The "West Wales Hydrogen" project is among the first initiatives to reach a final investment decision (FID) under the UK's Hydrogen Allocation Round 1 (HAR1). Construction is planned to start in 2026, with commissioning scheduled for early 2028.
Site on former refinery grounds
The plant will be built on the site of a former oil refinery in the Celtic Freeport. The hydrogen produced is expected to meet the UK Low Carbon Hydrogen Standard and will be used in various sectors, including port decarbonisation, industrial heat, manufacturing, and as a chemical feedstock. MorGen Energy estimates the expected CO2 savings at over 15,000 tonnes of CO2 equivalents per year. The plant is designed to be expandable in later phases and is expected to serve as a hydrogen hub for industrial decarbonisation in South Wales.
ITM Power supplies electrolyser, financing by Lloyds and Société Générale
The electrolyser will be supplied by the British company ITM Power from Sheffield. The project financing is provided by Lloyds and Société Générale. The project has secured a 15-year revenue support under the UK Hydrogen Production Business Model and funding from the Net Zero Hydrogen Fund.
Werner Lieberherr, CEO of MorGen Energy, said: "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."
Trafigura CEO emphasizes interplay of policy and private capital
Richard Holtum, CEO of Trafigura, placed the project in a larger context: "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."
MorGen Energy was founded in 2021 as the hydrogen division of Trafigura and focuses on developing large-scale green hydrogen ecosystems. Trafigura is a globally operating commodity group with around 14,500 employees in over 150 countries.
