H2 Energy Europe Plans To Develop The First Large-Scale Green Hydrogen Production Facility In South Wales

The project has now been granted funding from the UK government’s Hydrogen Business Model and Net Zero Hydrogen Fund

H2 Energy Europe, a developer of large-scale green hydrogen eco-systems, announces the award of government funding for its 20MW electrolytic hydrogen production facility at the port of Milford Haven, the first of its kind in South Wales.

The UK aims to establish up to 10GW of low-carbon hydrogen production by 2030, with at least half of production anticipated to come from electrolytic hydrogen, drawing on the scale-up of UK offshore wind, other renewables, and nuclear energy.

H2 Energy Europe’s project has been chosen for financial Hydrogen support as part of the UK government’s Hydrogen Business Model and Net Zero Hydrogen Fund.

The funding agreement is anticipated to be signed in January 2024 and planning permission for the facility has already been granted. The Final Investment Decision (FID) is expected in the first quarter of 2024, with commissioning in 2026. When in operation, the facility will enable industrial users to transition to using green hydrogen produced from domestic renewable energy sources. It will also create permanent, high-skilled jobs and safeguard existing ones by transitioning the workforce from managing petroleum product storage to specializing 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 serve as a chemical feedstock, underscoring the versatility of green hydrogen in supporting diverse industries, including 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 said: “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.”