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

Schroders Greencoat, the specialized renewables manager under Schroders Capital, has announced that three green hydrogen projects which it is involved in have secured contracts from the UK Government for hydrogen production, following the completion of the inaugural hydrogen allocation round (HAR1).

The Green Hydrogen Energy Company (GHECO), a joint venture between Schroders Greencoat and Carlton Power, will execute these projects, making a substantial contribution to the UK’s ambitious green hydrogen objectives. This marks Schroders Greencoat’s initial foray into the hydrogen sector, a pivotal component of the UK’s energy transition. The GHECO projects in Manchester, Cumbria, and Devon align directly with the UK Government’s goal of deploying up to 10GW of low-carbon hydrogen production capacity by 2030, showcasing the proactive role companies and investors can play in advancing energy transition objectives.

Scheduled for commercial operation in the first half of 2026, these projects aim to impact local industries by facilitating their decarbonization. Offtaker agreements are in place, ensuring ongoing purchases of green hydrogen from the projects. One notable offtaker is Kimberly Clark, the manufacturer of Andrex® and Kleenex®, which will utilize clean hydrogen from the Barrow Green Hydrogen project to support the decarbonization of its industrial operations. The projects also hold the potential to supply hydrogen to other businesses, including local transport operators.

As part of GHECO, Carlton Power, an independent UK energy infrastructure development company, will oversee project development, construction, and operation. Schroders Greencoat will take the lead in project financing, leveraging its expertise in renewable energy investment. GHECO’s objective is to establish a hydrogen project portfolio in the UK totalling 500MW by 2030.

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