Green hydrogen plant to be built in Milford Haven with government backing

"This project represents one of the UK's first commercial-scale low-carbon hydrogen production plants. The facility will produce around 2,000 tonnes of hydrogen annually using electrolysis, a process that splits water into hydrogen and oxygen using electricity generated from renewable sources, primarily wind energy."

"The hydrogen produced will be used across a range of industrial applications, including industrial heating, manufacturing processes and potentially transport, supporting efforts to decarbonise sectors that are difficult to electrify. To make the project financially viable, the UK government has agreed to guarantee a level of income for the plant for 15 years."

Trafigura's energy arm, MorGen Energy, has approved the West Wales Hydrogen project at a former oil refinery site in Pembrokeshire. Construction begins later this year, with the facility designed to produce approximately 2,000 tonnes of hydrogen annually using electrolysis powered by wind energy. The project qualifies as green hydrogen with zero carbon emissions during production. The hydrogen will support industrial heating, manufacturing, and potentially transport applications in hard-to-decarbonize sectors. The UK government provides financial support through its hydrogen allocation programme, including a 15-year revenue guarantee to bridge the cost gap between green hydrogen and cheaper fossil fuels, making the project commercially viable.

Read at Business Matters