30MW UK-backed green hydrogen project takes FID

The UK Government backed Barrow Green Hydrogen project has reached final investment decision (FID) under the joint venture (JV) between its main developers, Carlton Power and Schroders Greencoat.

Set to come online in 2028, the 30MW facility in Cumbria is among the first developments included in the UK’s Hydrogen Allocation Round 1 (HAR1) to reach financial close, and will receive revenue subsidies for 15 years when operational.

Carlton, an energy infrastructure developer, and Schroders, a renewable energy investment manager, jointly launched the project in 2022 before establishing the Green Hydrogen Energy Company (GHECO) as a dedicated JV to continue its development in 2025.

Securing Energy for Europe (SEFE) is set to provide renewable power for the project under a long-term power purchase agreement, while Plug Power’s GenEco electrolysers, in late 2025, will underpin green hydrogen production.

HAR1 will entitle the project to a strike price of £241/MWh – around £9/kg of hydrogen – topping up revenues when market prices fall and clawing funds back when they rise.

GHECO – which is now aiming to build a UK portfolio of 200MW by 2030 – says it has already secured a long-term offtake agreement with a consumer goods company for decarbonising its nearby manufacturing plant.

Eric Adams, Hydrogen Projects Director at Carlton Power, said the FID sets a benchmark for future UK hydrogen projects.

Despite the development, concerns across the UK hydrogen sector remain with the HAR1 scheme having faced major delays and its second round remaining stalled despite a 27-project shortlist having been announced last April.

The project, however, represents the second under HAR1 to reach FID in the first half of the year.

March saw MorGen Energy’s 20MW West Wales Hydrogen project in Milford Haven .