A Milestone in the Nation’s Hydrogen Economy Development: Carlton Power Secures UK Government Support for Green Hydrogen Projects
In a significant stride towards achieving the UK’s Net Zero goals, Carlton Power, a prominent independent energy infrastructure development company, has emerged successfully in Round One of the UK Government’s Hydrogen Allocation Round (HAR1).
This accomplishment secures financial contracts for three green hydrogen projects located in Trafford (Greater Manchester), Barrow-in-Furness (Cumbria), and Langage (Plymouth), each contributing to a total capacity of 55MW and an investment of approximately £100 million. This article explores the implications of Carlton Power’s achievement and the potential impact on the UK’s hydrogen landscape.
Independent policy institute, Curia recently published three papers which outlined the socio-economic benefits that each of the projects would bring to the local community.
Opportunity to Bolster the UK’s Green Hydrogen Sector:
Carlton Power has positioned itself as a leading body in the UK’s transition to sustainable energy solutions. The company’s success in HAR1 signifies a pivotal moment in the development of green hydrogen projects, aligning with the Government’s commitment to Net Zero and energy security.
The three awarded projects, subject to reaching Financial Investment Decisions in the early part of the next year, are projected to commence commercial operations within two years. The locations – Trafford, Barrow-in-Furness, and Langage – have received financial contracts from the UK Department of Energy Security & Net Zero (DESNZ). This achievement underscores the projects’ viability and aligns with the UK’s broader efforts to bolster its hydrogen economy.
Curia’s report found that the Langage scheme alone would add £1.26 million GVA to the local economy by 2030. The report also said that as the price of renewable energy falls and electrolyser technology efficiency improves, the cost of hydrogen will fall further and become an increasingly important element of the UK’s diversified energy sector.
Environmental Impact and Industry Transition:
Hydrogen Projects Director at Carlton Power, Eric Adams expressed his delight at the announcement, emphasising that securing contracts for each project, totaling 55MW of capacity and an investment of £100 million, is a major achievement for the company. Founder and Chief Executive, Keith Clarke highlighted Carlton Power’s role in supporting UK industry decarbonisation and acting as a catalyst for green investment and job creation in regional economies.
The three projects are anticipated to replace approximately 215GWh of natural gas, resulting in an estimated annual reduction of 40,000 tonnes of carbon emissions from 2026. This shift towards green hydrogen will play a crucial role in supporting local manufacturing and industrial companies in their efforts to decarbonize operations and transition away from fossil fuels.
Financial Partnership and Future Prospects:
International consumer product manufacturer Kimberly-Clark, renowned for brands such as Andrex®, Kleenex®, and Huggies®, stands to benefit from Carlton Power’s Barrow scheme. The project aims to supply green hydrogen to Kimberly-Clark’s manufacturing plant, reducing the company’s reliance on natural gas by up to 30%.
Carlton Power is collaborating with Schroders Greencoat LLP through their joint venture, Green Hydrogen Energy Company Ltd (GHECO), to finance, build, and operate the three projects. Schroders Greencoat, a specialist investment manager in renewable energy infrastructure, expressed satisfaction with the successful outcome from HAR1 and aims to build a hydrogen project portfolio of 500MW by 2030.
Carlton Power’s success in securing UK Government support for its green hydrogen projects signifies a crucial step towards the nation’s Net Zero objectives. The collaboration with financial partners and the potential impact on industries like manufacturing underscore the broader significance of these projects. As the hydrogen landscape evolves, Carlton Power’s endeavours contribute to the momentum of the UK’s green energy transition, paving the way for a sustainable and resilient future.