Schroders Greencoat and Carlton Power have reached a Final Investment Decision (FID) on the 30MW Barrow Green Hydrogen Project in Cumbria.
The facility is owned and delivered by Green Hydrogen Energy Company (GHECO), a joint venture established by the two firms in 2023 to deploy institutional capital into UK green hydrogen infrastructure. The project is the first to enter construction under the GHECO platform, which aims to build a 200MW portfolio of green hydrogen projects in the UK by 2030.
Originally conceived in 2022 and developed by Carlton Power, the Barrow project secured a Low Carbon Hydrogen Agreement with the UK Government in June 2025 under the first Hydrogen Allocation Round (HAR1). Following the agreement, GHECO acquired the project to finalise its technical and commercial development.
To advance the plant to the construction stage, GHECO secured several key partnerships:
- Industrial offtake: A long-term supply agreement with consumer goods specialist Kimberly-Clark will supply hydrogen to its Barrow-in-Furness manufacturing plant, where brands like Andrex and Kleenex are produced. The switch is estimated to reduce the site’s natural gas consumption by up to 50% and cut carbon emissions by 18,300 tonnes annually.
- Power supply: A long-term Power Purchase Agreement (PPA) with SEFE will provide the renewable energy required to operate the facility.
- Technology & engineering: Plug Power will supply the hydrogen electrolysers, while EDF subsidiary Dalkia Engineering will handle the engineering, procurement, and construction (EPC) services.
Kristian Høeg Madsen, Co-Head of Hydrogen Investments at Schroders Greencoat, stated: “Reaching Final Investment Decision on Barrow is a key milestone for Schroders Greencoat, as well as the UK’s emerging hydrogen economy. 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.”
Eric Adams, Hydrogen Projects Director at Carlton Power, noted that navigating the project through HAR1 to FID represented a significant collaborative effort, adding: “Together, we’ve set a benchmark for future projects.”
UK Energy Minister Michael Shanks welcomed the progress, stating: “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 Low Carbon Contracts Company (LCCC), added: “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.”
