Schroders Greencoat, the green energy manager of Schroders Capital, and Carlton Power are set to build the 30MW Barrow Green Hydrogen Project in Cumbria, having today reached final investment decision (FID) on the scheme.
The Barrow Green Hydrogen Project is owned and being delivered by Green Hydrogen Energy Company (GHECO), the joint venture established by Schroders Greencoat and Carlton Power in 2023. The partners said it is one of the first renewable hydrogen production facilities to reach FID in the UK.
The GHECO joint venture is a dedicated platform through which institutional capital can be deployed at scale into UK green hydrogen production.
The Barrow Green Hydrogen Project is the first project that the GHECO platform has brought into construction. The project was originated and initially developed by Carlton Power, and the company signed a Low Carbon Hydrogen Agreement (a type of contract for difference) with the UK government in June 2025, following the government’s first Hydrogen Allocation Round (HAR1).
Following this, the project was acquired by GHECO, which has continued and finalised the commercial and technical development of the project leading to the FID.
Barrow is part of a “significant pipeline” that GHECO is targeting to build over the coming years with an aim to build a 200MW portfolio of green hydrogen projects in the UK by 2030.
To bring Barrow to the FID stage, GHECO has secured a long-term hydrogen supply agreement with Andrex and Kleenex maker Kimberly-Clark at its Barrow-in-Furness manufacturing plant and an agreement with SEFE, a provider of renewable energy, to provide the power to operate the plant over a long-term power purchase agreement (PPA). Plug Power will provide hydrogen electrolysers and EDF subsidiary Dalkia Engineering will deliver the construction and commissioning of the project.
Kristian Høeg Madsen, co-head of hydrogen investments at Schroders Greencoat, said: “Through our origination, structuring and execution capabilities, we have combined a contract for difference, a long-term PPA with SEFE and a credible industrial offtake in Kimberly-Clark to build exactly the kind of contracted, inflation-linked infrastructure our investors are looking for.
“This represents an exciting milestone for the project, and we are delighted to start construction of this pioneering asset.”
Eric Adams, Carlton Power’s hydrogen projects director, said: “I’m delighted that GHECO, our joint venture with Schroders Greencoat, has reached a final investment decision at Barrow, one of the first and largest green hydrogen projects in the UK to have reached this milestone. Being one of the first projects, which was first conceived in early 2022, to come through HAR1 and reach FID has been a fantastic effort from everyone involved.
“Together, we’ve set a benchmark for future projects.”
Minister for Energy Michael Shanks said: “Our clean energy mission is powering the production of everyday essentials found on supermarket shelves, from Andrex to Kleenex.
“Barrow Green Hydrogen reaching this next step showcases the UK’s thriving hydrogen industry, which will be crucial to ending our reliance on fossil fuels, driving investment and creating jobs for local communities in Cumbria and across the UK.”
Emma Bezuidenhout, head of hydrogen at the UK government’s Low Carbon Contracts Company, said: “We’re thrilled to see another green hydrogen project reach final investment decision. This represents a significant step forward for UK hydrogen and a vote of confidence in the Low Carbon Hydrogen Agreement.
“LCCC is proud to be the long-term counterparty to the agreement, providing investors with the certainty to proceed with this pioneering project. We’re looking forward to working closely with the Barrow team as the project progresses towards commissioning.”
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