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(Sharecast News) - ITM Power announced a 12.5 megawatt contract with a project managed by Octopus Energy Generation on Thursday, to deploy its 'Neptune V' containerised green hydrogen systems at Kimberly-Clark's Northfleet manufacturing plant in Gravesend, Kent.
The AIM-traded firm said the project would produce green hydrogen to help decarbonise the paper-making process used to manufacture Andrex products.
It said the hydrogen would fuel a new dual-fuel boiler system at the mill that could operate on either hydrogen or natural gas to generate the steam required for paper production.
"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," said Dennis Schulz, chief executive of ITM Power.
The Northfleet system would be financed through funds managed by Octopus Energy Generation and was being developed via Hyro, Octopus's green hydrogen development vehicle focused on decarbonising hard-to-electrify, energy-intensive industries.
Hyro had secured funding under the UK government's Hydrogen Allocation Round 1, with the facility expected to be operational by the end of 2027.
Alex Brierley, co-head of Octopus Energy Generation's funds team, said the project highlighted the role of clean energy investment in reducing industrial emissions.
"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 and Ireland, said the project represented a significant investment in green hydrogen alongside other initiatives to move the group's 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," he said.
At 0831 GMT, shares in ITM Power were up 3.02% at 64.8p.
Reporting by Josh White for Sharecast.com.