Carlton Power and Schroders Greencoat have formed a strategic alliance, pooling their resources to establish, construct, and manage green hydrogen production facilities throughout the United Kingdom.
Their collaborative venture, known as the Green Hydrogen Energy Company (GHECO), has set its sights on expediting the advancement of green hydrogen initiatives in the UK, with a target of achieving a project portfolio of 500MW by 2030.
GHECO's initial projects are slated to be located in Trafford (Greater Manchester), Barrow-in-Furness (Cumbria), and Langage (Devon), with Carlton Power having originated and developed all three schemes. Notably, these projects 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 during the first Hydrogen Allocation Round (HAR1) in March 2023.
To fund the construction of these schemes as well as future projects in Carlton's pipeline, Schroders Greencoat and Carlton Power have committed an initial funding amount of £200m from Schroders Greencoat-managed funds.
Within GHECO, Carlton Power will oversee the development, construction, and operation of green hydrogen projects, while Schroders Greencoat will take the lead in financing these ventures.
Carlton Power aims to finalize agreements with DESNZ for the Trafford, Barrow, and Langage projects by the end of 2023. Additionally, they plan to submit further green hydrogen projects in the second Hydrogen Allocation Round (HAR2) of the government's Hydrogen Business Model/Net Zero Hydrogen Fund.
Commercial operations are expected to commence in 2025 for the Trafford, Barrow, and Langage projects, while HAR2 projects are projected to begin operations in 2026.
Each project will supply green hydrogen to local industrial and manufacturing companies seeking to decarbonize their operations. Furthermore, there is potential for these projects to supply hydrogen to other businesses in the vicinity, including local transportation operators.
Keith Clarke, Founder & Chief Executive of Carlton Power, expressed enthusiasm for the collaboration, stating, “We are thrilled to join forces with Schroders Greencoat to develop a significant green hydrogen portfolio in the UK. The decision by Schroders Greencoat, a prominent investor in renewable energy within the UK and Europe, demonstrates the robustness and quality of Carlton's projects, our team, as well as the confidence in our local development strategy and our choice to partner with renowned industry off-takers such as Kimberly-Clark. Our vision is for GHECO to become 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 sentiments, saying, “Our aim is for GHECO to emerge as one of the UK's most ambitious hydrogen investment platforms. Hydrogen represents an enormous opportunity and will play a pivotal role in the energy transition. This partnership provides an ideal foundation for us to enter this space, expedite the development of green hydrogen projects in the UK, and offer investors access to this burgeoning industry.”
