Milford Haven: Hydrogen Kingdom – MEW Consultancy

We recently supported the Innovate UK project Milford Haven: Hydrogen Kingdom to explore hydrogen offtake as a driver for wave energy deployment off the coast of Pembrokeshire.  

Wave energy remains an under-utilised part of the UK’s renewable portfolio, it sits in a ‘valley of death’, caught between promising innovation and large-scale commercial roll-out. The challenge is finding the right route to market. Today, it’s too costly to compete through schemes like Contracts for Difference (CfD), but new options, such as co-location with offshore wind and hydrogen offtake mechanisms, could unlock its full potential. 

The south-west approaches of Wales and the Celtic Sea enjoy one of the strongest and most accessible wave climates in England and Wales. When combined with short distances from Milford Haven, established infrastructure, and the proposed development site’s existing lease, Pembrokeshire offers a uniquely low-friction environment for proving commercial-scale concepts.  

The report explores combining up to nine floating wind turbines that each have an integrated electrolyser (that produces green hydrogen) and wave energy devices to lower the cost of wave energy through the sharing of infrastructure. The proposed development is located inside the Pembrokeshire Demonstration Zone (PDZ), a 90 km² Crown Estate lease positioned ~15km south-west of Milford Haven. 

Why Hydrogen? 

Producing green hydrogen needs electricity – and wave energy can provide it. It also works hand-in-hand with wind: when the wind drops, the waves often keep going, which means more consistent hydrogen production. What makes this especially attractive is the chance to share infrastructure with floating wind farms. Instead of each project developing its own consent and energy export infrastructure, wave devices could plug into the same system that wind uses, making the power cheaper to deliver. In this project, the energy would be brought ashore as hydrogen rather than electricity. That could bring extra financial benefits if industrial users are willing to pay a higher premium for green hydrogen. 

Cost 

Deploying wave devices around just one floating wind platform would be very costly. But the proposed project includes nine platforms, each with 1.75MW of spare electrolyser capacity – adding up to 15.75MW in total. By spreading wave devices across all of them, the project can take advantage of economies of scale. That means costs per unit fall sharply, making wave energy far more competitive. 

Jobs and Value  

Every megawatt of wave energy installed could bring about £0.6 million in economic value and 1–2 jobs over the project’s life. A full 15.75 MW project could create ~20 long-term jobs and £9.5 million in value, plus many more short-term construction jobs. 

Challenges 

• Only one company is truly ready to deliver wave arrays at scale right now. 

• Wave energy at the site is strong in winter but weak in summer—business models must allow for seasonal lulls. 

• Storms and strong tides make the site technically challenging. 

Recommendations

Nine technical recommendations were produced, which outline a pathway to move the wave-to-hydrogen concept from an idea to a plan that’s ready for serious investment. 

The recommendations can be summarised as follows: 

• Comission detailed studies on how often wind “gaps” align with wave energy (critical for economics). 

• Publish a clear roadmap for site readiness and consents. 

• Secure hydrogen offtake agreements to guarantee revenue. 

• Invest in local supply chains so benefits stay in Wales. 

This concept that combines wave, floating wind and green-hydrogen infrastructure suggests that, if scaled quickly, wave energy in Pembrokeshire could finally break through to commercial viability, supporting Wales’ clean energy future and creating local economic benefits. 

See below for the full report: Milford Haven: Hydrogen Kingdom – Exploring Hydrogen Offtake as a Driver for Wave Energy Deployment in Pembrokeshire.

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