explore the feasibility of transporting hydrogen to maximise South Wales’ decarbonisation opportunity.

It is hoped, if built, the pipeline will pave the way for commercial-scale hydrogen production in Pembrokeshire, Port Talbot, and in the Celtic Sea, whilst providing infrastructure for energy intensive industrial customers to begin fuel-switching processes to hydrogen in the 2030s or earlier.

Port Talbot is home to companies such as Tata Steel UK. In September 2021, Tata Steel announced it would introduce direct reduced iron (DRI) technology to make iron using hydrogen ahead of steel conversion in one or more electric furnaces in the Netherlands.

Read more: Tata Steel chooses hydrogen to produce steel in the Netherlands

Additionally, Wales & West have said the project could facilitate the conversion of home heating to hydrogen in Welsh homes, connecting to National Grid’s project Union, which seeks to establish a National Hydrogen Transmission system, linking the UK’s industrial clusters.

Read more: ‘Project Union’ set to create 2,000km hydrogen network

Commenting on the project, Matt Hindle, Head of Net Zero and Sustainability at Wales & West, said, “Hydrogen will play a central role in decarbonising heavy industry and building the economy and jobs of the future. HyLine Cymru will help make sure Welsh homes and businesses can make the most of the opportunities offered by hydrogen.

“We’re delighted to be leading this project to explore the feasibility of transporting hydrogen produced in Pembroke to the central and easterly regions of South Wales, connecting hydrogen supply and demand.”

 Chris Williams, Head of Industrial Decarbonisation at Industry Wales, added, “This proposed hydrogen pipeline will unlock opportunities for floating offshore wind in the Celtic Sea and help ensure that renewable development is maximised for the benefit of industry in South Wales.

“This project will significantly de-risk hydrogen production and demand projects which need connecting infrastructure and help secure the 100,000 people employed in South Wales industries as they go through their just transition to Net Zero.”