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Kimberly-Clark signs green hydrogen deal
Kimberly-Clark UK & Ireland has become the UK’s first major consumer products company to make a significant commitment to green hydrogen, signalling its commitment to a more sustainable future.
Together with its energy partners, Carlton Power and HYRO (a joint venture between Octopus Energy Generation and RES), it is investing over £125m into the emerging energy solution at its two plants in Barrow-in-Furness, Cumbria and Northfleet, Kent. Combined, the sites produce nearly 1bn Andrex toilet rolls and over 150m boxes of Kleenex tissues annually. Through the investment, Kimberly-Clark expects to see a 50% reduction versus its 2024 consumption of natural gas across its UK production lines from 2027.
The two long-term offtaker hydrogen supply agreements mean a green hydrogen facility is installed next to the Barrow plant, while a separate facility will be built on the Northfleet plant. Both projects are being supported with UK government funding, after selection for the Government’s Hydrogen Production Business Model (HPBM) and Net Zero Hydrogen Fund (NZHF) – a global first also known as Hydrogen Allocation Round One – HAR1.
Carlton Power’s Barrow Green Hydrogen project secured local planning consent in June 2023. HYRO’s project at the Northfleet paper mill received planning permission after the local council granted consent for the scheme in August 2024.
The Barrow project will supply 100GWh of hydrogen per annum while the Northfleet project will supply 47GWh per annum. Collectively, the displacement of natural gas with hydrogen will reduce carbon emissions by 28,500 tonnes per annum, equivalent to removing approximately 20,000 petrol cars off the road every year.
Green hydrogen – created through the electrolysis of water using electricity from renewable sources, like wind and solar – allows a versatile energy source to be generated and stored without emitting polluting gases during combustion or production.
Dan Howell, Vice President and Managing Director at Kimberly-Clark UK & Ireland, said: “This is a significant investment into a green hydrogen solution, alongside other investments that support our ambition to move our UK manufacturing operations to 100% renewable energy by 2030.
“Now’s the right time for us to tap into hydrogen’s significant potential, improving energy supply and our decarbonisation needs. We’re delighted to be the first UK consumer goods manufacturer to really embrace green hydrogen, showing that an energy intensive industry can take the lead and overcome the technical challenge and adopt green hydrogen at scale.”
Minister for Industry, Sarah Jones, added: “Hydrogen will help us cut industrial emissions and support Britain’s industrial renewal by creating thousands of jobs in our industrial heartlands as part of the Plan for Change.”
Keith Clarke, Founder and Chief Executive of Carlton Power, commented: “Our Barrow Green Hydrogen facility will be the first in a series of projects that we will bring into commercial operation over the next two-to-four years to support UK industry make the transition to using green hydrogen and away from fossil fuels.”
Alex Brierley, co-head of Octopus Energy Generation’s fund management team, revealed: “HYRO’s project with Kimberly-Clark at Northfleet has progressed well, with government funding contracts in place and planning permission approved, too. Green hydrogen will play a significant role in decarbonising hard-to-electrify industries – Kimberly-Clark has been a pioneer in this space. This scheme will help produce household products using renewables and flush away fossil fuels for good.”
The initiatives are expected to enable Kimberly-Clark UK & Ireland to achieve a total reduction of its operational greenhouse gas emissions by more than 80% in 2027 (vs 2015 baseline). These improvements will also help Kimberly-Clark meet its sustainability ambitions to achieve a 50% reduction of absolute Scope 1 and 2 GHG emissions globally, from a 2015 base year by 2030.
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