Kimberly-Clark Signs £125m Hydrogen Supply Deal to Replace Gas Usage
Key Ideas
- Kimberly-Clark has signed a £125m contract with two hydrogen facilities in Barrow-in-Furness and Northfleet to reduce natural gas consumption by 50% in UK production lines by 2027.
- The hydrogen production facilities are expected to be operational in 2027, creating employment opportunities in Barrow and securing commercial security for the new facilities.
- The new hydrogen supply deal is part of a larger initiative by the UK government, with a total of ten hydrogen projects receiving funding to transition towards cleaner energy sources.
Kimberly-Clark, the producer of well-known brands like Andrex and Kleenex, has made a significant step towards reducing its reliance on natural gas in production by signing a £125m hydrogen supply deal. The company has partnered with two hydrogen facilities in Barrow-in-Furness, Cumbria, and Northfleet, Kent, to receive hydrogen exclusively for its manufacturing processes. This move is expected to bring a 50% reduction in natural gas consumption by 2027, contributing to sustainability goals.
The hydrogen production facilities, expected to be operational in 2027, are not only aimed at reducing environmental impact but also at creating job opportunities. The Barrow hydrogen scheme alone is anticipated to employ around 200 individuals during construction and 10 full-time positions post-operation. Additionally, the initiative is set to provide commercial security to the new facilities, ensuring a stable supply of hydrogen for Kimberly-Clark's operations.
This development aligns with the broader efforts of the UK government to promote cleaner energy sources. Ten hydrogen projects, including those in Barrow and Northfleet, have received government funding to support the transition towards hydrogen-based production. The positive sentiment surrounding this hydrogen supply deal highlights a step forward in sustainable industrial practices and economic growth in the region.