UK green hydrogen project reaches final investment decision with Plug Power electrolyzers
Plug Power Inc. has announced that the 30 MW Barrow Green Hydrogen project in Barrow-in-Furness, Cumbria has reached final investment decision (FID), clearing the way for construction of one of the UK’s most advanced industrial green hydrogen facilities.
The project is being developed by Green Hydrogen Energy Company (GHECO), a joint venture between Schroders Greencoat and Carlton Power, and will use Plug Power’s GenEco™ proton exchange membrane (PEM) electrolyser technology.
Once operational, the facility is expected to produce around 100 GWh of green hydrogen annually, supplying industrial users in the region, including a manufacturing plant operated by Kimberly-Clark in Barrow, where products such as Andrex and Kleenex are produced.
The hydrogen produced at the site will replace a significant portion of natural gas use at the facility, supporting an estimated reduction of around 18,300 tonnes of CO₂ emissions per year. The project is also backed by a long-term power purchase agreement with SEFE to secure renewable electricity supply for hydrogen production.
Under the finalised agreement, Plug Power will supply six 5 MW GenEco PEM electrolyser units, forming the core of the 30 MW installation. The Barrow project is the first of three UK hydrogen developments under the GHECO platform to reach FID, with additional sites at Trafford and Langage expected to follow.
The projects are supported by the UK government’s Hydrogen Business Model through the Hydrogen Allocation Round 1 (HAR1), which is designed to bridge the cost gap between low-carbon hydrogen and conventional fuels and accelerate deployment in hard-to-abate sectors.
Industry participants say the Barrow project represents an important step in scaling up industrial hydrogen production in the UK, combining long-term offtake agreements, infrastructure investment and government support to reduce project risk and enable construction.
Jose Luis Crespo, Chief Executive Officer of Plug Power, said the milestone reflects growing confidence in the company’s electrolyser technology and its ability to deliver at industrial scale across Europe.
Investors behind the project, including Schroders Greencoat, said the development demonstrates how structured contracts such as contracts for difference, long-term power agreements and industrial offtake deals can be combined to unlock institutional capital for hydrogen infrastructure.
With construction now set to begin, the Barrow project is positioned as a key component of the UK’s emerging hydrogen economy and a model for future large-scale green hydrogen developments across Europe.
