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22/05/2026

Dalkia Secures Contract for Major Green Hydrogen Project

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Dalkia UK has secured a contract to deliver the Barrow Green Hydrogen project in Cumbria, one of the first renewable hydrogen production facilities in the UK to reach Final Investment Decision (FID).

The project is being developed by Green Hydrogen Energy Company (GHECO), a joint venture established in 2023 by Schroders Greencoat and Carlton Power.

Located in Barrow-in-Furness, the 30MW green hydrogen plant will supply hydrogen to Kimberly-Clark for use at its manufacturing facility, where products including Andrex® and Kleenex® are produced.

The scheme is backed by the UK Government through its Hydrogen Business Model and Hydrogen Allocation Round 1 support programme.

Under the agreement, Dalkia will provide design, installation and commissioning services for the facility. The hydrogen produced at the site will help Kimberly-Clark reduce its reliance on natural gas as part of its wider decarbonisation strategy.

The Barrow manufacturing site is expected to cut its natural gas consumption by up to 50%, reducing carbon dioxide emissions by around 18,300 tonnes. A long-term power purchase agreement has also been secured with SEFE for the supply of renewable electricity.

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The announcement follows more than three years of collaborative preconstruction and design work between Dalkia and Barrow Green Hydrogen Limited. Main construction works are due to begin this summer, with commercial operations expected to start within the next two years.

As part of the project, six containerised 5MW Proton Exchange Membrane (PEM) electrolysers will be supplied by Plug Power under a separate contract. Dalkia will oversee the mechanical and electrical integration of the infrastructure.

The company said modular construction and prefabrication techniques will be used to accelerate delivery, improve programme certainty and reduce waste.

Dalkia's scope of work also includes utilities coordination, civils, hydrogen storage, mechanical and electrical services, fire and security systems, trenching and pipework, SCADA and National Grid interfaces, hazard identification and monitoring, as well as testing and commissioning.

Rob Faro, Managing Director of Dalkia Engineering, said: "Dalkia is backed by EDF which is a global leader in green energies, and we are proud to have brought our expertise into a collaborative partnership with the client to optimise delivery of one of the first hydrogen production facilities to reach FID in the UK.

"The development of green and renewable energies is a strategic priority for the UK, and Dalkia – and we invite any other interested stakeholders to join us in the conversation."

Eric Adams, Carlton Power's Hydrogen Director, added: "Dalkia brings valuable expertise and experience to the Barrow project, one of the first green hydrogen projects to enter construction in the UK. The construction of Barrow and our other green hydrogen projects within our portfolio will provide a major spur to the UK’s hydrogen ambitions and the broader efforts to decarbonise UK industry."

Image courtesy of Carlton Power

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