ITM Power has signed a supply agreement and binding heads of terms for a long-term services agreement with MorGen Energy for the 20MW West Wales Hydrogen project in Milford Haven.

The development is part of the UK Government's Hydrogen Allocation Round 1 (HAR1) programme and is seen as a key milestone towards the project’s Final Investment Decision (FID). Groundbreaking is expected before the end of the year, with permits secured and commercial terms close to completion.

The project will use ITM Power's POSEIDON 20MW modular electrolyser platform, one of two UK projects announced on 17 June where the company was selected as electrolyser supplier. The facility, located on the former Milford Haven Refinery site, will supply green hydrogen to industrial clusters in Milford Haven, Port Talbot, and across Wales, as well as support green transport initiatives.

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Dennis Schulz, CEO of ITM Power, said: "This contract marks a major milestone for ITM Power and the UK hydrogen sector. Selection for the West Wales Hydrogen Project demonstrates confidence in our technology, delivery capability, and the critical role green hydrogen plays in the energy transition. We are proud to be partnering with MorGen Energy to bring POSEIDON to life in a project of national significance."

Werner Lieberherr, CEO of MorGen Energy, said: "The West Wales Hydrogen Project is a cornerstone of our vision for a cleaner, more resilient energy future for Wales and the UK. Working with ITM Power’s world-class electrolyser technology allows us to deliver not only a pioneering energy project, but also an economic catalyst – creating high-value jobs, strengthening supply chains, and positioning Wales at the forefront of the green hydrogen economy. Guided by a purpose-led and performance-driven approach, we are committed to ensuring this partnership delivers both environmental impact and lasting prosperity for the communities we serve."