Barrow’s green hydrogen project has been given a formal go ahead.
Carlton Power will work with Kimberly-Clark, which produces Andrex and Kleenex, to supply green hydrogen to its manufacturing plant long-term.
Schroders Greencoat estimated that the Kimberly-Clark Barrow site will reduce its consumption of natural gas by up to 50 per cent with a reduction of 18,300 tonnes of CO2 emissions.
The firm and Carlton Power have also today announced that they have reached their final investment decision on the 30MW project, which is expected to become operational in 2028.
Michelle Scrogham, MP for Barrow & Furness, said construction is now set to start in the coming weeks.
She said: “This development, which is on track to be up and running in 2028, is a great example of Government investment and support for projects in our area opening the doors for significant private capital to be invested at scale.
“The project will supply green hydrogen to Kimberly-Clark’s manufacturing facility in Barrow and is one of 10 in the country being supported in the first phase of the Government’s flagship hydrogen programme.
“The scheme is expected to employ around 200 workers during its construction phase and create around 10-15 full-time posts once it is in operation.
“Our unique geography and time-honoured manufacturing ability means we are becoming a senior player in the green energy transition which is driving investment and creating jobs for local communities in Cumbria and across the UK.”
The project, which is owned and being delivered by Green Hydrogen Energy Company – the joint venture established by Schroders Greencoat and Carlton Power in 2023 – is one of the first renewable hydrogen production facilities to reach final investment decision in the UK.
It was initially developed by Carlton Power and the company signed a Low Carbon Hydrogen Agreement with the UK Government in June 2025, following the Government’s first Hydrogen Allocation Round.
Following this, the project was acquired by the joint venture, which has continued and finalised the commercial and technical development of the project leading to the final investment decision.
The Green Hydrogen Energy Company has also brought together parties including an agreement with SEFE, a leading provider of renewable energy, to provide the power to operate the plant over a long-term Power Purchase Agreement.
Other parties include one of the world’s leading producers of hydrogen electrolysers in the form of Plug Power; and an agreement with EDF subsidiary Dalkia Engineering, an experienced engineering procurement and construction provider to deliver the construction and commissioning of the project.
Kristian Høeg Madsen, co-head of hydrogen investments at Schroders Greencoat, said: “We have significant ambitions to grow the GHECO platform – reaching final investment decision on Barrow is therefore 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.
“This represents an exciting milestone for the project, and we are delighted to start construction of this pioneering asset.
“We believe hydrogen is central to the next phase of the energy transition and projects like Barrow demonstrate how Schroders Greencoat can unlock opportunities for investors and deploy institutional capital at pace to decarbonise hard-to-abate sectors.
“Building on our long track-record in renewable and energy transition aligned infrastructure, Barrow marks our first move into hydrogen at scale and is the first of many such projects we expect to deliver.”
Eric Adams, Carlton Power’s Hydrogen Projects Director, added: “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, notably Kimberly-Clark, at DESNZ and the Low Carbon Contracts Company and the GHECO team at Schroders Greencoat and Carlton Power.
“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, LCCC head of hydrogen, 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.”
