The UK aims to establish up to 10 GW of low-carbon hydrogen production by 2030, with at least half of this production anticipated to come from electrolytic hydrogen. This will draw on the scale-up of UK offshore wind, other renewables, and nuclear energy.
The funding agreement is expected to be signed in January 2024, and planning permission for the facility has already been granted. The Final Investment Decision (FID) is projected for the first quarter of 2024, with commissioning scheduled for 2026. Once operational, the facility will enable industrial users to transition to green hydrogen produced from domestic renewable energy sources. Additionally, it will create permanent, high-skilled jobs and safeguard existing ones by transitioning the workforce from managing petroleum product storage to specialising in handling green hydrogen.
Julian O’Connell, Project Director of H2 Energy Europe, said: “We very much welcome the support that the UK government and Pembroke County Council have given to our project. The interest that we’ve already received from local industry means we are already reviewing the opportunity to scale-up the facility.”
The green hydrogen produced at Milford Haven will fuel a variety of applications across South Wales, including shipping and industrial power. It will also be used as a chemical feedstock, underscoring the versatility of green hydrogen in supporting diverse industries. This includes major local companies like Sofidel, a leading global producer of tissue paper.
Giuseppe Munari, Country Operations Manager of Sofidel UK, said: “H2 Energy Europe’s pioneering approach in green hydrogen production aligns with our vision for a multi-faceted energy strategy, where green hydrogen will play a key role in significantly reducing the carbon emissions from our operations. The UK government’s support is fundamental in this transition.”
Julien Rolland, CEO of H2 Energy Europe, commented: “We are very grateful for the support that the UK Government has announced for our 20MW electrolytic hydrogen production facility. H2 Energy Europe is exploring additional opportunities for hydrogen projects in the UK including midstream services with our award-winning hydrogen transport and storage container system to support and advance the local hydrogen economy. The interest that we’ve already received from local industry means we are already reviewing the opportunity to scale up the facility.”
