What is the significance of the £55 million green hydrogen project for Kimberly-Clark’s UK plant?

The £55 million green hydrogen project will enable Kimberly-Clark’s Barrow-in-Furness plant — which produces Kleenex and Andrex toilet paper — to run on green hydrogen later this decade, cutting its natural gas demand by 50% and reducing CO2 emissions by 18,300 metric tons annually. The plant, developed by a Schroders Capital and Carlton Power joint venture, is among the first commercial green hydrogen projects to advance in the UK following the government’s new subsidy program, and it relies on a committed off-taker agreement with Kimberly-Clark and public financial support to overcome green hydrogen’s high cost barrier.

How does the green hydrogen pricing and production scale compare to current energy alternatives and broader industry goals?

The developers have secured a hydrogen supply contract at £252.33 per megawatt hour — nearly six times the UK’s current wholesale natural gas price — highlighting green hydrogen’s current cost premium; however, officials expect costs to fall as the sector scales. The initial 30-megawatt facility, using Plug Power Inc. equipment, is part of a larger ambition by the Schroders–Carlton joint venture to build around 200 megawatts of green hydrogen capacity across the UK by 2030, aligning with national decarbonisation targets and marking a pivotal step toward industrial adoption of green hydrogen beyond pilot stages.

UK Kleenex, Toilet Paper Plant to Run on Green Hydrogen After $74 Million Deal

May 20, 2026

Kimberly-Clark's UK plant will utilize green hydrogen following a £55 million investment, cutting natural gas demand by 50% and reducing 18,300 metric tons of CO2 annually. This project is among the first commercial green hydrogen initiatives in the UK backed by government subsidies.

bloomberg

2026-05-20

UK Kleenex, Toilet Paper Plant to Run on Green Hydrogen After $74 Million Deal

UK Kleenex, Toilet Paper Plant to Run on Green Hydrogen After $74 Million Deal

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