UK: Green hydrogen and district heating via Projects GHECO and Diamond

Brunel is invested in GHECO, a joint venture (JV) that is developing ready-to-build hydrogen electrolyser projects. The JV has exclusive rights over the projects, through which it aims to bring 500MW of green hydrogen power online by 2030.

Green hydrogen is expected to play a role in the UK’s transition to a sustainable economy, supporting both climate change mitigation and energy security (see UK Hydrogen Strategy). 500MW represents half of the UK’s broader 2025 target. Brunel is invested in the project through its Secured Income Cycles 1-3 portfolios and through the UK allocation within its Cornwall Local Impact portfolio, all of which hold an allocation to Schroders Greencoat’s GRI (Greencoat Renewable Income) fund.

The GRI fund is also invested in Bring Energy, the largest owner of district heating in the UK, supplying 600MW hours of heat annually. (‘District heating’ uses a central heat source to distribute hot water/heating to multiple dwellings, which tends to significantly improve energy efficiency.) Through the GRI investment, Brunel has exposure to one of the largest city-scale district heating networks in the UK.