Schroders Greencoat’s hydrogen projects get UK government contracts

Schroders Greencoat, the renewables manager of Schroders Capital, has announced that three green hydrogen projects it is involved in have secured contracts for hydrogen production from the UK government, concluding the initial hydrogen allocation round.

The Green Hydrogen Energy Company (GHECO), a Schroders Greencoat and UK independent energy infrastructure development company Carlton Power joint venture, will execute these projects in Manchester, Cumbria and Devon. 

Positioned to contribute to the UK’s ambitious green hydrogen goals, these ventures align with the UK government’s aim to deploy 10GW of low-carbon hydrogen production capacity by 2030. According to the asset manager, operating commercially by H1 2026, the projects will aid local industry decarbonisation. 

The projects have secured offtaker customers, with partners committing to the ongoing purchase of green hydrogen.  Multinational personal care corporation Kimberly Clark has committed to the Barrow Green Hydrogen project for Andrex and Kleenex production, fostering industrial decarbonisation. The projects also have the potential to supply hydrogen to other businesses, including local transport operators. 

Peter Harrison, chief executive, Schroders Group, commented: “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.”

The three projects have received Contracts for Difference – the UK government’s primary scheme for supporting new low-carbon power infrastructure. Carlton Power, a UK-based independent energy infrastructure development company, will manage project development, construction, and operation, while Schroders Greencoat will spearhead project financing. GHECO aims to establish a 500MW hydrogen project portfolio in the UK by 2030.

James Samworth, partner and co-head, Schroders Greencoat’s energy transition team, added: “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.”

© 2023 funds europe

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