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COINTURK FINANCE > Business > Kimberly-Clark Plans 100% Renewable Energy Shift for German Factory by 2029
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Kimberly-Clark Plans 100% Renewable Energy Shift for German Factory by 2029

Overview

  • Kimberly-Clark will transition its Koblenz factory to 100% renewable energy by 2029.

  • The project includes electrifying heating systems and securing renewable power purchase agreements.

  • German government support helps accelerate the shift away from fossil fuels.

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Kimberly-Clark is advancing its sustainability efforts with a significant milestone at its Koblenz, Germany, facility. The company intends to transition the site to fully renewable energy by 2029, marking it as the first of its tissue manufacturing plants to reach this target. The factory produces well-known brands, including Kleenex, Scottex, Scott, WypAll, Page, and Hakle. This move aligns with the company’s broader strategy of reducing its environmental footprint. The shift is expected to bring substantial reductions in emissions and contribute toward Kimberly-Clark’s long-term climate goals.

Contents
How will the factory transition to renewable energy?What role does government support play in this project?

In earlier announcements, Kimberly-Clark outlined similar commitments to cutting emissions across its global operations. The company has pursued renewable energy projects in various regions, such as wind and solar power agreements in North America. However, the Koblenz site marks a notable step as it aims for complete reliance on renewable sources. Compared to past sustainability initiatives, this project emphasizes electrification of heating systems, a move that has not been the primary focus in previous efforts.

How will the factory transition to renewable energy?

The process involves replacing natural gas-based heating infrastructure with electric alternatives. Specifically, the facility will transition its boiler, hood heaters, and related systems to electric power. Additionally, the plant will obtain electricity through various European power purchase agreements to secure offsite renewable energy. These measures collectively aim to eliminate reliance on fossil fuels from the site’s operations.

What role does government support play in this project?

Financial assistance from the German government is a key element in facilitating this transition. The project benefits from a Carbon Contract for Difference Award, a mechanism designed to encourage industries to adopt low-carbon technologies. This form of support helps offset costs associated with switching to renewable energy and accelerates the transition away from fossil fuel-based systems.

Kimberly-Clark has set a company-wide target to cut Scope 1 and 2 emissions by 50% by 2030. The Koblenz site’s shift to renewable energy is expected to contribute significantly to this objective, with an estimated reduction of 50,000 tons of carbon emissions annually. Achieving this milestone will demonstrate the feasibility of large-scale carbon reduction in tissue manufacturing.

Lisa Morden, Chief Sustainability Officer at Kimberly-Clark, stated:

“Announcing our first Kimberly-Clark tissue manufacturing site globally with a pathway to 100% renewable energy is an incredible milestone that demonstrates how we continue to progress on our decarbonization journey, through innovative cross-sector collaboration. We are proud to execute this decarbonization project that will unlock new technologies for Kimberly-Clark, enabling us to tackle the challenge of reducing direct greenhouse emissions, which represent 60% of our total emissions.”

While corporate sustainability commitments have increased in recent years, challenges remain in fully eliminating carbon emissions from industrial processes. Electrification of heating systems is a crucial step, but energy efficiency improvements and long-term renewable energy agreements are also necessary to ensure stable and cost-effective operations. The Koblenz project could serve as a model for other manufacturing sites seeking similar transitions. However, long-term success will depend on the availability of sufficient renewable energy infrastructure and continued financial support for decarbonization initiatives.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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