United Kingdom – Carlton Power and Schroders Greencoat have joined forces to establish the Green Hydrogen Energy Company (GHECO) and drive the development of green hydrogen projects in the UK.
With a target of building a project portfolio of 500 MW by 2030, the partnership aims to contribute significantly to the UK’s hydrogen production, energy security, and Net Zero ambitions.
The initial projects in GHECO’s portfolio include Trafford in Greater Manchester, Barrow-in-Furness in Cumbria, and Langage near Plymouth in Devon. These projects, shortlisted by the UK Department for Energy Security & Net Zero (DESNZ) for financial support from the government’s Hydrogen Business Model/Net Zero Hydrogen Fund, are expected to receive contracts to kickstart the low carbon hydrogen economy in the country.
DESNZ envisions these projects as catalysts for the development of up to 1 GW of electrolytic hydrogen production capacity by 2025. Carlton Power and Schroders Greencoat have committed an initial funding of £200 million to build these schemes and future projects within Carlton’s project pipeline.
Partnership
In the joint venture, Carlton Power will oversee the development, construction, and operation of current and future green hydrogen projects, while Schroders Greencoat will focus on project financing, leveraging its expertise in the UK renewable energy sector.
The aim is to secure final agreements with DESNZ for the Trafford, Barrow, and Langage projects by the end of 2023. Carlton Power also plans to submit additional green hydrogen projects in the government’s Hydrogen Allocation Round 2 (HAR2).
Commercial operations for the Trafford, Barrow, and Langage projects are expected to commence in 2025, with HAR2 projects following in 2026. Each project will supply green hydrogen to local industrial and manufacturing companies, supporting their decarbonization efforts. Additionally, there is potential for supplying hydrogen to other businesses and local transport operators in the respective areas.
The partnership between Carlton Power and Schroders Greencoat represents a significant step forward in the UK’s transition to a low carbon future. By investing in green hydrogen production, the country can diversify its energy sources, reduce greenhouse gas emissions, and achieve its Net Zero goals. As these projects come to fruition, they will play a crucial role in supporting industries and communities in their decarbonization journey, fostering a cleaner and more sustainable economy.
