Carlton Power is developing green hydrogen projects to support Net Zero

Founded in 1995, Carlton Power is an established independent energy infrastructure development company with offices in Edinburgh and Stokesley in North Yorkshire. The organisation has extensive technical, planning, financing and construction expertise which has delivered more than 3.5GW of thermal, 8MW of solar, with c2.5GW of energy storage at various stages of development over the last 25 years. Our hydrogen project development team is based in Edinburgh.

The Stirling Green Hydrogen scheme is Carlton Power’s first scheme in Scotland. Subject to planning and final designs, it will be similar to Carlton’s three other hydrogen projects that were selected to be awarded contracts by the UK Government (December 2023) to receive financial support through the government’s Hydrogen Business Model/Net Zero Hydrogen Fund. The UK Government is using these multi-million-pound programmes to encourage the growth of the hydrogen economy in Scotland and across the UK.

Carlton Power are members of Hydrogen UK and the Scottish Hydrogen and Fuel Cell Association.

What is green hydrogen?

Hydrogen is a light and versatile fuel that can be produced by the chemical process known as electrolysis, where water is separated into hydrogen and oxygen. If a renewable energy source, such as wind or solar generated electricity is used to power the electrolyser, the resulting hydrogen is classified as green, because it has been produced without generating any carbon emissions.

The green hydrogen that is produced can be used for various applications, such as displacing natural gas in industry and home heating networks and replacing traditional fuels in commercial and passenger vehicles. The green hydrogen can also be stored, creating a method to store excess renewable energy, which is one of the major challenges facing the national electricity network.

How does this tie in with net zero?

Net zero refers to the balance between the amount of greenhouse gas emitted and the amount removed from the atmosphere. Many industries such as power generation, petrochemicals, manufacturing, and travel are all carbon intensive and emit greenhouse gases into the atmosphere. Since the industrial revolution, the natural carbon sinks of the Earth, such as forests and oceans, can no longer remove carbon from the atmosphere at the rate required to prevent global warming. As the amount of greenhouse gas emissions are reduced and carbon sinks and other methods to remove carbon dioxide from the atmosphere are increased, net zero will be achieved once these are equal.

Green hydrogen is anticipated to play a vital role in reducing the reliance on fossil fuels and carbon intensive processes in industry and everyday life, enabling the ambitious net zero targets set by the UK and Scottish Government to be achieved.

UK Government Support

Carlton Power were successful in Round One of UK Government’s Hydrogen Business Model (HBM)/Net Zero Hydrogen Fund process. Our three projects entered into the HBM Round – at Trafford in Greater Manchester, Barrow-in-Furness (Cumbria) and Langage, near Plymouth (Devon) – have been selected to receive financial support from the UK Government.

Subject to final agreements with the Government and final investment decisions for each project, we are aiming to start construction of each project in 2025 and for each of the projects to enter commercial operation in 2026.

The three schemes which represent c£200m of direct investment, will replace c215GWh of natural gas and thereby reduce carbon emissions by c40,000 tonnes per annum from 2025. Stirling Green Hydrogen is an industry leading project, that will use renewable energy to produce green hydrogen fuel which will decarbonise industry. The development will have an initial capacity of 30 MW and has the potential to expand to several hundred megawatts.

Stirling is part of a portfolio of green hydrogen schemes being developed by Carlton Power and, subject to planning consent and a final investment decision within the next 12-18 months, it would be owned by the Green Hydrogen Energy Company (“GHECO”), Carlton’s joint venture company with Schroders Greencoat. Within GHECO, Carlton Power is managing the development, construction, and operation of current and future green hydrogen projects, with Schroders Greencoat leading the financing of the projects and leveraging its UK renewable energy expertise. Schroders Greencoat is a specialist investment manager dedicated to the renewable energy infrastructure sector in the UK and Europe.