Kimberly-Clark's Green Hydrogen Investment for Kleenex
Kimberly-Clark, known for its Andrex and Kleenex brands, has reached a green hydrogen agreement in the UK worth a combined £125m (US$169m).
This deal is one of the UK’s first long term offtake agreements for green hydrogen in consumer goods manufacturing.
This is set to cut Kimberly-Clark’s natural gas consumption in UK operations and reduce its greenhouse gas emissions from 2027.
Dan Howell, Vice President and Managing Director at Kimberly-Clark UK & Ireland, says: “This is a significant investment into a green hydrogen solution, and alongside other investments that support our ambition to move our UK manufacturing operations to 100% renewable energy by 2030.
“Now is the right time for us to tap into hydrogen’s significant potential, improving energy supply and our decarbonisation needs.
“We are 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.
“This initiative builds on the investments and progress we’ve already made with innovative technologies for our business, our consumers and our customers.”
What is green hydrogen?
Green hydrogen is produced via electrolysis powered by renewable energy, such as wind or solar.
This clean process sets it apart from grey and blue hydrogen, which are fossil fuel-dependent.
In sectors where high heat or difficult electrification is required, green hydrogen offers a viable substitute for natural gas, providing sustainable options for industrial steam and heat generation.
“Green hydrogen, created using British low carbon energy, will revolutionise how we power industry, helping the UK to build a globally competitive, zero carbon economy in the process,” says Lucy Whitford, Managing Director UK&I at RES.
“We are proud of the success of HYRO's Northfleet project and this latest backing for the plans by Kimberly-Clark shows how we can make green hydrogen a reality.”
The UK Government’s strategy supports large-scale deployment through incentives like the Hydrogen Production Business Model and Net Zero Hydrogen Fund, designed to secure private investment and encourage industrial uptake.
By 2030, the government aims to enable more than 10 GW of low-carbon hydrogen production capacity.
UK Minister for Industry, Sarah Jones, says: “This government is rolling out hydrogen out at scale for the first time, with ten of the first projects now shovel-ready to start powering businesses with clean, homegrown energy from Teesside to Devon.
“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.”
Inside Kimberly-Clark’s hydrogen deal
The partnership involves Kimberly-Clark teaming up with Carlton Power and HYRO, a collaboration between Octopus Energy Generation and RES.
Supported by governmental plans, green hydrogen facilities will be built at Kimberly-Clark’s Barrow-in-Furness and Northfleet locations.
“Kimberly-Clark’s commitment to using green hydrogen in its operations is a significant move and shows great ambition and leadership,” says Keith Clarke, Founder and Chief Executive of Carlton Power.
“Our Barrow Green Hydrogen facility will be the first in a series of projects that we will bring into commercial operation over the next 2-4 years to support UK industry make the transition to using green hydrogen and away from fossil fuels.”
Kimberly-Clark’s two UK plants are responsible for nearly a billion Andrex toilet rolls and more than 150 million Kleenex tissue boxes annually.
The Barrow plant’s hydrogen production is expected to reach 100 GWh per year and the Northfleet facility will add 47 GWh per year.
Collectively, this is set to cut 28,500 tonnes of carbon dioxide emissions each year.
Once operational in 2027, these projects will displace 50% of natural gas usage against 2024 levels.
This will support Kimberly-Clark’s goal of reducing absolute Scope 1 and 2 greenhouse emissions by 50% between 2015 and 2030.
Alex Brierley, Co-Head of Octopus Energy Generation’s Fund Management Team, says: “This is an exciting milestone for HYRO and for green hydrogen in the UK’s industrial sector.
“HYRO’s project with Kimberly-Clark at their Northfleet paper mill 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 – and 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.”
