UK Government Hydrogen Boost To Help Power Kimberly-Clark Towards 100% Green Energy Target

Rhea-AI Summary

Kimberly-Clark announced that three green hydrogen projects it is developing have been shortlisted by the UK Government for the Hydrogen Business Model Strategy. This initiative aims to support 250MW of electrolytic hydrogen projects to kickstart the UK's low carbon hydrogen economy. Kimberly-Clark expects a 61% reduction in natural gas consumption in the UK by the end of 2025 as these projects come online. The projects will supply a total of 50MW of green hydrogen to its UK manufacturing facilities. Additionally, a new wind farm in Scotland, operational from April 2023, will provide around 160,000 MWh of renewable energy annually, further reducing greenhouse gas emissions by 86% by 2025 compared to 2015 levels. Contracts for the hydrogen projects are expected later this year, with operations beginning in 2025.

Positive

• Three hydrogen projects shortlisted by UK Government, contributing to 250MW hydrogen economy.
• Expected 61% reduction in natural gas consumption by 2025.
• New wind farm to provide 160,000 MWh of renewable energy annually.
• Targeting an 86% reduction in greenhouse gas emissions by 2025.

Negative

• None.

NORTHAMPTON, MA / ACCESSWIRE / April 7, 2023 / Three green hydrogen projects that Kimberly-Clark is developing with energy industry partners have won places on the UK Government's Hydrogen Business Model Strategy (HBMS) shortlist.

The scheme will kickstart the UK's low carbon hydrogen economy by funding a first-round allocation of 250MW of electrolytic hydrogen projects across England, Scotland and Wales.

Kimberly-Clark, the parent company of leading household brands including Andrex^®, Kleenex^®, Huggies^®, WypAll^® and Scott^®, expects to reduce its natural gas consumption in the UK by 61% when these three projects are operational at the end of 2025, subject to final government contract.

The three hydrogen projects selected by The Department for Energy Security and Net Zero (DESNZ) include a green hydrogen hub in Barrow-in-Furness. Being developed in partnership with Carlton Power, the Barrow Green Hydrogen hub will power Kimberly-Clark's Cumbria manufacturing facility.

The other two projects are being developed in partnership with HYRO, a joint venture between Octopus Energy Generation and renewable energy company RES, and will see green hydrogen supplied to Kimberly-Clark's manufacturing facilities in Flint, North Wales, and Northfleet in Kent. In total, the three schemes are expected to provide a total of 50MW of green hydrogen.

The shortlisting of all three green hydrogen projects submitted by Kimberly-Clark's partners coincides with the switch-on this week of a new purpose-built onshore wind farm expected to generate around 80% of Kimberly-Clark's UK electrical power needs.

Located in Cumberhead in South Lanarkshire, Scotland, the 12-turbine wind farm has taken just 18 months to build. It's the result of a power purchase agreement (PPA) between Kimberly-Clark and Octopus Renewables Infrastructure Trust (ORIT), a company managed by Octopus Energy Generation. It is also the first wind farm to supply Kimberly-Clark outside of North America. Furthermore, RES was recently awarded the full-scope asset management contract for the wind farm which will see it provide technical, commercial and financial asset management for the site.

Kimberly-Clark will take 160,000 megawatt hours from the wind farm every year, the equivalent of taking 37,000 vehicles off the road. The power will be used at Kimberly-Clark's manufacturing facilities at Barrow-in-Furness, Flint, and Northfleet, as well as its distribution centres in Chorley and Northfleet.

These renewable energy initiatives combined will enable Kimberly-Clark to achieve a total reduction of its greenhouse gas emissions in the UK & Ireland by 86% by the end of 2025 (vs 2015 baseline).

Dan Howell, Kimberly-Clark's UK and Ireland MD said: "These developments represent a significant stepping stone towards our big ambition to move solely to renewable energy to manufacture Andrex, Kleenex, Huggies, WypAll and Scott in the UK by 2030. We can only reach our decarbonization goals via innovative partnerships and cutting-edge technology.

These green hydrogen schemes and our spectacular new wind farm in Cumberhead are perfect examples of what our consumers, retail partners, stakeholders and employees expect us to do. A lot of hard work has gone into developing the green hydrogen projects and it's fantastic to see the UK government selecting them for the funding shortlist."

DESNZ expects projects on the HBMS shortlist to generate up to 250MW - with the three schemes submitted by Kimberly-Clark's partners accounting for just over 20% of that total. Contracts are expected to be awarded by the end of this year, with first projects aiming to be operational in 2025.

The Cumberhead wind farm is operational from April 2023, with Kimberly-Clark and ORIT working on an official opening event later this year.

View additional multimedia and more ESG storytelling from Kimberly-Clark Corporation on 3blmedia.com.

Contact Info:
Spokesperson: Kimberly-Clark Corporation
Website: https://www.3blmedia.com/profiles/kimberly-clark-corporation
Email: info@3blmedia.com

SOURCE: Kimberly-Clark Corporation

View source version on accesswire.com:
https://www.accesswire.com/748113/UK-Government-Hydrogen-Boost-To-Help-Power-Kimberly-Clark-Towards-100-Green-Energy-Target

FAQ

What projects did Kimberly-Clark develop for the Hydrogen Business Model Strategy?

Kimberly-Clark developed three green hydrogen projects shortlisted by the UK Government.

How much will Kimberly-Clark reduce natural gas consumption with its hydrogen projects?

The projects are expected to reduce natural gas consumption by 61% by the end of 2025.

What is the total MW capacity of the hydrogen projects selected by Kimberly-Clark?

The three projects will provide a total of 50MW of green hydrogen.

When will the hydrogen projects become operational?

The hydrogen projects are expected to become operational by the end of 2025.

How much renewable energy will the new wind farm generate?

The new wind farm will generate approximately 160,000 megawatt hours of renewable energy annually.