MorGen Energy, a subsidiary of Trafigura, has given the go-ahead for a final investment in a 20MW green hydrogen production facility located in Milford Haven, Wales.
The company said that the West Wales Hydrogen project is one of the first projects that gets FID from the Hydrogen Allocation Round 1 of the UK government.
MorGen Energy said that construction of the 20MW green hydrogen production facility should start in 2026 and that the project should be up and running by early 2028.
The plant should make around 2000 tons of low-carbon hydrogen every year, which is indeed in line with the Low Carbon Hydrogen Standard of the UK.
The hydrogen will be used for applications like decarbonizing ports and industrial heating as well as chemical feedstock.
The structure will go up on the site of an old oil refinery at Celtic Freeport in Milford Haven.
MorGen Energy said that the 20MW green hydrogen production facility is likely to create highly skilled jobs and use local contractors throughout the time of construction.
The facility will get its electrolyser system from ITM Power, which is based out of Sheffield.
Lloyds and Societe Generale are funding the development of the project.
As per the chief executive officer of the Trafigura Group, Richard Holtum, “The UK government’s hydrogen support framework was key to this project reaching a final investment decision – demonstrating how public policy and private capital can work together to support the decarbonization of hard-to-abate industries.”
He adds that “The West Wales Hydrogen project reflects Trafigura’s ability to commercialize emerging commodity markets, connecting new supply with customers seeking reliable, low-carbon solutions.”
Says Werner Lieberherr, the chief executive officer of MorGen Energy, “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.”