March 13, 2026 — Milford Haven, Pembrokeshire, Wales — MorGen Energy, a subsidiary of Trafigura, has reached a final investment decision (FID) for the 20MW West Wales Hydrogen green hydrogen production facility at the former Dragon LNG site within the Celtic Freeport zone.
The project, backed by the UK Government’s Hydrogen Allocation Round 1 (HAR1), marks one of the first subsidized green hydrogen contracts at $12 per kg for 15 years, according to industry reports. Construction is set to begin in 2026, with commissioning expected in early 2028. The plant will produce around 2,000 tonnes of low-carbon hydrogen annually, supporting decarbonization in ports, industrial heating, manufacturing, and chemical feedstocks.
Project Overview
The Celtic Freeport Hydrogen Plant Given Green Light in Wales, as headlined by Business News Wales, is located on the Milford Haven Tax Site. It aligns with the UK’s Low Carbon Hydrogen Standard and has secured revenue support through the Hydrogen Production Business Model and grants from the Net Zero Hydrogen Fund. The facility positions Milford Haven as a hydrogen hub for South Wales.
Luciana Ciubotariu, CEO of Celtic Freeport, welcomed the development:
“MorGen Energy’s decision is another major step forward for the hydrogen economy in South West Wales. Projects like this within the Milford Haven Tax Site show how the Celtic Freeport is accelerating decarbonisation while creating high-value jobs.”
Economic and Job Impacts
The Celtic Freeport Hydrogen Plant Given Green Light in Wales is expected to create skilled jobs and opportunities for local contractors during construction, boosting the regional hydrogen economy. Insider Media described it as a major step for South West Wales.
Werner Lieberherr, CEO of MorGen Energy, stated:
“Reaching FID on West Wales Hydrogen is a defining milestone for MorGen and the UK hydrogen sector. This 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.”
Richard Holtum, CEO of Trafigura Group, added:
“The UK government’s hydrogen support framework was key to this project reaching final investment decision – demonstrating how public policy and private capital can work together to support the decarbonisation of hard-to-abate industries.”
Broader Coverage
Additional reporting from Nation.Cymru, Pembrokeshire Herald, and Hydrogen Insight highlights the approval’s significance. The Celtic Freeport Hydrogen Plant Given Green Light in Wales underscores growing momentum in Wales’ green energy sector, with potential for future expansion.