Being developed by ERM Dolphyn and Source Energie, the project is aiming to secure 2GW of energy that could generate domestic green hydrogen to decarbonise local industries and companies.

The first development site nicknamed Dylan will target deployment in 2027/2028 and be situated off the Pembrokeshire coast.

The site has been identified by the companies on the basis of a phased site selection process, which has included regional resource and constraints analysis, and a high-level shipping and navigation review.

In addition to this, the site also has significant expansion potential and could support scaling of hydrogen production in the area should the market demand continue to soar.

Kevin Lynch, CEO of Source Energie, said, “We are delighted that The Crown Estate plan to assign areas in the Celtic Sea for floating offshore wind energy and we are actively engaging in the consultation process.

“We are also 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.”