Carlton Power secures UK Government Support for its Trafford Green Hydrogen Project

Dec 15, 2023 | Smart Energy

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The Trafford Green Hydrogen Scheme has been named as one of a number of green hydrogen schemes that will benefit from £2 billion in government funding, unlocking hundreds of jobs and millions more investment.

Carlton Power, one of the UK’s leading independent energy infrastructure development companies, has been successful in Round One of UK Government’s Hydrogen Allocation Round (HAR1).

The company’s green hydrogen project at Trafford in Greater Manchester (and its projects at Barrow-in-Furness in Cumbria and Langage, near Plymouth) has been awarded a financial contract from the UK Department of Energy Security & Net Zero (DESNZ).  Subject to reaching a Financial Investment Decision in the early part of next year, the Trafford project should enter commercial operation within two years.

The Trafford Green Hydrogen project is positioning itself to be a catalyst for more low-carbon generation and greater energy security in the North West. This will also boost green investment in the sector and create more jobs in the renewable space.

This will allow the region to harness renewable energy to produce green hydrogen fuel for transportation and heating.

The Trafford Green Hydrogen project has been developed by Carlton with the support and involvement of a local consortium, comprising Manchester Metropolitan University, Greater Manchester Combined Authority (GMCA), Trafford Council, Cadent Gas and Electricity North West. It is to be sited within the c12 hectare Trafford Low Carbon Energy Park, where Carlton  also has planning permission to build a 1GW battery energy storage scheme (announced in July 2023).

Eric Adams, Carlton Power’s Hydrogen Projects Director said:

“We are delighted with today’s announcement from DESNZ.  Securing a contract for Trafford – 15MW of capacity and an investment of c£30m, and with planning consent  – is a major achievement and places Carlton Power among the leading British companies that are helping to build the hydrogen economy in the UK.  The development of Trafford Green Hydrogen will be a major boost for the North West’s hydrogen ambitions.”

Keith Clarke, Founder and Chief Executive of Carlton Power said: “We are supporting local industry to decarbonise their operations, supporting Greater Manchester’s efforts to reach Net Zero and we are a catalyst for green investment and jobs.  Working with our financial partners, Schroders Greencoat, we can now work towards a Final Investment Decision for the Barrow scheme in the early part of next year and thereafter work to have it enter commercial operation within two years.”

Carlton Power is working with Schroders Greencoat LLP (“Schroders Greencoat”), the specialist investment manager dedicated to the renewable energy infrastructure sector, to finance, build and operate Barrow Green Hydrogen via their joint venture – Green Hydrogen Energy Company Ltd (“GHECO”).  The JV, announced in May 2023, aims to build a hydrogen project portfolio in the UK of 500 MW by 2030.

Kristian Høeg Madsen, Co-head of hydrogen at Schroders Greencoat, said:

“As one of the Europe’s leading investors in renewable energy infrastructure, we are incredibly pleased that our partnership with Carlton as one of the UK’s leading developers has progressed today with this successful outcome from HAR1.  Hydrogen can provide robust, reliable and carbon-free returns for investors, and we’re excited to continue to drive green hydrogen build-out in the UK in line with the Government’s hydrogen ambitions.”

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