Pembrokeshire brings to mind fine beaches, attractive countryside, healthy outdoor activities, and fine local foods served in friendly restaurants.

Whilst Pembrokeshire has these excellent green and healthy credentials it is also a major part of the UK’s energy supply chain. About a quarter of the UK’s refined oil products originate from one of the two oil refineries in Milford Haven. This is due to be supplemented by the construction of two large liquid natural gas (LNG) import, storage and regassification facilities. When completed in 2008 the output from these two facilities will be able to supply about 30% of the UK’s gas requirements. The availability of high pressure gas supplies has attracted interest from electricity generators and RWE npower is awaiting consent to build the UK’s largest gas fired power station in Pembroke.

But not all of the energy developments taking place in Pembrokeshire are based on the hydrocarbon fuels. There is a number of interesting new energy technologies being developed and tested in the county. All of which makes Pembrokeshire an ideal location for businesses looking for plentiful supplies of energy or for companies looking to develop new low carbon energy technologies.

Milford Haven’s westerly location close to major shipping lanes and deep water port facilities led to the development of the energy sector in the county. There is an established infrastructure for oil and electricity distribution and the level of expertise within the excellent network of support companies has led to a healthy worldwide export trade in their services.

The deep waters of the Haven means the refineries operated by Chevron and Murco are accessible to the large supertankers and crude is imported from many parts of the world. The refined products produced here, together with products stored at the SEM Group tank farm, are distributed by pipeline and sea to the UK, other parts of Europe and North America.

The accessibility by sea was also a major factor that attracted LNG companies to invest in Pembrokeshire. The larger of the two facilities under construction is the South Hook LNG plant, a joint venture involving Qatar Gas and Exxon, whilst the smaller Dragon LNG project involves BG Group, Petronas and 4Gas (part of the Carlyle Group). These two projects, together with the Transco pipeline that connects them to the high pressure gas distribution network, represent an investment in excess of £1 billion. However the full cost of these projects, when new ships to transport the gas are included, is many times this and probably in the region of £7 billion.

The arrival of high pressure gas supplies in Pembrokeshire is heralding new combined cycle gas turbine (CCGT) gas fired power stations. RWE npower is currently awaiting the necessary consents to build the UK’s largest gas fired power station. It is estimated that it will cost around £800 million to construct this mighty 2,000MW power station.

RENEWABLE ENERGY

Other generators are looking at more sustainable ways of producing electricity. In particular companies developing marine generation technologies are interested in the seas off Pembrokeshire.

Wave Dragon is to build and test its full size prototype device just off the coast, hopefully leading to the construction and deployment of an array of 10 or more devices in the Irish Sea.

E.ON, in conjunction with Lunar Energy, has announced that they intend to build one of the world’s largest tidal stream power stations off the coast of north Pembrokeshire. This pioneering project will use tidal streams - fast-moving currents created by rising and falling tides - to turn an array of giant turbines situated on the sea floor.

With Pembrokeshire looking set to become an exporter of electricity Imera Power has applied for the necessary licenses and consents to lay an interconnector from Pembrokeshire to Ireland as part of a network.

BIO FUELS

With the major oil companies obliged to source bio-fuels to blend with their mineral oil based products some bio-fuel producers are considering co-locating with the refineries. One such proposal has come from Agri-Energy, a subsidiary of Irish Food Processors. It intends to build a £55 million bio-diesel plant on the Haven waterway which will convert a mixture of tallow and used cooking oils into bio-diesel. The location of the plant will enable the finished product to be transported by water.

Celtic Bio-Diesel already in operates in Pembroke Dock, converting used cooking oil into bio-diesel for a niche market of people and organisations.

TECHNIUM

Technium is state-of-the-art network of R&D incubator and support facilities for new innovative companies and R&D projects of international organisations throughout Wales. Set up with the assistance of European Objective 1 and Welsh Local Regeneration Fund money, Pembroke is now home to the renewable and low carbon energy Technium. Swansea University researchers are currently working at the Power Electronics Laboratory on site; while future developments include a pilot “second generation” bio-refinery.

Pembrokeshire has for many years been a major player in the UK’s energy scene. Current investment in new technologies, knowledge and skills will see the county become a far more important contributor to the nation’s energy networks as well as a leading centre for the development of low carbon technologies.


CONTACT POINT
Tony Streatfield, Inward Investment Officer
Pembrokeshire County Council, County Hall, Haverfordwest SA61 1TP.
Tel: +44-(0)1437-776166.
E-mail: tony.streatfield@pembrokeshire.gov.uk
Web: www.pembrokeshire.gov.uk

David Thomas, Technium Manager
Technium Pembrokeshire, Pembroke Dock
Tel: +44-(0)1646-689 302.
E-mail: technium@pembrokeshire.gov.uk
 

Back to Sector Report Contents