The Cardiff Capital Region (CCR) has acquired the former Aberthaw Power Station in the Vale of Glamorgan with plans to transform it into a new renewable energy hub with the potential to create thousands of new jobs.
The city region, made up of the 10 local authorities of South East Wales, has bought the decommissioned power station and nearly 500 acres of land, from energy giant RWE in a £8m deal. Funded by the CCR’s £1.2bn City Deal, it has committed a further £28.4m to demolish the power plant and fund remediation and redevelopment work.
A proposed masterplan for the site, which could several a number of years to deliver on, sees it providing:
- Renewable and green energy projects.
- A battery storage facility to support energy projects.
- A zero-carbon manufacturing cluster which will include green hydrogen production facilities.
- A green energy innovation centre.
- An ecology park
The coal powered 1,560 megawatt plant, which began energy generation back in 1970, ceased producing electricity for the National Grid in 2019. It was RWE’s last coal-fired station in the UK.
The CCR’s City Deal is being jointly funded by the Welsh and UK governments. The latest project was approved by the CCR’s cabinet, made up of the region’s 10 local authority leaders.
UK Government Minister David TC Davies said: “This is a terrific project and an important one as we transition to a greener, cleaner environment and a net zero economy.
“The UK Government’s investment in the Cardiff Capital Region will deliver thousands of jobs at Aberthaw and help put Wales on course for an economic recovery from the pandemic.”
Economy Minister Vaughan Gething said: “We are pleased to see Cardiff Capital Region play a leading role in a project designed to deliver new jobs in a stronger, greener regional economy. The proposed plan for Aberthaw is positive news which fits well with our commitment to develop tidal lagoon projects and support ideas that can help Wales become a world centre for emerging tidal technologies.
“The Welsh Government’s support for City Deals is integral to our vision to developing stronger economic regions in a Team Wales recovery.”
Leader Vale of Glamorgan Council and member of the CCR cabinet, Neil Moore, said: “The council has made a firm pledge to help tackle climate change by promoting green initiatives.
“Our project zero commitment aims to significantly reduce the council’s carbon output by 2030 and this scheme fits perfectly with that agenda.
“It will transform the now redundant Aberthaw power station into a carbon-neutral site, which will not only benefit the environment but also promote economic growth. We anticipate that many thousands of jobs can be created as part of this exciting, forward-thinking project.
“We look forward to working with our Cardiff Capital Region partners on this project, one that we believe will have far-reaching positive consequences for this part of South Wales and beyond.”
The CCR said the site would forge strategic links with other major employment locations in the area, including Bro Tathan Business Park, Cardiff Airport, and the overarching St Athan Enterprise Zone
Kellie Beirne, director for the CCR City Deal said: “The acquisition of the Aberthaw Power Station site is a significant opportunity for the Cardiff Capital Region to take ownership of a major strategic site, which will support green and clean economic growth, innovation, and job creation within a key industry of the future – demonstrating compatibility of climate and economic aims.
“The scale and ambition of the proposals signals the intent of CCR to make serious in-roads into its targets and objectives around industrial de-carbonisation and renewable energy generation – as set out in our energy strateg. We want to develop Cardiff Capital Region as an innovative hub for renewable and green energy technology and solutions and grow our employment and skills and talent base accordingly.
Other projects funded by the City Deal to date include the acquisition and fitting out of a former LG building in Newport, at a cost of £40m, which in turn has been leased to tech firm IQE - a key player in South Wales’ compound semiconducter cluster.
Through a competitive tender it is currently seeking to appoint a fund manager for a new £100m innovation investment fund to back the growth of firms across the region. The CCR has committed £50m from the City Deal with the appointed fund manager expected to provide matchfunding.
It is also looking to back a new R&D to commercialisation cyber hub for the region, with additional backing from the Welsh Government.
Last month it launched a new £50m fund to support commercial real estate development across the region, with repayable funding for projects ranging from £2m to £10m
It has also agreed a £40m contribution to the redevelopment of Cardiff Central train station.
The bulk of the City Deal's funding was ringfenced for the electrification of the Core Valley Lines, which should be completed in 2024.
