Dalkia UK to build one of the UK’s first large-scale green hydrogen plants in Cumbria
Dalkia UK has secured a contract to deliver the Barrow Green Hydrogen project in Cumbria, marking one of the first renewable hydrogen production facilities in the United Kingdom to reach final investment decision under the government’s hydrogen support framework.
The project is being developed by Green Hydrogen Energy Company, a joint venture between Schroders Greencoat and Carlton Power. It is supported by the UK Government through its Hydrogen Business Model and Hydrogen Allocation Round 1 programme, reflecting its role in the country’s emerging low-carbon hydrogen strategy.
Dalkia UK’s engineering team will design and install a 30MW green hydrogen production facility in Barrow-in-Furness. The hydrogen produced will be supplied to industrial users, most notably Kimberly-Clark, which operates a manufacturing plant in the town producing products including Andrex and Kleenex. The transition to green hydrogen is expected to reduce the site’s reliance on natural gas by up to 50% and cut carbon dioxide emissions by around 18,300 tonnes.
The project will also benefit from a long-term renewable electricity supply arrangement with SEFE Energy, supporting the operation of six containerised 5MW proton exchange membrane electrolyser units supplied under a separate contract by Plug Power. These systems will use renewable electricity to produce hydrogen on site, forming the core of the plant’s low-carbon energy system.
Dalkia UK will oversee the full scope of delivery, including design, mechanical and electrical installation, hydrogen storage systems, civil works, safety and monitoring infrastructure, as well as testing and commissioning. The company also plans to use modular construction and prefabrication techniques to improve delivery efficiency, reduce waste and ensure programme certainty.
Main construction activity is scheduled to begin in the summer, with commercial operation expected within the next two years. The project follows more than three years of pre-construction development work between Dalkia and the project partners.
Industry stakeholders involved in the project said the development represents an important step for the UK hydrogen sector, demonstrating how contracted infrastructure projects backed by government support and long-term industrial offtake agreements can unlock private investment at scale. Schroders Greencoat highlighted the Barrow project as a key milestone in building its hydrogen investment platform, while Carlton Power emphasised its role in advancing the UK’s wider industrial decarbonisation ambitions.
The Barrow facility is part of the first wave of low-carbon hydrogen projects supported under the UK Government’s Hydrogen Allocation Round 1 programme, signalling growing momentum behind the country’s transition to industrial-scale hydrogen production.
