Home ESG UK Government Shortlists Green Hydrogen Projects, backed by Schroders Greencoat, for Funding

UK Government Shortlists Green Hydrogen Projects, backed by Schroders Greencoat, for Funding

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Three projects being developed by Green Hydrogen Company (GHECO), a joint venture formed earlier this year by Schroders Greencoat and Carlton Power, have been progressed to bilateral negotiations in the first hydrogen allocation round (HAR1) of the UK Government’s Net Zero Hydrogen Fund.

The projects, each originated by Carlton Power,  represent part of GHECO’s initial development plan as Schroders Greencoat works with Carlton Power to accelerate the development of green hydrogen projects in the UK, and are among 17 selected by the UK Department of Energy Security & Net Zero for bilateral negotiations and further assessment as part of HAR1.

They are located in Trafford in Greater Manchester, Barrow-in-Furness in Cumbria, and Langage, near Plymouth in Devon; each has secured planning consent. The green hydrogen produced will be used for industrial and manufacturing companies in the surrounding areas, helping decarbonise their operations. They will also have additional capacity to supply hydrogen to other local businesses and transport operators.

Schroders Greencoat and Carlton Power announced the formation of the GHECO joint venture earlier this year, with the ambition to build a project portfolio in the UK of 500 MW by 2030. As part of the joint venture, Carlton Power will manage the development, construction and operation of current and future green hydrogen projects, with Schroders Greencoat leading on the financing of the projects and leveraging its UK renewable energy expertise.

The Government’s Net Zero Hydrogen fund is intended to provide crucial funding to help meet the UK’s ambition of 10GW low-carbon hydrogen production by 2030 and net zero by 2050. The Department for Energy Security and Net Zero will be awarding contracts totalling up to 250MW of capacity as part of HAR1, in line with its shorter-term ambition of 1GW of electrolytic hydrogen production capacity in operation or construction by 2025.

Related Article: Schroders Increases Accessibility of Global Sustainable Food and Water Fund to UK Investors

Government contracts are expected to be awarded in Q4 2023, with the Trafford, Barrow and Langage projects targeted to enter commercial operation in 2025.

James Samworth, Partner and co-head of Schroders Greencoat’s Energy Transition team, said:

“We are pleased that Carlton Power’s three projects have made the final 17 shortlisted in the first round of allocations of the government’s Net Zero Hydrogen Fund, and we will be working closely with Carlton to bring them into commercial operation. Green hydrogen is set to play a critical role in the UK’s energy transition and our proposed projects have the potential to significantly contribute to the government’s ambitious hydrogen commitments. Schroders Greencoat is well placed to pioneer green hydrogen production in the UK, with a track record as one of the UK and Europe’s leading and longest investors in renewable energy infrastructure.”

Keith Clarke, Founder and CEO of Carlton Power said:

“We welcome the Government’s HAR1 announcement. The shortlisting of our Phase 1 green hydrogen projects is testament to the hard work of our team over recent years and has benefited hugely from our partnership with Schroders Greencoat to form GHECO, as well as the support of local stakeholders and local business communities.” 

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