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ITM Power has announced the finalization of a supply agreement and binding heads of terms for a long-term services agreement with MorGen Energy for the 20MW West Wales Hydrogen project. The landmark deal represents a major step towards the project's Final Investment Decision and underscores the growing momentum of green hydrogen in the UK's energy transition.
Project Details and Location
The West Wales Hydrogen project is a nationally significant clean energy initiative located in Milford Haven. The project has been awarded funding under the UK government's Hydrogen Allocation Round 1 (HAR1) programme. Located on the site of the former Milford Haven Refinery, the new plant is strategically positioned to serve key industrial clusters in Milford Haven, Port Talbot, and other locations throughout Wales.
With all necessary permits secured and commercial terms with key stakeholders nearing completion, the project is on track to begin groundwork before the end of the calendar year. This agreement marks a pivotal moment, pushing the project closer to its Final Investment Decision and solidifying its place as a cornerstone of the UK's energy transition strategy.
Technology and Equipment
At the heart of the project is ITM Power's cutting-edge POSEIDON, a 20 MW modular electrolyser platform. This technology is central to the project's mission to produce green hydrogen on a large scale. The selection of ITM Power as the electrolyser supplier was initially announced on June 17, reinforcing the company's leading position in providing scalable and high-performance solutions crucial for decarbonizing industrial and transport sectors.
The modular design of POSEIDON is a key advantage, offering a flexible and efficient path to deploying large-scale hydrogen production. The platform is designed to provide high-performance solutions for the hydrogen sector.
Applications and Impact
The green hydrogen produced will serve dual purposes in the regional economy. The facility will power industrial operations in the surrounding area, serving key industrial clusters throughout Wales. In addition to powering industrial operations, the green hydrogen produced will also be used to support the transition to cleaner transport, offering a zero-emission alternative to traditional fuels.
This dual-purpose utility underscores the project's broad impact on the regional economy and environment. The project aims to contribute significantly to decarbonizing both industrial and transport sectors in the region.
Executive Commentary
Dennis Schulz, CEO of ITM Power, expressed his enthusiasm for the agreement, calling it a "major milestone for ITM Power and the UK hydrogen sector." He emphasized that the company's selection for the project is a powerful vote of confidence in their technology and delivery capabilities. Schulz added that the partnership with MorGen Energy allows ITM Power to play a "critical role" in bringing the POSEIDON platform to life, cementing green hydrogen's importance in the ongoing energy transition.
The rapid progress of the project highlights the commitment of both ITM Power and MorGen Energy to accelerating the deployment of green hydrogen infrastructure. This partnership signals a major step towards the project's Final Investment Decision and demonstrates the growing momentum of green hydrogen in the UK's energy transition strategy.
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