A MAJOR new hydrogen production facility worth around £50 million is expected to begin construction in Milford Haven later this year, marking another step in Pembrokeshire’s transition towards low-carbon energy.

The West Wales Hydrogen project, planned for land at the Impala Terminal within the port of Milford Haven, will transform part of a former oil refinery site into one of the UK’s early commercial-scale hydrogen production facilities.

Developers say the plant could create around 60 jobs during construction and support about ten permanent roles once operational, with commissioning currently targeted for early 2028.

The project is being led by MorGen Energy, a Zurich-based company founded in 2021 to develop large-scale green hydrogen projects across Europe.

Built at former refinery site

The facility will be located at the Impala Terminal site, formerly operated by Puma Energy, which historically handled refined oil products.

Milford Haven has long been known as the UK’s largest energy port, home to major LNG import terminals and oil infrastructure. Supporters of the hydrogen scheme say the new plant will help the port shift gradually towards cleaner energy technologies while making use of existing industrial infrastructure.

The project also sits within the Celtic Freeport zone, an area covering Milford Haven and Port Talbot that aims to attract investment into low-carbon industries, advanced manufacturing and renewable energy.

MorGen says the plant will benefit from the port’s existing storage facilities, energy connections and shipping infrastructure.

How the hydrogen will be produced

The proposed plant will produce hydrogen using electrolysis, a process which splits water into hydrogen and oxygen using electricity.

When powered by renewable energy, this method produces low-carbon or “green” hydrogen, which can be used as an alternative fuel in heavy industry.

Once fully operational, the facility is expected to produce around 2,000 tonnes of hydrogen per year. Developers estimate this could cut more than 15,000 tonnes of carbon dioxide emissions annually, compared with conventional fossil fuel-based hydrogen production.

Electricity used to power the plant is expected to come largely from renewable energy sources, particularly wind farms.

Hydrogen produced at the facility could be used for several industrial purposes, including:

• industrial heating
• manufacturing processes
• heavy transport
• decarbonising port operations

Government backing

The project has received backing through the UK Government’s Hydrogen Allocation Round (HAR), a funding programme designed to support the development of low-carbon hydrogen production across the country.

The scheme aims to help the UK develop a domestic hydrogen industry capable of reducing emissions from sectors that are difficult to electrify.

Welsh Secretary Jo Stevens said the project showed Wales was playing a leading role in the shift to cleaner energy.

She said the investment would help create jobs while supporting economic growth.

UK Energy Minister Michael Shanks said hydrogen would play a crucial role in cutting industrial emissions and strengthening energy security.

Industrial uses for hydrogen

Energy experts say hydrogen is particularly important for sectors that require extremely high temperatures, such as steel, glass, ceramics and heavy manufacturing, where electrification alone may not be practical.

Professor Sara Walker, an energy specialist at the University of Birmingham, said hydrogen could allow these industries to reduce their reliance on fossil fuels.

She explained that many industrial processes already use hydrogen, but most of it is currently produced from natural gas. Producing hydrogen using renewable electricity instead could significantly reduce carbon emissions.

A growing energy hub

Milford Haven has increasingly been identified as a key location for the UK’s emerging hydrogen economy.

The port already handles large volumes of energy imports, including LNG, and its industrial landscape has attracted several proposals linked to hydrogen, floating offshore wind and carbon capture.

Supporters argue the new hydrogen plant could help position Pembrokeshire at the centre of Britain’s clean energy transition, while maintaining the area’s historic role as a major energy hub.

MorGen Energy chief executive Werner Lieberherr described the project as a major milestone for both the company and the UK hydrogen sector.

He said it demonstrated that green hydrogen projects in the UK were becoming viable long-term infrastructure investments.

If delivered on schedule, construction could begin later this year, with the facility expected to start producing hydrogen by 2028.

WORKERS in Wales say they now need to earn around £42,000 a year to live comfortably – some £6,000 more than the region’s average salary of £36,000, according to new research.

The findings, based on a survey of 5,000 UK professionals carried out as part of the annual salary guide produced by recruitment firm Reed, highlight the growing financial pressure facing employees across Wales.

Around 15% of workers in Wales said they were unhappy with their pay, with a third (33%) citing the rising cost of living as the main reason salaries no longer feel sufficient.

Becky Hole, Regional Director at Reed, said the results underline a widening gap between earnings and everyday living costs.

“Wales has always had a resilient workforce, but these findings highlight a growing disparity between what people earn and what they need to feel secure,” she said.

“The rising cost of essentials is biting hard, and for many people in the region the gap between income and expenditure is becoming increasingly difficult to bridge.”

The survey also suggests many households are left with very little spare income once essential bills are paid.

More than a quarter of workers in Wales (28%) said they have £100 or less remaining each month after covering necessities such as housing, food, and utilities. A further 9% said their entire salary is consumed by essential costs, leaving them with no disposable income at all.

On average, workers in Wales reported having around £601 per month remaining after essential bills.

The financial squeeze is also influencing career decisions. Reed’s research indicates that employees are becoming increasingly cautious about changing jobs, prioritising stability over risk during uncertain economic times.

“We are seeing a distinct trend in the Welsh job market where stability is becoming the new currency,” Ms Hole added.

“Employees are less inclined to take risks on new roles unless the financial reward is substantial. The data suggests people are prioritising secure employment and strong benefits packages over the unpredictability of changing jobs. For many, it is a time of consolidation rather than speculation.”

The research suggests employers hoping to recruit staff from competitors would need to offer an average pay increase of £10,729 to tempt workers to move. By contrast, an average pay rise of £3,532 would be enough to persuade many employees to stay with their current employer.

More than a quarter of respondents (27%) also said they would not be willing to give up workplace benefits in exchange for a higher salary.

Ms Hole said employers need to consider the wider package they offer staff if they want to attract and retain talent.

“For employers in Wales, this is a wake-up call to look at the total value proposition they offer,” she said.

“It is not just about the salary figure anymore – it is about providing a safety net. Benefits that support financial wellbeing, mental health, and work-life balance are becoming critical tools for retention and recruitment. Businesses that can offer this kind of holistic support will be the ones best placed to keep their talent during these challenging times.”

VISIT PEMBROKESHIRE will host a highly anticipated political Q&A session at its upcoming Tourism Summit 2026, giving tourism businesses the opportunity to engage directly with candidates standing in the forthcoming Senedd elections this May.

As Wales’ first and only hybrid Destination Management Organisation, Visit Pembrokeshire brings together both public and private sector partners to support and develop the region’s visitor economy. This collaborative approach will be reflected in the format of this year’s summit, which combines leading industry speakers with a dedicated political panel discussion.

The Q&A session will provide a platform for tourism operators and industry professionals to raise key issues affecting the sector, while offering political candidates the opportunity to outline how their respective parties plan to support Pembrokeshire’s most significant economic driver.

Tourism businesses across the county continue to navigate a changing policy landscape and wider economic pressures. These include the 182-day rule for self-catering accommodation, rising operating costs, the proposed Visitor Levy, and increasing regulatory and licensing requirements.

For many operators, these pressures come alongside ongoing challenges such as recruitment difficulties, seasonality, energy costs and the need to maintain year-round viability for the many small and family-run businesses that form the backbone of Pembrokeshire’s visitor economy and rural communities.

The session will explore how the sector can work collaboratively with policymakers to support a thriving visitor economy while delivering Visit Pembrokeshire’s shared ten-year vision of becoming a world leader in regenerative tourism.

Neil Kedward, Chair of Visit Pembrokeshire’s Board of Directors, said: “Tourism is Pembrokeshire’s largest economic driver and supports thousands of local jobs, businesses and communities. With the upcoming Senedd elections, this summit provides an important opportunity for the sector to engage directly with those who may help shape the policies that affect our long-term future.

“We want our political representatives to succeed, and that means ensuring they are properly informed, connected to the businesses on the ground, and able to hear first-hand about the opportunities and challenges facing the industry. Creating space for open dialogue like this is an essential part of modern politics, particularly at a regional level where the impact of decisions is felt most directly.

“Our hope is that these conversations help build stronger understanding and partnership between tourism businesses and policymakers as we work together towards a thriving and regenerative visitor economy.”

Emma Thornton, Chief Executive of Visit Pembrokeshire, added: “The Tourism Summit is designed to bring together the people shaping the future of Pembrokeshire’s visitor economy. By inviting political candidates to hear directly from tourism businesses, we are creating an open platform for meaningful discussion about both the challenges and opportunities facing the sector.

“Pembrokeshire has an incredibly strong tourism industry, and collaboration between business, government and communities will be essential in ensuring it continues to grow in a sustainable and responsible way while achieving our shared long-term vision for the visitor economy.”

The Visit Pembrokeshire Tourism Summit 2026 will bring together tourism operators, policymakers and industry leaders from across Wales for a day of insight, discussion and networking focused on the future of the region’s visitor economy.

The event is proudly supported by Barclays, whose sponsorship reflects a shared commitment to supporting local businesses and the continued growth of Pembrokeshire’s visitor economy.

Tickets are available now via Eventbrite.