Plans for a clean energy hub on the outskirts of Holyhead have moved a step closer.

An outline business case has been approved for the £22 million scheme, which would see a hydrogen production site being developed at Port Cybi.

Menter Môn, which is leading the scheme alongside Hynamics, says it will help businesses to access a local supply of low-carbon green energy as demand develops.

Planning permission has already been granted but the scheme is now aiming to secure North Wales Growth Deal funding to move forward.

Anglesey Council leader Gary Pritchard, who also leads the low carbon energy programme at Ambition North Wales, said: "Approval of the outline business case is an important milestone for the Holyhead Hydrogen Hub and shows the confidence Ambition North Wales has in the role this project can play in supporting the transition to a low-carbon economy."

"This is about more than producing green hydrogen. It is about creating the infrastructure, skills and confidence needed to support businesses, attract investment and help build a new clean energy sector here."

The 5MW hydrogen hub is expected to produce nearly 9,000 tonnes of green hydrogen over its planned 15-year lifespan, delivering around 88,000 tonnes of carbon savings.

Hynamics, a part of the energy giant EDF, is providing £13.6 million for the scheme, alongside around £8.6 million of public investment.

If it gets the go-ahead, the hub will concentrate on harder-to-decarbonise sectors such as transport, logistics, construction, port operations and events.

Dafydd Gruffydd, Menter Môn managing director, said: "Holyhead is a strategically important location for the development of green hydrogen in Wales with existing grid connections and transport links...our vision is to unlock the potential of our people and resources to secure the future of our communities."

"We’re aiming to deliver the Holyhead Hydrogen Hub as part of our growing energy portfolio, driven by a vision to create local jobs, boost the region’s economy, and ensure that the transition to clean energy delivers long-term benefit for our communities."

"We are very grateful to our partners and look forward to continuing to work with our partners to progress and deliver this important project."

The full business case for the project will now be developed for consideration later in the year, along with work to secure commercial arrangements.