ITM Power signs supply deal for West Wales Hydrogen Project

(Sharecast News) - ITM Power announced the signing of a supply agreement and binding heads of terms for a long-term services deal with MorGen Energy on Wednesday, for the 20MW West Wales Hydrogen project in Milford Haven, marking a key step towards construction. The AIM-traded firm said the project, part of the UK government's Hydrogen Allocation Round 1 (HAR1), would deploy its 20MW modular 'POSEIDON' electrolyser platform.

With permits secured and commercial terms close to finalisation, the project was expected to reach final investment decision before year-end and begin construction shortly thereafter.

"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," said ITMM chief executive Dennis Schulz.

"We are proud to be partnering with MorGen Energy to bring POSEIDON to life in a project of national significance."Located on the former Milford Haven Refinery site, the plant would supply "green" hydrogen to industrial clusters in Milford Haven, Port Talbot and other sites across Wales, as well as support green transport initiatives.

It has secured funding from the Department for Energy Security & Net Zero under HAR1.

"The West Wales Hydrogen Project is a cornerstone of our vision for a cleaner, more resilient energy future for Wales and the UK," commented Werner Lieberherr, CEO of MorGen Energy.

"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."

At 1045 BST, shares in ITM Power were up 3.9% at 66.6p.

Reporting by Josh White for Sharecast.com.