RWE, the largest power generator in Wales, and Dragon, an industry leader in LNG (Liquefied Natural Gas), are proud to announce the Milford Haven CO2 Project. This pioneering initiative will integrate carbon capture, liquefaction, temporary storage, and ship loading of captured CO2 to enable its transportation from the Dragon site via non-pipeline transport (NPT).
The project aims to connect industries from both the south and north sides of the Milford Haven Waterway, supporting decarbonisation by directly linking the RWE and Dragon facilities, and providing a CO2 shipping solution. This project is a crucial component of the South Wales Industrial Cluster (SWIC) Deployment Project, with RWE serving as the lead partner.
The project is exploring options for transportation of the CO2 including discussions with Acorn, a Track 2 Transport and Storage system operator; in addition RWE and Dragon recently responded to the call for evidence on non-pipeline transport and cross-border CO2 networks.
Richard Little, Director of RWE’s Pembroke Net Zero Centre and Simon Ames, Managing Director Dragon LNG and Dragon Energy jointly commented on the launch of the initiative: “The Milford Haven CO2 Project will support the transition of Milford Haven industries towards a net zero future whilst maintaining energy security for the UK and achieving the Wales’ budget 3 goal for decarbonisation. RWE’s gas fired Pembroke Power Station is developing a CCS project and Dragon is developing a project for liquefaction and shipping of CO2. This will protect jobs, enhance the economy and protect security of supply into future green economies centred around renewables.”
RWE is exploring options to apply carbon capture technology at Pembroke power station, a key part of the Pembroke Net Zero Centre (PNZC) initiative. This plant could provide up to 2.2 GW of decarbonised, secure, and flexible energy, enough to power around 4.3 million homes, and capture up to 5 million tonnes of CO₂ annually,. Feasibility studies have been delivered on technology options, with first public consultation expected during 2025.
Dragon is developing a project to integrate LNG regasification and CO2 liquefaction processes at its terminal in Waterston. This integration promises to reduce energy consumption, carbon intensity, and the levelized cost of CO2 export, supporting RWE’s Pembroke Net Zero Centre by processing CO2 before shipping it via NPT to carbon sequestration sites. Dragon has appointed contractors to conduct a feasibility study on the technical solutions, carbon intensity reduction, and economic viability.
CO2 shipping, which involves liquefying and transporting captured CO2 to established carbon storage sites using specialised vessels, is crucial for regions without access to nearby carbon stores or existing pipeline infrastructure. This includes areas like the Thames Estuary and South Wales, providing a clear pathway to decarbonising vital power generation assets and critical industries.
Decarbonising industrial activities is essential for environmental sustainability and maintaining economic stability and job security in the region.
The Milford Haven CO2 project represents a significant commercial opportunity for the UK, which owns a substantial portion of Europe’s CO2 storage sites. Establishing a robust shipping capability will open market opportunities for the future, bringing green jobs and new employers to the UK. To ensure the success of this project, it is crucial that Non-Pipeline Transport (NPT) is incorporated into existing Carbon Capture Storage business models, allowing projects like Milford Haven CO2 to bid into the Track 2 build-out phase from 2025.
