Kimberly-Clark’s £125 Million Green Hydrogen Investment: A Turning Point for UK Manufacturing

Problem: Industrial Emissions in the UK

Manufacturing is one of the most difficult sectors to decarbonise. It relies heavily on fossil fuels for high-temperature industrial processes, particularly the production of steam. While many consumers are becoming more conscious of carbon footprints, few realise that household essentials such as toilet paper and facial tissues are tied to large energy bills and substantial carbon dioxide emissions.

UK manufacturers face growing pressure to meet national net-zero targets. However, for industries like paper manufacturing, replacing fossil fuels is far from straightforward. The path to industrial decarbonisation demands bold investments and innovative technology.

Why the Status Quo is Unsustainable

At present, Kimberly-Clark’s UK factories in Barrow-in-Furness and Northfleet burn natural gas to generate the steam required for tissue production. This method is not only carbon intensive but also leaves the company exposed to volatile energy prices and future regulatory pressures.

To address this, Kimberly-Clark has announced plans to cut its UK natural gas use by 50 percent by 2027. The solution lies in green hydrogen, a zero-emission fuel produced by electrolysing water using renewable electricity.

The projects are backed by the UK Government’s Hydrogen Allocation Round One. This is part of a broader industrial strategy to accelerate the adoption of green hydrogen through targeted subsidies, infrastructure development and private-sector partnerships.

The Solution: Kimberly-Clark’s Green Hydrogen Commitment

Kimberly-Clark has pledged over £125 million to fund green-hydrogen plants at two of its largest UK manufacturing sites. This investment is being made in collaboration with Carlton Power and HYRO, a joint venture between Octopus Energy Generation and RES.

Key Project Details

• The Barrow-in-Furness plant will receive a hydrogen facility capable of producing 100 gigawatt-hours (GWh) of green hydrogen annually.
• The Northfleet plant in Kent will receive a smaller facility with a production capacity of 47 GWh per year.

Combined, these two plants are expected to reduce Kimberly-Clark’s direct carbon dioxide emissions by approximately 28,500 tonnes each year. That is roughly equivalent to taking 20,000 petrol cars off the road in the UK.

Industry and Government Voices

Dan Howell, Vice President and Managing Director of Kimberly-Clark UK and Ireland, described the move as a pivotal step forward. He said:

"Now is the right time for us to tap into green hydrogen’s significant potential. We are proud to be the first UK consumer-goods manufacturer to embrace green hydrogen at scale and overcome the technical challenge."

UK Industry Minister Sarah Jones also praised the investment:

"This government is rolling out hydrogen at scale for the first time. Hydrogen will help us cut industrial emissions and support Britain’s industrial renewal by creating thousands of jobs in our industrial heartlands."

What This Means for UK Manufacturing

Kimberly-Clark’s investment sends a powerful message to the wider manufacturing sector. Green hydrogen is no longer a distant promise; it is a practical solution that can be deployed at scale today. With government support, more manufacturers may soon follow suit, helping the UK to reduce emissions across hard-to-abate sectors such as chemicals, steel and cement.

These projects are part of the first wave of hydrogen projects supported through the government’s Hydrogen Production Business Model and Net Zero Hydrogen Fund. These frameworks are designed to close the gap between the cost of green hydrogen and its fossil-based alternatives, making decarbonisation more economically viable.

Important Considerations

While green hydrogen is a major leap forward, its environmental benefits depend on the source of electricity used for electrolysis. If the electricity comes from renewable sources such as wind or solar, the hydrogen produced is genuinely clean. However, if fossil fuels power the grid, the benefits are significantly reduced.

Alewk has published several articles exploring the importance of renewable electricity in the hydrogen value chain. Readers interested in the full picture can browse our resources on solar energy, battery storage and grid transformation.

Call to Action: Your Role in the Transition

Kimberly-Clark’s commitment is a positive sign, but true industrial decarbonisation requires collective effort. Here are a few steps you can take:

• Support brands that are investing in clean technology and committing to measurable climate goals.
• Share this article to raise awareness about the role of hydrogen in transforming UK industry.
• Engage with policymakers by calling for continued support for green hydrogen and other low-carbon technologies.

Final Thoughts

Kimberly-Clark’s £125 million investment in green hydrogen is more than a corporate sustainability milestone. It is a blueprint for the future of manufacturing in the UK. By pioneering hydrogen integration in tissue production, the company is showing what is possible when ambition meets innovation.

As the UK moves closer to its 2050 net-zero target, investments like these will play a critical role. The shift to green hydrogen is not just about reducing emissions; it is about reimagining how we power industry in a cleaner, more resilient world.