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

Building work is expected to start this year and it is hoped the plant will be commissioned by early 2028.

Once operational it is expected to produce about 2,000 tonnes of low-carbon hydrogen annually for uses including industrial heating, manufacturing and de-carbonising the Milford Haven port.

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