ITM Power Signs 12.5 MW Green Hydrogen Contract with Octopus Energy Generation for Kimberly-Clark Manufacturing Plant
ITM Power has signed a contract with a project managed by Octopus Energy Generation to deploy its NEPTUNE V containerized green hydrogen systems at Kimberly-Clark's Northfleet manufacturing plant in Gravesend, Kent. The project will produce green hydrogen to decarbonize the paper-making process used to manufacture Andrex products.
Project Details and Technology
The green hydrogen will power a new dual-fuel boiler system at the mill, which can operate on hydrogen or natural gas to generate the steam needed for paper manufacturing. The NEPTUNE V systems will be deployed as containerized units at the Gravesend facility.
The facility is anticipated to be operational by the end of the calendar year 2027. The project represents a significant step in applying green hydrogen technology to industrial manufacturing processes.
Financing and Development Structure
The Northfleet system will be financed through funds managed by Octopus Energy Generation and is being developed through HYRO, Octopus's dedicated green hydrogen development vehicle. HYRO was created to drive decarbonization across hard-to-electrify, energy-intensive industries.
HYRO was awarded funding under the UK Government's Hydrogen Allocation Round 1 (HAR1), and this contract with ITM Power further advances the project. The partnership represents a collaboration between private sector financing and government support for hydrogen infrastructure development.
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Industry Leadership and Manufacturing Impact
According to Dan Howell, Vice President and Managing Director at Kimberly-Clark UK & Ireland, this represents a significant investment in a green hydrogen solution, alongside other investments that support the company's ambition to move its UK manufacturing operations to 100% renewable energy. Howell stated that Kimberly-Clark is “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.”
The project specifically targets the decarbonization of paper-making processes at the manufacturing facility that produces Andrex products, demonstrating the application of green hydrogen technology in consumer goods manufacturing.
Executive Perspectives on Decarbonization
Dennis Schulz, CEO of ITM Power, expressed pride that Octopus has selected the company for this project, describing it as “ground-breaking” and stating that it “will showcase the role of green hydrogen in the decarbonization of the hard-to-electrify parts of the UK's manufacturing industry.”
Alex Brierley, Co-Head of Octopus Energy Generation's funds team, emphasized the significance of heavy industries in global emissions, stating that “with HYRO, we're determined to tackle this challenge head-on.” Brierley described seeing Northfleet take shape as “a fantastic signal, showcasing how building clean energy infrastructure and strengthening UK industry go hand in hand.”
Company Background and Technology
ITM Power was founded in 2000 and ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004. The company is headquartered in Sheffield, England, and designs and manufactures electrolyzers based on proton exchange membrane (PEM) technology to produce green hydrogen, which the company describes as “the only net zero energy gas,” using renewable electricity and water.
The company's NEPTUNE V systems represent containerized green hydrogen production technology designed for industrial applications. The technology enables the production of green hydrogen, which can be used as an alternative to natural gas in industrial processes that require steam generation.
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