Schroders Greencoat secures UK green hydrogen contracts in first allocation round

Schroders Greencoat won UK Government production contracts for three green hydrogen projects through the inaugural hydrogen allocation round (HAR1), executed via its GHECO joint venture with Carlton Power. The structure shows how investor-led offtake-backed financing can underpin hydrogen scale-up, a model relevant to India's own green hydrogen mission targets.

Schroders Greencoat, the renewables manager within Schroders Capital, secured UK Government hydrogen production contracts for three projects following completion of the first hydrogen allocation round (HAR1). The projects, in Manchester, Cumbria and Devon, are delivered through The Green Hydrogen Energy Company (GHECO), a joint venture with Carlton Power. They support the UK goal of deploying up to 10GW of low-carbon hydrogen capacity by 2030, with commercial operation scheduled for the first half of 2026 and offtake agreements already in place.

The projects directly affect local industrial offtakers seeking decarbonisation. Kimberly-Clark, maker of Andrex and Kleenex, will use clean hydrogen from the Barrow Green Hydrogen project to decarbonise industrial operations, and the projects may also supply local transport operators and other businesses. Carlton Power, an independent UK energy infrastructure developer, oversees development, construction and operation, while Schroders Greencoat leads project financing. This marks Schroders Greencoat's first entry into the hydrogen sector via renewable-energy investment expertise.

Companies tracking green hydrogen markets should monitor GHECO's stated objective of building a 500MW UK hydrogen portfolio by 2030 and the first-half 2026 commercial operation timeline. Indian industrial and investment players pursuing comparable hydrogen offtake arrangements can study the contract-backed financing structure that pairs government allocation support with secured offtaker agreements. Watching how HAR1 contracts convert into operating capacity offers a reference point for de-risking early-stage hydrogen deployment through long-term purchase commitments.

Key figure — UK hydrogen capacity target: up to 10GW of low-carbon hydrogen by 2030