ITM Power Announces MorGen Energy Project Milestone, Shares Edge Higher

ITM Power (ITM.L) shares experienced a lift, trading around 0.7% higher, following the announcement of significant progress in its partnership with MorGen Energy.

The update centers on MorGen Energy’s West Wales Hydrogen project, marking a pivotal step for both companies and the UK’s green hydrogen sector.

The key development is the Final Investment Decision (FID) for MorGen Energy’s 20 MW West Wales Hydrogen project in Milford Haven. This project, supported by the UK Government’s HAR1 funding, will utilize ITM Power’s POSEIDON 20 MW core electrolysis process module.

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The plant, located at the former Milford Haven Refinery, is slated for commissioning in 2028 and anticipates producing approximately 2,000 tonnes of hydrogen annually.

Adding to the positive momentum, ITM Power has secured a ten-year Long-Term Service Agreement (LTSA) with MorGen Energy for the West Wales Hydrogen project. This agreement ensures maintenance and support for the plant’s operational phase, providing a recurring revenue stream for ITM Power and demonstrating a long-term commitment to the project’s success.

Werner Lieberherr, CEO of MorGen Energy, emphasized the project’s importance, stating, “Reaching FID on West Wales Hydrogen is a defining milestone for MorGen and the UK hydrogen sector.

This project demonstrates that green hydrogen projects in the UK can be delivered as bankable infrastructure investments when strong industrial demand is combined with a clear and stable policy framework.”

Driver Breakdown:

• Government Support: The project’s backing by the UK Government’s HAR1 funding underscores the increasing commitment to hydrogen as a key element in the nation’s decarbonization strategy.
• Strategic Location: Situated at the former Milford Haven Refinery, the plant is strategically positioned to serve industrial clusters across Milford Haven, Port Talbot, and wider Wales, ensuring robust demand for the produced hydrogen.
• Long-Term Partnership: The ten-year LTSA solidifies the partnership between ITM Power and MorGen Energy, de-risking the investment and providing a predictable revenue stream for ITM Power.

Dennis Schulz, CEO of ITM Power, stated, “The MorGen Energy West Wales project is an important milestone for green hydrogen in the UK, and we are proud that our technology will be at its core. Our partnership with MorGen Energy highlights our dedication to providing reliable, high-performance electrolysers that aid the UK’s industrial decarbonisation efforts.”