A floating offshore project off the coast of Pembrokeshire will help kickstart the new floating offshore wind industry for Wales - the First Minister has said.

Two Welsh offshore wind projects have secured contracts in the latest UK Government auction, marking a significant step forward for Wales' renewable energy ambitions and deliver thousands of jobs.

The Awel y Mor fixed offshore wind project in north Wales and the Erebus floating offshore wind project off the coast of Pembrokeshire both received contracts through the Contracts for Difference allocation round.

The projects are expected to bring substantial economic benefits to Wales, with the Awel y Mor development alone anticipated to create around 2,000 jobs during construction and another 50 roles to support delivery with RWE.

Blue Gem Wind’s trailblazing Erebus floating offshore wind test and demonstration project off the Pembrokeshire coast is expected to support over 600 jobs during construction and 500 through the supply chain.

The Erebus project will help establish Wales as a leader in the emerging floating offshore wind industry.

First Minister of Wales, Eluned Morgan, said: "I'm delighted that two Welsh offshore wind projects have secured contracts in the latest UK auction. This demonstrates how Wales is well placed to build on its existing capacity for renewable energy, to reap the benefits of these new projects bringing many high-quality jobs and wider economic benefits to our economy.

"The floating offshore project off the coast of Pembrokeshire will help kickstart the new floating offshore wind industry for Wales and, together with extending the fixed offshore wind generation in north Wales, will utilise the latest technology and help to reduce bills and boost our energy security.”

Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said: "Wales is in a fantastic position to support the new floating wind industry and the additional fixed offshore wind projects.

"We will work with these companies to ensure our ports are used, and that our supply chains are in a position to support this industry. We know we have the ability to deliver on the skills already – our offer is recognised as globally competitive, and we will continue to build on this."

Jessica Hooper, Director of RenewableUK Cymru, said: “The auction results show what is possible when Wales competes at scale and sends a clear signal that it is open for clean energy investment.

“With electricity demand set to rise rapidly as transport, heating and industry electrify, offshore wind will be central to delivering secure, affordable, home-grown power. Wales’s success in this auction shows that we can play a leading role - but maintaining momentum will be critical if we are to anchor jobs, investment and long-term economic value here in Wales.”

The success of the Erebus floating offshore wind project is particularly important for South and West Wales.

As a test and demonstration project, Erebus will be a critical first step in unlocking the huge floating offshore wind opportunity in the Celtic Sea, helping to build confidence ahead of much larger projects planned for the region by 2035.