Owner of the port of Port Talbot have confirmed £500m investment plans for it to become a leading hub to support floating offshore wind development in the Celtic Sea.

Associated British Ports (ABP), whose portfolio of ports in South Wales also include Cardiff, Newport, Barry and Swansea, said it will repurpose infrastructure to enable the port to host manufacturing, installation, and supply chain activity for the sector. The port, along with the Port of Milford Haven, will form part of a new freeport – the Celtic Freeport.

Both ports are positioning themselves to exploit supply chain opportunities for new floating offshore windfarms in the Celtic Sea, where the Crown Estate has begun a new licensing round.

The Celtic Freeport claims it has the potential to create 16,000 new jobs and attract £5.5bn inward investment.

The planned investment in Port Talbot is part of ABP’s wider sustainability strategy with £1.4bn identified for infrastructure and facilities.

The funding is supported by it institutional investor owners.

Consultants Mott Macdonald has been appointed by ABP to develop a detailed masterplan for the port of Port Talbot.

Ken Norbury, Mott MacDonald’s managing director of transportation (UK and Europe), said: “We’re delighted to have been selected by ABP as its technical delivery partner for what is the biggest and most transformational port project in the UK right now.

“Locally, the project will help put Port Talbot at the heart of the UK’s green energy revolution and will give skilled local workers the tools to play a key part in that. Nationally, it will act as an incubator for new technologies and renewable energy opportunities, unlocking investment and ultimately leading us towards a brighter and greener future.”

Moreover, ABP has renewed a lease agreement with construction materials group Breedon at its Port of Newport,

The agreement sees the current contract for a sand and aggregate terminal extended by a further 15 years and follows Breedon’s acquisition of Severn Sands last year.

A family-run marine dredging business, Severn Sands has had a presence at the Port of Newport since 1994.

It has licences to dredge 500,000 tonnes of sand a year. Breedon said it is well placed to continue growing the business and meet the demand for additional housing in the region.

Helen Thomas, head of property, Wales and short sea ports for ABP, said: “We’re delighted to see Breedon extend their commitment to the Port of Newport and also look to grow their presence across ABP’s other ports in South Wales.”

Chris Burgess, regional land and mineral resources manager for Breedon said: “This renewed lease agreement and our extended presence at the Port of Newport reflects Breedon’s continued support of the construction industry in Wales. Our strategic vision includes expanding our reach across South Wales and further contributing to the region’s growth. We look forward to continuing a successful partnership with ABP.”

Earlier this week the Port of Milford Haven confirmed it hads submitted a multi-million-pound funding bid to a UK Government fund to expand its Pembroke Port aimed at maximising opportunities from floating offshore windfarms in the Celtic Sea.

The port has submitted a bid to the £160m Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) which supports investment in port infrastructure to facilitate floating offshore wind. The scheme is administered by Department for Energy Security and Net Zero.