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.”Issued by Schroder Investment Management Limited. Registration No 1893220 England. Authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service.
For further information from Schroders Greencoat, please contact:
Andy Pearce, Head of Media Relations | +44 20 7658 2203 | |
Rachael Dowers, PR Manager | +44 20 7658 2086 | |
Justine Crestois, PR Executive | +44 20 7658 5186 |
About Schroders Greencoat
Schroders Greencoat LLP, formerly Greencoat Capital LLP, is a specialist manager dedicated to the renewable energy infrastructure sector. With teams in London, Dublin, Frankfurt, Amsterdam, Copenhagen, and Madrid, as well as in New York and Chicago, and over £8.6 billion under management*, Schroders Greencoat is one of the largest dedicated managers in Europe. It was founded in 2009 and currently has fund mandates with strategies investing into wind, solar, bioenergy and renewable heat in the UK, Europe and the United States. In total, the company manages renewable infrastructure assets with an aggregate net generation capacity of over 5.6 GW*.
For more information, please visit https://www.schrodersgreencoat.com.
* as of 30th June 2023
Schroders Capital
Schroders Capital provides investors with access to a broad range of private asset investment opportunities, portfolio building blocks and customised private asset strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private asset mandates. The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity.
With $86.7 billion (£68.2 billion; €79.5 billion)* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
*Assets under management as at 30 June 2023 (including non-fee earning dry powder and in-house cross holdings)
Schroders plc
Schroders is a global investment management firm with £726.1 billion (€846.1 billion; $923.1 billion) assets under management, as at 30 June 2023. Established in 1804, Schroders continues to deliver strong financial results in ever challenging market conditions, with a market capitalisation of circa £7 billion and over 6,100 employees across 38 locations. The founding family remains a core shareholder, holding approximately 44% of Schroders’ shares.
Schroders has benefited from a diverse business model by geography, asset class and client type. It offers innovative products and solutions across four core growing business areas; asset management, solutions, Schroders Capital (private assets) and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, high net worth individuals and foundations. Schroders also manages assets for end clients as part of its relationships with distributors, financial advisers and online platforms.
Schroders aims to provide excellent investment performance to clients through active management. It also channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we will deliver for our shareholders and other stakeholders.