£125m hydrogen supply deal to replace gas usage

A hydrogen production facility is set to be built in Barrow-in-Furness

Tissue maker Kimberly-Clark has signed a £125m contract with two hydrogen facilities to reduce the amount natural gas used in its production line

The Andrex and Kleenex producer signed a long-term deal receive hydrogen from the upcoming Carlton Power facility in Barrow-in-Furness, Cumbria, and the HYRO plant in Northfleet, Kent, which are expected to be operational in 2027.

The facilities have already secured funding and planning permission and will be built near existing Kimberly-Clark plants.

The company said that, as a result of the deal, from 2027 it expected to see a 50% reduction to its 2024 consumption of natural gas across its UK production lines.

The new facilities will produce and store hydrogen for the exclusive use of Kimberly-Clark.

It would replace fossil-fuel natural gas used for steam generation in the manufacture of toilet and facial tissues, the company said.

Kimberly-Clark said it expected construction on the plants to start in early 2026 and for the projects to be fully operational in the first half of 2027.

It added that the deals would help provide commercial security to the new facilities.

MP for Barrow and Furness Michelle Scrogham said it was "great news for the area".

"The Barrow hydrogen scheme is expected to employ around 200 people during its construction and around 10 people full-time once in operation," she said.

It comes as the government confirmed that a total of ten hydrogen projects it has helped fund across the country, including those in Barrow and Northfleet, had signed contracts and could proceed to becoming operational.