Multinational law firm Pinsent Masons has advised Carlton Power on the establishment of a joint venture with Schroders Greencoat for the development of a portfolio of green hydrogen projects in the UK.
The joint venture company, Green Hydrogen Energy Company Limited (GHECO), is governed by a shareholders’ agreement between Carlton Power and Schroders Greencoat. The JV will see Carlton Power develop the projects to ready-to-build status, at which point they will transfer to GHECO, and benefit from up to £200 million of funding committed by Schroders Greencoat with an option to increase the initial funding commitment.
Carlton Power will continue to manage the development of the projects under a management services agreement which is in place.
Pinsent Masons advised on Carlton Power on all aspects of establishing the JV including the shareholders’ agreement and articles, template acquisition documentation, and the management services agreement.
The PM team was comprised of John Tyerman and Sarah-Louise Baird (Corporate), John Bruce and Laura Whiteway-Bell (Projects), and Jamie Robson (Tax).
John Tyerman said: “The UK has committed to deliver up to 10GW of new low carbon hydrogen production capacity by 2030. The market to scale up the hydrogen sector will need to be driven by collaboration across the private sector, and JV structures like this one show how they can be done effectively.”
The JV will accelerate the development of green hydrogen projects in the UK. The partners are aiming to build a project portfolio in the UK of 500 MW by 2030, contributing to the UK’s leadership position in hydrogen production as well as its energy security and Net Zero ambitions.
The first three hydrogen projects to be developed by Carlton Power as part of the JV include:
- Trafford Green Hydrogen Project, Trafford Low Carbon Energy Park in Manchester (comprising an initial capacity of 15MW),
- Barrow Green Hydrogen Project in Barrow-in-Furness, Cumbria (comprising an initial capacity of 30MW), and
- Langage Green Hydrogen Project, Langage Energy Park, in Plymouth (comprising an initial capacity of 10MW).
These projects have been shortlisted by the Department of Energy Security and Net Zero to receive financial support from the Government’s Hydrogen Business Model / Net Zero Hydrogen Fund in the first Hydrogen Allocation Round.