New joint venture platform GHECO aims to deliver 500MW of green hydrogen projects across the UK using development expertise from Carlton and financing from Schroders Greencoat.
Energy infrastructure specialist Carlton Power has announced it is joining forces with investment manager Schroders Greencoat to roll-out the construction and operation of a series of green hydrogen projects across the UK.
The companies have formed a new joint venture platform called Green Hydrogen Energy Company (GHECO), which has the aim of building a UK project portfolio boasting 500MW of capacity by 2030, the companies said.
The venture is backed by an initial funding commitment of £200m from funds managed by Schroders Greencoat – the clean energy investment arm of the asset management giant created through its 2022 acquisition of Greencoat Capital – to build out Carlton’s hydrogen development pipeline.
Carlton Power will manage the development, construction, and operation of current and future green hydrogen projects with Schroders Greencoat leading the financing of the projects.
The government has previously announced plans to deliver 10GW of low carbon hydrogen capacity by 2030, which GHECO said it would contribute to “substantially” while also helping to cement the UK’s leadership position in hydrogen production.
The first projects in GHECO’s portfolio are set to be a series of green hydrogen developments in Trafford in Greater Manchester, Barrow-in-Furness in Cumbria, and Langage near Plymouth in Devon.
In March 2023 these three schemes were shortlisted by the UK Department for Energy Security and Net Zero (DESNZ) to receive financial support from the government’s Hydrogen Business Model in the first Hydrogen Allocation Round (HAR1).
On the government website DESNZ said it launched the Hydrogen Business Model with a view to kick starting the low hydrogen economy across the UK, helping to meet the national ambition of up to 1GW of electrolytic hydrogen production capacity in operation or construction by 2025.
Carlton Power said that it is working with DESNZ to secure final agreements for the Trafford, Barrow, and Langage projects before the end of 2023, as well as having plans to submit further green hydrogen projects for support through the Hydrogen Allocation Round 2 (HAR2) of the government’s Hydrogen Business Model.
The Trafford, Barrow, and Langage projects are planned to enter commercial operation in 2025 with HAR2 projects estimated to start operation in 2026.
GHECO said each project will supply green hydrogen to local industrial and manufacturing companies that are looking to decarbonise their operations, as well as having the potential to supply hydrogen to other businesses in the area and local transport operators.
“We are delighted to be joining forces with Schroders Greencoat to develop a significant green hydrogen portfolio in the UK,” said Keith Clarke, founder and chief executive of Carlton Power.
“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.”
James Samworth, partner and co-head of Schroders Greencoat’s Energy Transition team, echoed Clarke’s ambitions for GHECO to become “one of the UK’s most ambitious hydrogen investment platforms.”
“Hydrogen is a huge opportunity and will play a centrally important part in the energy transition,” he added.
“This partnership provides the perfect platform for us to enter the space, accelerate thedevelopment of green hydrogen projects here in the UK, and provide investors with access to this growing industry.”
Read the most up to date Fuel Cell and Hydrogen Industry news at FuelCellsWorks
