ITM Power Secures Green Hydrogen Contract with Octopus Energy Generation for Kimberly-Clark Plant

ITM Power (ITM.L) has announced a significant 12.5MW contract with Octopus Energy Generation to deploy its NEPTUNE V containerised green hydrogen systems at Kimberly-Clark's Northfleet manufacturing plant in Gravesend, Kent.

The deal marks a pivotal step in decarbonising the paper-making process for Andrex products, potentially influencing investor sentiment towards green technology stocks.

The green hydrogen produced will power a new dual-fuel boiler system at the mill, capable of operating on either hydrogen or natural gas to generate steam for paper manufacturing. This initiative aligns with growing environmental, social, and governance (ESG) investment trends and could attract further interest in ITM Power's stock.

Octopus Energy Generation is financing the Northfleet system through its managed funds and developing it via HYRO, its dedicated green hydrogen development vehicle.

HYRO received funding under the UK Government's Hydrogen Allocation Round 1 (HAR1), underscoring the project’s strategic importance and governmental support for green hydrogen initiatives. The facility is slated to be operational by the end of 2027, setting a timeline for investors to anticipate future revenue streams.

Dennis Schulz, CEO of ITM Power, stated, “We are proud that Octopus has selected us for this ground-breaking project, which will showcase the role of green hydrogen in the decarbonisation of the hard-to-electrify parts of the UK's manufacturing industry.”

Alex Brierley, Co-Head of Octopus Energy Generation's funds team, commented, “Heavy industries are a big part of global emissions, and with HYRO, we're determined to tackle this challenge head-on. Seeing Northfleet take shape is a fantastic signal, showcasing how building clean energy infrastructure and strengthening UK industry go hand in hand.”

Dan Howell, Vice President and Managing Director at Kimberly-Clark UK & Ireland, added: “This is a significant investment into a green hydrogen solution, and alongside other investments that support our ambition to move our UK manufacturing operations to 100% renewable energy.

“We are 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.”