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

The UK aims to establish up to 10 GW of low-carbon H₂ production by 2030, with at least half of production anticipated to come from electrolytic H₂, drawing on the scale-up of UK offshore wind, other renewables, and nuclear energy.

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

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 H₂ 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 H₂ 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 H₂ production aligns with our vision for a multi-faceted energy strategy, where green H₂ 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 20-MW electrolytic H₂ production facility. H2 Energy Europe is exploring additional opportunities for H₂ projects in the UK including midstream services with our award-winning H₂ transport and storage container system to support and advance the local H₂ economy. The interest that we’ve already received from local industry means we are already reviewing the opportunity to scale up the facility.”