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MILFORD HAVEN: Former Puma fuel terminal to shut down commercial operations at the end of December

The former Puma Energy fuel terminal in Milford Haven will stop its commercial operations at the end of December.

Its owner, Impala Terminals, says it tried and failed to land a new contract for the site, and has entered a formal consultation with the staff affected.

The company said it had tried to avoid the closure: “We have worked hard to avoid this, but sadly there is no economic alternative.”

It has not given a number for the jobs affected.

A wind-down of up to two years after December

The site will not close overnight. Once commercial work ends, Impala says it will begin “a demobilisation and decommissioning transition period over the next 18 to 24 months”.

Some staff will stay on for that work, the firm added: “We will retain a core number of employees for this work during this period.”

It put the decision down to “the wider global geopolitical backdrop, fuel market economics, and customer demands”.

A former refinery site, and a fire in July

The terminal sits on the site of a former oil refinery at Robeston West, storing and distributing petroleum products. It operated as the Puma Energy terminal before it became part of Impala.

Storage tanks at the Impala terminal at Robeston West (Image: H2 Energy Europe Ltd)

In July, a fire at the terminal involving a decommissioned oil tank led to a major incident being declared, later stood down.

MorGen hydrogen plant not affected, says Impala

Impala says the decision does not affect the MorGen Energy green hydrogen scheme planned for the site.

MorGen said in March that the £50m plant would be running by early 2028, producing about 2,000 tonnes of low-carbon hydrogen a year.

The developers said it would create 60 jobs during construction and up to 10 permanent roles once complete, and that it is backed by a 15-year government revenue guarantee.

What next for the rest of the site

Impala says it has launched a review of what the rest of the site could be used for.

Its spokesperson said the company was “conscious of the history of the site and [has] launched a review to assess future uses for it”.

The review “does not solve the present issue”, Impala admitted, but “aims to preserve the site’s legacy for future generations”.

Related stories from Swansea Bay News

MILFORD HAVEN: £50m hydrogen green energy ‘revolution’ to create 70 local jobs
The MorGen green hydrogen plant planned for the Impala site.

MILFORD HAVEN: Major incident declared as fire sends black smoke over town
July’s fire at the terminal.

More Milford Haven news
Everything from the town and the Haven waterway.

#GreenHydrogen #ImpalaTerminals #jobs #MilfordHaven #morgenEnergy #oilRefinery #redundancy

MILFORD HAVEN: £50m hydrogen green energy ‘revolution’ to create 70 local jobs

Construction is expected to kick off this year on the hydrogen-generating facility, in what is being described as a “defining milestone” for the West Wales energy sector.

The plant, developed by MorGen Energy, will be built on the site of a former oil refinery at the Impala terminal, previously Puma Energy.

MorGen say this “significant investment” is poised to create 60 jobs during the construction phase alone, providing a major boost to the local economy.

The company say that the new plant will be up and running by early 2028, and is set to produce approximately 2,000 tonnes per annum of low-carbon hydrogen, compliant with the UK’s Low Carbon Hydrogen Standard.

Once completed, the facility will support up to 10 permanent, highly skilled roles, according to the developers.

The hydrogen will be used across a broad range of applications, including port decarbonisation, industrial heating, manufacturing and chemical feedstock.

The planned facility will be located at the Impala terminal in Milford Haven, utilizing existing industrial infrastructure. (Image: MorGen Energy)An artist’s impression showing the modern architectural design of the proposed £50 million green hydrogen facility in Milford Haven. (Image: MorGen Energy)

The West Wales Hydrogen project is among the first in the UK to receive the green light from investors, backed by a 15-year government revenue guarantee.

Welsh Secretary Jo Stevens hailed the project, stating it will “create jobs and help grow the Welsh economy.”

Luciana Ciubotariu, CEO of Celtic Freeport, welcomed the move, noting its importance for the local tax site.

“MorGen Energy’s decision is another major step forward for the hydrogen economy in South West Wales,” she said.

Ms Ciubotariu added that projects within the Milford Haven Tax Site demonstrate how the Celtic Freeport is accelerating decarbonisation while creating high-value jobs.

Port of Milford Haven, which is part of the Celtic Freeport, has been announced as the home for the new hydrogen facility. (Image: Port of Milford Haven)

The 20MW plant is expected to produce approximately 2,000 tonnes of low-carbon hydrogen annually, powered primarily by UK windfarms.

This hydrogen will be used to decarbonise heavy industry, including port operations, industrial heating, and manufacturing across South Wales.

The plant will produce hydrogen through electrolysis, a process that splits water into hydrogen and oxygen using renewable electricity.

Sheffield-based ITM Power has been selected to supply the electrolyser system, providing a further boost to UK manufacturing and technology.

This clean energy process is expected to achieve more than 15,000 tonnes of CO2e emissions savings annually, according to the developers.

Energy Minister Michael Shanks emphasised the importance of hydrogen in the UK’s energy strategy.

He said backing hydrogen was “crucial in de-carbonising industry, driving investment, boosting our energy security and creating hundreds of jobs in our industrial heartlands.”

Shanks added that this investment demonstrates how Wales is embracing the clean energy transition, creating new opportunities for local communities.

Werner Lieberherr, CEO of MorGen Energy, described the investment decision as a “defining milestone” for the company and the UK hydrogen sector.

He highlighted that it shows green hydrogen projects in the UK can be delivered as “bankable infrastructure investments.”

The project’s location within the Celtic Freeport area means it will benefit from existing infrastructure in Milford Haven, including 63 storage tanks and a comprehensive network of pipelines.

This development marks a significant step forward for renewable energy in West Wales, positioning the region at the forefront of the green technology revolution.

Local contractors are expected to play a key role in the construction, providing a direct boost to the Welsh economy and creating further opportunities.

#CelticFreeport #energy #energyTransition #GreenHydrogen #jobs #MilfordHaven #morgenEnergy #renewables #trafigura #westWales