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Enterprise

Go-ahead for first major green hydrogen plant in Wales

RWE has secured planning consent for its Pembroke Green Hydrogen plant

How RWE's Pembroke Green Hydrogen plant will look.

Energy giant RWE has secured planning consent for Wales’ first major green hydrogen facility. The 100 megawatt electrolyser plant, on land adjacent to Pembroke Power Station, will include a direct pipeline connection to nearby industry.

The project is anticipated to reduce carbon emissions by approximately 93,000 tonnes annually, equivalent to removing 18,600 cars from the road every year.

RWE said that planning approval from Pembroke County Council is a critical step towards the realisation of the Pembroke Green Hydrogen plant. It also lays the foundation for the next phases of the project, including securing government funding and finalising financial investment decision.

RWE said the plant is scheduled to become operational in 2027 or 2028. During its two year construction phase around 200 jobs will be created. While a small number of roles will be created once operational, the plant’s biggest impact will be in supporting firms to decarbonise in the drive towards net zero.

RWE said at this stage it couldn’t disclose the capital investment required, but said it would partly be self finance and through 15-year hydrogen production contracts that function similarly to contracts-for-difference in providing revenue support to bridge the cost gap between hydrogen production and market price.

Sopna Sury, chief operating officer for hydrogen at RWE Generation, said: “It is fantastic to have achieved this significant milestone. We would like to thank the collaborative and proactive approach of the Pembrokeshire County Council planning team and all the statutory consultees who together supported a smooth and efficient planning process.

"With this approval, Wales is positioned at the forefront of the green hydrogen revolution, placing hydrogen at the heart of the energy transition and driving forward innovation in renewable energy.”

“While the º£½ÇÊÓÆµ energy sector has made great progress toward decarbonisation, certain industrial processes remain dependent on fossil fuels and cannot be electrified. Green hydrogen provides a vital solution for these industries, and Pembroke Green Hydrogen represents a significant step toward achieving the º£½ÇÊÓÆµ Government’s target of 10GW of green hydrogen capacity by 2030.”