Carlton Power and Schroders Greencoat have joined forces to develop, build and operate green hydrogen production plants in the UK.
Their new joint venture, called Green Hydrogen Energy Company (GHECO), aims to accelerate the development of green hydrogen projects in the UK and is targeting a project portfolio of 500MW by 2030.
The first projects in GHECO’s portfolio are intended to be Trafford in Greater Manchester, Barrow-in-Furness (Cumbria) and Langage, near Plymouth (Devon).
In March 2023, these three schemes, all originated and developed by Carlton Power, were shortlisted by the UK Department for Energy Security & Net Zero (DESNZ) to receive financial support from the government’s Hydrogen Business Model / Net Zero Hydrogen Fund in the first Hydrogen Allocation Round (HAR1).
The partners are making an initial funding commitment of £200m from funds managed by Schroders Greencoat to build these schemes and future projects within Carlton’s project pipeline.
Within GHECO, Carlton Power will manage the development, construction and operation of green hydrogen projects, with Schroders Greencoat leading on the financing of the projects.
Carlton Power is aiming to secure final agreements with DESNZ for the Trafford, Barrow and Langage projects before the end of 2023 and plans to submit further sites in Hydrogen Allocation Round 2 (HAR2) of the government’s Hydrogen Business Model / Net Zero Hydrogen Fund.
The Trafford, Barrow and Langage projects are planned to enter commercial operation in 2025, with HAR2 projects starting operations in 2026.
Each site will supply green hydrogen to local industrial and manufacturing companies wishing to decarbonise their operations and all will have the potential to supply hydrogen to other businesses in the area, in addition to local transport operators.
Founder and chief cxecutive of Carlton Power Keith Clarke said: “We are delighted to be joining forces with Schroders Greencoat to develop a significant green hydrogen portfolio in the UK.
“The decision by Schroders Greencoat, one of the foremost investors in renewable energy in UK and Europe, underlines the strength and quality of Carlton’s projects and our team, as well as confidence in our local development strategy and our decision to work with blue-chip industry off-takers, such as Kimberly-Clark.
“We want GHECO to be the leading green hydrogen production company in the UK.”
Partner and co-head of Schroders Greencoat’s Energy Transition team James Samworth, added: “We are aiming for GHECO to become one the UK’s most ambitious hydrogen investment platforms.
“Hydrogen is a huge opportunity and will play a centrally important part in the energy transition.
“This partnership provides the perfect platform for us to enter the space, accelerate the development of green hydrogen projects here in the UK, and provide investors with access to this growing industry.”