Carlton Power and Schroders Greencoat have formed a partnership to collaborate on the establishment, construction, and management of green hydrogen production facilities in the United Kingdom.
Their joint venture, known as the Green Hydrogen Energy Company (GHECO), aims to expedite the progress of green hydrogen initiatives within the UK. Their objective is to develop a project portfolio of 500MW in the UK by 2030.
The initial projects in GHECO’s portfolio are anticipated to be located in Trafford (Greater Manchester), Barrow-in-Furness (Cumbria), and Langage (Devon) regions.
These projects, which were originated and developed by Carlton Power, have been 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) in March 2023.
To construct these schemes and future projects in Carlton’s project pipeline, Schroders Greencoat and Carlton Power have committed an initial funding of £200 million from funds managed by Schroders Greencoat.
Within the GHECO joint venture, Carlton Power will oversee the development, construction, and operation of green hydrogen projects, while Schroders Greencoat will lead in financing the projects.
Carlton Power aims to finalize agreements with DESNZ for the Trafford, Barrow, and Langage projects by the end of 2023 and plans to submit additional green hydrogen projects in the Government’s Hydrogen Business Model/Net Zero Hydrogen Fund’s second Hydrogen Allocation Round (HAR2).
Commercial operations for the Trafford, Barrow, and Langage projects are scheduled to commence in 2025, while HAR2 projects are expected to start operating in 2026.
Each project will supply green hydrogen to local industrial and manufacturing companies seeking to decarbonize their operations. Additionally, they have the potential to supply hydrogen to other businesses in the vicinity, as well as local transportation operators.
Founder & Chief Executive 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, said “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.”
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