UK Government awards landmark contracts to Schroders Greencoat-backed green hydrogen projects

Schroders Greencoat, the specialist renewables manager of Schroders Capital, today announces that three green hydrogen projects which it is involved in have been awarded contracts for hydrogen production by the UK Government, following the conclusion of the first hydrogen allocation round (HAR1).

These projects, which will be delivered by Green Hydrogen Energy Company (GHECO), a joint venture between Schroders Greencoat and Carlton Power, are set to provide a significant contribution to the UK’s ambitious green hydrogen targets.

GHECO is Schroders Greencoat’s first hydrogen investment, marking its entrance into a sector which is set to play a critical role in the UK’s energy transition. Located in Manchester, Cumbria and Devon, GHECO’s projects directly support the UK Government’s target of deploying up to 10GW of low-carbon hydrogen production capacity by 2030, representing how companies and investors can lead in contributing to energy transition goals.

The projects are targeting commercial operation in the first half of 2026 and delivering impact through the decarbonisation of local industries. Offtaker customers are in place for the projects, through which partners will agree to purchase green hydrogen on an ongoing basis.

Kimberly Clark, the manufacturers of Andrex® and Kleenex®, will be an offtaker for the Barrow Green Hydrogen project, with the supply of clean hydrogen to be used at its manufacturing facility to support the decarbonisation of industrial operations. The projects also have the potential to supply hydrogen to other businesses, including local transport operators.

Contracts for Difference have been awarded by the UK Government for the three projects. As part of GHECO, Carlton Power, the UK independent energy infrastructure development company, will oversee the development, construction and operation of the projects. Schroders Greencoat will lead on the financing of the projects, and leverage its expertise in renewable energy investment. GHECO aims to build a hydrogen project portfolio in the UK of 500MW by 2030.

Peter Harrison, Schroders Group Chief Executive, said: “These hydrogen projects are prime examples of how private capital can help meet public goals, with the successful collaboration of business and government being essential for the UK to reach net zero.

“As the transition to renewable energy continues at pace, Schroders is proud to be at the leading edge, supported by Schroders Greencoat’s strong track record in the renewables sector.”

James Samworth, Partner and Co-Head of Schroders Greencoat’s Energy Transition team, said: “We are pleased that all three hydrogen projects have received Contracts for Difference from the UK Government. Hydrogen has the potential to provide robust, reliable and carbon-free returns for investors, allowing us to provide yet another avenue through which capital can contribute to decarbonisation. We hope for GHECO to house one of the most significant green hydrogen portfolios in the UK, and we’re looking forward to continuing to work closely with Carlton Power as we bring these projects to life.”

Keith Clarke, Founder and CEO of Carlton Power said: “We are delighted with today’s announcement from the Department for Energy Security and Net Zero. Securing contracts for each project – totalling 55MW of capacity and an investment of c£100m, and each with planning consent – is a major achievement and places Carlton Power and Schroders Greencoat, through our GHECO joint venture, among the leading British companies that are helping to build the hydrogen economy in the UK.”

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