CARLTON POWER SECURES UK GOVERNMENT SUPPORT FOR ITS GREEN HYDROGEN PROJECTS
Carlton Power, one of the UK’s leading independent energy infrastructure development companies, has been successful in Round One of UK Government’s Hydrogen Allocation Round (HAR1). The company’s three projects – at Trafford in Greater Manchester, Barrow-in-Furness (Cumbria) and Langage, near Plymouth (Devon) – have been awarded financial contracts for each of the schemes from the UK Department of Energy Security & Net Zero (DESNZ). Subject to reaching Financial Investment Decisions in the early part of next year, these projects should enter commercial operation within two years.
Eric Adams, Carlton Power’s Hydrogen Projects Director said: “We are delighted with today’s announcement from DESNZ. 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 among the leading British companies that are helping to build the hydrogen economy in the UK.”
Keith Clarke, Founder and Chief Executive of Carlton Power said: “We are supporting UK industry to decarbonise their operations, supporting the UK’s efforts to reach Net Zero and we are a catalyst for green investment and jobs into the UK regions. Working with our financial partners, Schroders Greencoat, we can now work towards Final Investment Decisions for each scheme in the early part of next year and thereafter work to have the three enter commercial operation within two years.”
The three projects will replace c215GWh of natural gas and should reduce carbon emissions by c40,000 tonnes per annum from 2026. They will support local manufacturing and industrial companies to decarbonise their operations, making the transition away from fossil fuels.
Kimberly-Clark, the international manufacturer of consumer products including Andrex®, Kleenex® and Huggies®, is one of the companies that will benefit from today’s decision. Carlton’s Barrow scheme will supply green hydrogen to Kimberly-Clark’s manufacturing plant in the town, reducing the company’s reliance on natural gas by up to 30%.
Carlton Power is working with Schroders Greencoat LLP (“Schroders Greencoat”), the specialist investment manager dedicated to the renewable energy infrastructure sector, to finance, build and operate the three projects via their joint venture - Green Hydrogen Energy Company Ltd (“GHECO”). The JV, announced in May 2023, aims to build a hydrogen project portfolio in the UK of 500 MW by 2030.
Kristian Høeg Madsen, Co-head of hydrogen at Schroders Greencoat, said: “As one of the Europe’s leading investors in renewable energy infrastructure, we are incredibly pleased that our partnership with Carlton as one of the UK’s leading developers has progressed today with this successful outcome from HAR1. Hydrogen can provide robust, reliable and carbon-free returns for investors, and we’re excited to continue to drive green hydrogen build-out in the UK in line with the Government’s hydrogen ambitions.”
Energy Security Secretary Claire Coutinho said: “Hydrogen presents a massive economic opportunity for the UK, unlocking over 12,000 jobs and up to £11 billion of investment by 2030. Today’s announcement represents the largest number of commercial scale green hydrogen production projects announced at once anywhere in Europe. These 11 major new hydrogen projects across the UK will create over 700 jobs and deliver new opportunities from Plymouth in England to Cromarty in Scotland.”