Green Hydrogen: ITM Power’s 20MW POSEIDON Electrolyser for West Wales Project

ITM Power and MorGen Energy locked in a binding supply agreement for ITM Power’s POSEIDON 20MW modular electrolyser platform. Backed by funding from the UK Department for Energy Security & Net Zero through its Hydrogen Allocation Round 1 (HAR1) programme, the West Wales Hydrogen Project at Milford Haven will harness renewable electricity to churn out green hydrogen for nearby industrial hubs and transport fleets.

Deal Overview

This agreement locks in a long-term partnership between ITM Power plc and MorGen Energy for a 20 MW electrolyser setup at Milford Haven in West Wales. The main highlights are:

• A modular deployment of the POSEIDON Electrolyser Platform, built for round-the-clock operation and flexible scaling.
• Seamless integration with existing power grids and infrastructure to feed hydrogen to hubs in Milford Haven and Port Talbot.
• Backed by the UK Government’s HAR1 scheme, managed by DESNZ.
• Aiming for a final investment decision (FID) by the end of 2025, with construction set to kick off soon after.

It’s a clear vote of confidence in homegrown hydrogen technology and the UK’s delivery chops.

Technology at Work

At the heart of this project is the POSEIDON 20MW modular electrolyser platform, which uses Proton Exchange Membrane (PEM) technology to split water into hydrogen and oxygen via electrolysis powered by renewable energy. Thanks to its modular stacks, you can dial capacity up or down in neat increments—a huge perk when juggling grid fluctuations or industrial demand. Down at Milford Haven, its high efficiency and lightning-fast response times will keep a steady stream of green hydrogen flowing for fuel cells, direct industrial use or conversion into synthetic fuels.

Strategic & Policy Context

This project’s a real flagship for the UK’s push to supercharge its hydrogen infrastructure over the coming decade. Under its Net Zero commitments, the government has funnelled cash into key hubs through DESNZ’s HAR1 allocations. Getting Milford Haven—which once leaned heavily on oil and gas terminals—fully on board with low-carbon solutions is a big win for sustainable energy and industrial decarbonization in sectors like chemicals, refining and heavy transport.

It also couldn’t come at a better time: global demand for electrolysers is surging. By choosing a homegrown supplier, the UK cements its spot in the European electrolyser supply chain while beefing up domestic manufacturing and R&D muscle.

Regional Impact

Milford Haven, a port town of roughly 13,900 residents, has anchored the UK’s energy industry for decades. Its deep-water terminals once handled crude oil and LNG, but the West Wales Hydrogen Project is steering it toward sustainable energy. Local industries—from refineries to petrochemicals—can start cutting their carbon footprints by blending in green hydrogen. Even buses and trucks on regional roads could swap diesel for hydrogen, slashing tailpipe emissions.

There’s also a jobs boost: building, operating and maintaining the electrolyser will create skilled roles on site, and spin-off opportunities in engineering, logistics and beyond are set to follow.

Market Implications

This deal sends a big message to investors and policymakers: large-scale, government-backed hydrogen projects can move swiftly from tender to signed contract. For the electrolyser market, it proves modular PEM systems are bankable tech, not just lab showcases. Analysts say that as prices keep dropping—thanks to learning curves and tighter supply chains—green hydrogen production costs will edge closer to grey hydrogen benchmarks, cracking open new markets in steelmaking, ammonia and heavy transport.

What’s more, the West Wales Project could serve as a blueprint for other legacy energy regions: grab public funding, partner with seasoned developers and slot modular electrolysers into existing grid or industrial networks.

Looking Ahead

With commercial terms almost wrapped up, both firms are aiming for a final investment decision by late 2025 and breaking ground almost straight away. If all goes to plan, the first streams of green hydrogen could be flowing by 2027. For MorGen Energy and ITM Power, this isn’t just proof they can hit their marks—it cements their spot at the forefront of the UK’s emerging hydrogen economy.

About ITM Power plc

ITM Power plc is a Sheffield-based innovator founded in 2000. Public on the AIM market since 2004, it specialises in crafting modular electrolyser systems powered by PEM tech. Its POSEIDON platform has quickly become a go-to for utility-scale projects and industrial clusters across the UK’s green hydrogen scene.