Impala Terminals advances hydrogen pipeline project to connect green hydrogen production to Welsh industrial clusters

Impala Terminals has secured local regulatory approval to construct a 1.5km hydrogen pipeline at its Milford Haven terminal in Pembrokeshire, a development that plugs directly into MorGen Energy’s planned 20MW green hydrogen production facility and leverages the site’s existing tanks, pipelines and jetty to supply nearby industrial users.

According to the company announcement and project partners, the pipeline will connect the electrolyser plant to on‑site storage and distribution infrastructure at the terminal, formerly Puma Energy’s Milford Haven site, recently rebranded Impala Terminal, allowing hydrogen to be delivered by pipeline rather than by road or rail tankers. Impala Terminals operates a global network of liquid bulk terminals and the Milford Haven facility has around 1.4 million cubic metres of storage capacity, road and rail loading and jetty access that the project will use to minimise new civil works and speed deployment.

The West Wales Hydrogen project, led by MorGen Energy, will deploy a 20MW PEM electrolyser platform and is expected to produce about 1,865 tonnes of green hydrogen a year, avoiding roughly 15,000 tonnes of CO2 emissions annually, according to MorGen Energy’s project material. ITM Power has signed a supply and long‑term services agreement to deliver its POSEIDON 20MW modular electrolyser for the installation; the partners state the facility is due to be commissioned in 2027 and will benefit from funding awarded in the UK Government’s Hydrogen Allocation Round 1.

For industrial decarbonisation efforts across South Wales, the pipeline is positioned as a practical step to solve a persistent logistics challenge: safe, efficient movement of hydrogen from producer to consumer. By tying production directly into existing industrial clusters, chemical plants, refineries and other heavy users around Milford Haven and, eventually, further afield, the project aims to reduce reliance on road haulage, lower handling costs and provide a steady low‑carbon feedstock for processes that are hard to electrify. Project proponents point out that substituting hydrogen for natural gas or other fossil fuels in industrial applications can deliver significant CO2 reductions at scale.

The scheme sits inside a wider regional vision. The Celtic Freeport initiative has promoted Milford Haven as a strategic hydrogen hub with ambitions to attract up to £3.5 billion in hydrogen investment, and HyLine Cymru proposes a 130km hydrogen network across South Wales linking Pembroke Dock to Port Talbot. According to project materials, the 1.5km pipeline is conceived as an initial, interoperable segment that could be integrated into that longer corridor, helping to connect West Wales production to demand centres in the South Wales industrial belt.

Pembrokeshire’s offshore wind resource is highlighted by proponents as a key input for the project’s electrolyser, with floating and fixed turbines in the Celtic Sea offering a source of low‑carbon electricity to drive electrolysis. Project literature notes that combining variable renewables with on‑site electrolysis and storage converts intermittent generation into a transportable, storable fuel, improving system resilience and making better use of local renewable resource.

The Milford Haven area has a deep energy heritage, hosting refineries, liquefied natural gas terminals and major pipelines for decades, and prior work has helped de‑risk hydrogen development. Industry and public sector partners piloted hydrogen trials through the Milford Haven: Energy Kingdom initiative between 2019 and 2022, with Innovate UK and local authorities involved; those trials informed technical, safety and commercial planning for larger projects now moving ahead.

For industry stakeholders, the project offers a lower‑complexity route to access green hydrogen by using existing terminal assets and maritime links. The partners argue this reduces permitting and construction timelines, supports local supply chains, fabrication, valves and monitoring systems are being sourced from firms in South Wales and the Midlands, and creates opportunities for jobs and inward investment as part of the Celtic Freeport strategy.

While the 1.5km pipeline approval is an important milestone, the partners acknowledge further work remains: final engineering, safety case development, tie‑ins to offtakers, and the staged build‑out of regional infrastructure to scale hydrogen delivery beyond Milford Haven. According to ITM Power and MorGen Energy statements, groundworks are planned to begin ahead of the commissioning target in 2027, and discussions are ongoing to extend network connectivity to additional industrial clusters and potential transport refuelling points.

For operators and decarbonisation managers evaluating hydrogen as a low‑carbon feedstock, the Milford Haven development demonstrates a pragmatic model: co‑locate electrolysis with existing bulk storage and maritime export infrastructure, use modular electrolyser technology backed by a services agreement, and phase pipeline links to deliver predictable supply to customers while enabling future network expansion.