The United Kingdom’s ambition to lead in offshore hydrogen production is taking tangible form as the Milford Haven: Hydrogen Kingdom (MH:HK) project advances toward deployment in the Celtic Sea.
Set within the Pembrokeshire Demonstration Zone (PDZ)—a 90 km² offshore test area leased from The Crown Estate—the initiative seeks to demonstrate the technical and regulatory feasibility of producing hydrogen at sea using floating wind and electrolysis technologies.
At its core, the MH:HK project is an exercise in scaling integrated offshore energy systems. The 10–15 MW demonstrator facility, once operational, is expected to evolve into a 135 MW installation capable of generating more than 10,000 tonnes of renewable hydrogen annually. This output could become a significant regional energy source, feeding into industrial and transport decarbonization efforts across South Wales, one of the UK’s emerging clean energy hubs.
The project brings together a consortium of specialists—Celtic Sea Power, Dolphyn Hydrogen, ORE Catapult, and Wales & West Utilities—each contributing to a distinct aspect of the design, permitting, and operational roadmap. According to Brad Davies, Survey and Consents Manager at Celtic Sea Power, one of the project’s defining achievements has been its proactive consenting strategy. By establishing early collaboration with regulators and stakeholders, the team has reduced uncertainties that often slow down marine energy developments. This approach is particularly significant as the UK works to clarify the permitting frameworks for floating offshore hydrogen—a technology still in its infancy compared to fixed offshore wind.
From a technical perspective, MH:HK builds on Dolphyn Hydrogen’s floating wind-to-hydrogen model, which integrates electrolysis directly into a floating platform, eliminating the need for subsea cables to shore. This configuration offers potential cost and efficiency advantages, particularly in deeper waters like those of the Celtic Sea. The PDZ site provides a controlled environment to test this integration at scale while examining opportunities for co-location with wave energy systems, an innovation that could improve energy balancing and infrastructure utilization.
The project also aligns with the UK Government’s low-carbon hydrogen targets, which include plans for up to 10 GW of domestic production capacity by 2030. By demonstrating an offshore generation model, MH:HK could complement national hydrogen transport initiatives such as Project Union and HyLine Cymru, both of which aim to develop a UK-wide hydrogen transmission backbone. Its integration within the Milford Haven Future Energy Cluster and Celtic Freeport further underscores its strategic role in regional decarbonization and industrial revitalization.
Funding support for MH:HK comes from Innovate UK’s Launchpad: Net Zero Industry South West Wales program and co-funding via the Swansea Bay City Deal’s Pembroke Dock Marine initiative, both designed to accelerate innovation-led clean energy projects. The backing illustrates a broader shift in UK energy policy toward cross-sector collaboration, where regional development, industrial policy, and energy innovation converge.
As the MH:HK project progresses toward deployment, it will serve as a test case for the scalability of offshore hydrogen systems—technically, economically, and regulatorily. If successful, it could help establish a blueprint for future developments in the Celtic Sea, an area identified by the Crown Estate as a key frontier for both offshore wind and hydrogen co-development.
Stay updated on the latest in energy! Follow us on LinkedIn, Facebook, and X for real-time news and insights. Don’t miss out on exclusive interviews and webinars—subscribe to our YouTube channel today! Join our community and be part of the conversation shaping the future of energy.
