Trafigura subsidiary MorGen Energy has approved final investment decision for a 20MW green hydrogen production facility in Milford Haven, Wales.
The West Wales Hydrogen project is among the first developments supported by the UK government’s Hydrogen Allocation Round 1 to reach FID, the company said.
Construction is expected to begin in 2026 with commissioning targeted for early 2028, MorGen Energy added.
The plant is expected to produce about 2000 tonnes of low-carbon hydrogen annually in line with the UK’s Low Carbon Hydrogen Standard.
The hydrogen will be used in applications including port decarbonisation, industrial heating, manufacturing and chemical feedstock.
The facility will be built on the site of a former oil refinery within the Celtic Freeport in Milford Haven.
MorGen Energy said the project will support highly skilled jobs and engagement of local contractors during construction.
Sheffield-based ITM Power has been selected to supply the electrolyser system for the facility.
Project financing for the development is being provided by Lloyds and Societe Generale.
“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,” said Richard Holtum, chief executive officer of the Trafigura Group.
“The West Wales Hydrogen project reflects Trafigura’s ability to commercialise emerging commodity markets, connecting new supply with customers seeking reliable, low-carbon solutions.”
“Reaching FID on West Wales Hydrogen is a defining milestone for MorGen and the UK hydrogen sector,” said Werner Lieberherr, chief executive officer of MorGen Energy.
“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.”