March 11, 2026 [Storage Terminals Magazine]- Trafigura, a market leader in the global commodities industry, has announced that its wholly-owned subsidiary, MorGen Energy, has approved the final investment decision (FID) to begin construction of a 20MW green hydrogen production facility in Milford Haven, Wales. The West Wales Hydrogen project is among the first projects supported by the UK Government’s flagship Hydrogen Allocation Round (HAR1) to achieve FID.

With construction expected to begin in 2026 and commissioning targeted for early 2028, the West Wales Hydrogen plant is set to produce approximately 2,000 tonnes per annum of low-carbon hydrogen, fully compliant with the UK’s Low Carbon Hydrogen Standard. The hydrogen will serve a broad range of applications, including port decarbonisation, industrial heating, manufacturing and chemical feedstock.

Located on the site of a former oil refinery within the Celtic Freeport, the project is expected to support the creation of highly skilled jobs and the engagement of local contractors throughout the construction phase. The facility has the capacity to scale in subsequent phases as demand evolves, and is positioned to become a future hydrogen hub, supporting industrial decarbonisation across south Wales.

MorGen has selected Sheffield-based ITM Power to supply the electrolyser system, a move that supports domestic manufacturing and the development of the UK hydrogen technology sector. Project financing for the facility is being provided by Lloyds and Societe Generale.

Key Project Facts

Capacity: 20MW green hydrogen production facility

Output: ~2,000 tonnes per annum of low-carbon hydrogen

Location: Milford Haven, Wales — former oil refinery site within the Celtic Freeport

Timeline: Construction from 2026; commissioning by early 2028

CO₂ savings: Over 15,000 tonnes of CO₂e emissions savings expected annually

Revenue support: 15-year revenue support via the UK Government’s Hydrogen Production Business Model

Executive Commentary

Richard Holtum, CEO of the Trafigura Group, commented that the UK government’s hydrogen support framework was key to the project reaching final investment decision, describing it as a demonstration of how public policy and private capital can work together to support the decarbonisation of hard-to-abate industries. He added that the West Wales Hydrogen project reflects Trafigura’s ability to commercialise emerging commodity markets, connecting new supply with customers seeking reliable, low-carbon solutions.

Werner Lieberherr, CEO of MorGen Energy, described reaching FID as a defining milestone for MorGen and the UK hydrogen sector. He stated the 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, and expressed gratitude for the strong support of the UK Government, especially the Department for Energy Security and Net Zero.

Minister for Energy Michael Shanks stated that the government is backing hydrogen because it is crucial in decarbonising industry, driving investment, boosting energy security and creating hundreds of jobs in industrial heartlands. He described the investment as evidence of Wales embracing the clean energy transition, with one of the UK’s first commercial-scale low-carbon hydrogen production plants creating new opportunities for local communities.

Secretary of State for Wales Jo Stevens noted that Wales is at the forefront of the green energy revolution, welcoming the West Wales Hydrogen project as among the first in the UK to reach this stage with the support of the UK Government. She called it a huge milestone in the delivery of a project that will create jobs and help grow the Welsh economy.