Trafigura, a leading global commodities company, announced that its subsidiary, MorGen Energy, has taken the final investment decision (FID) to proceed with constructing a 20MW1 green hydrogen production facility in Milford Haven, Wales. The West Wales Hydrogen project is one of the first projects supported by the British Government’s flagship hydrogen allocation round (HAR1) to reach FID.
The plant, eyeing an early 2028 commissioning, will start its construction activities this year itself. The facility will reportedly have a yearly production capacity of around 2,000 tonnes of low-carbon hydrogen, meeting the UK Low Carbon Hydrogen Standard. The hydrogen will be used for a wide range of applications, including decarbonising ports, industrial heating, manufacturing and chemical feedstock.
Situated within the Celtic Freeport on the site of a former oil refinery, the project will generate highly skilled jobs and utilise local contractors during the construction phase. The facility can be scaled in subsequent phases in line with demand, and is set to become a future hydrogen hub supporting industrial decarbonisation in South Wales.
ITM Power will supply the electrolyser system for the facility. Sheffield-based ITM Power was chosen by MorGen as a domestic supplier, to support the development of the British hydrogen technology sector. Lloyds and Societe Generale are providing project financing for the West Wales Hydrogen production facility.
“The UK government’s hydrogen support framework was key to this project reaching final investment decision – demonstrating how public policy and private capital can work together to support the decarbonisation of hard-to-abate industries. The West Wales Hydrogen project reflects Trafigura’s ability to commercialise emerging commodity markets, connecting new supply with customers seeking reliable, low-carbon solutions,” commented Richard Holtum, CEO of the Trafigura Group.
“Reaching FID on West Wales Hydrogen is a defining milestone for MorGen and the UK hydrogen sector. This project demonstrates that green hydrogen projects in the UK can be delivered as bankable infrastructure investments when strong industrial demand is combined with a clear and stable policy framework. We are grateful for the strong support of the UK Government, especially the Department for Energy Security and Net Zero, and our partners, and we look forward to beginning construction and delivering hydrogen to our customers from 2028,” Werner Lieberherr, CEO of MorGen Energy, said.
“We are backing hydrogen because it is crucial in decarbonising industry, driving investment, boosting our energy security and creating hundreds of jobs in our industrial heartlands. This investment shows how Wales is embracing the clean energy transition, with one of the UK’s first commercial-scale low-carbon hydrogen production plants creating new opportunities for local communities,” Minister for Energy, Michael Shanks, remarked during the occasion.
Secretary of State for Wales, Jo Stevens said, “Wales is at the forefront of the green energy revolution, and it’s great to see the West Wales Hydrogen project amongst the first in the UK to reach this stage, with the support of the UK Government. This is a huge milestone in the delivery of the project, which will create jobs and help grow the Welsh economy.”