- Following securing planning permission, the UK Government backs Celtic Freeport project in first wave of hydrogen CfDs.
- The electrolysis hydrogen generation facility is projected to produce up to five tonnes of the gas a day at the former Puma Energy site in Milford Haven.
The UK Government has finalised its first subsidised Contracts for Difference (CfDs) under the Hydrogen Production Business Model, securing a strike price of £9.49 per kilogram of green hydrogen over 15 years.
One of the awarded projects is West Wales Hydrogen, a 14.2 MW Celtic Freeport initiative near Milford Haven, developed by H2 Energy and Trafigura.
The CfD scheme ensures producers receive the agreed strike price by covering the difference between this price and the market rate for grey hydrogen.
This initiative supports the UK’s commitment to green hydrogen production, aiming to drive the transition to cleaner energy. Luciana Ciubotariu, CEO of the Celtic Freeport, commented: “Celtic Freeport welcomes the development of West Wales Hydrogen at Milford Haven, which will provide vital green hydrogen to power shipping, industry and serve as a chemical feedstock across South Wales. This project highlights the versatility of green hydrogen in supporting major local businesses like Sofidel, reinforcing the region’s transition to a low carbon economy.”
Photo: West Wales Hydrogen
