Octopus Energy Generation is financing and managing an on-site green hydrogen project through Hyro, its hydrogen-focused development arm, to supply a dual-fuel boiler for steam generation in paper manufacturing.

ITM’s Neptune V systems are expected to be operational at the Gravesend site by the end of 2027.

The initiative is backed by the UK government under Hydrogen Allocation Round 1 (HAR1), placing it among the first commercial-scale green hydrogen projects to proceed to construction.

Under HAR1, the plant has secured contracts-for-difference-style support, guaranteeing a strike price of £241/MWh. The mechanism tops up revenues when gas-linked market prices fall below this level and claws back payments when they rise above it.

“Heavy industries are a big part of global emissions, and with Hyro, we’re determined to tackle this challenge head-on,” explained Alex Brierley, Co-Head of Octopus Energy Generation’s funds team.

“Seeing Northfleet take shape is a fantastic signal, showcasing how building clean energy infrastructure and strengthening UK industry go hand in hand.”

Ameresco was awarded an engineering and construction contract last September to install five new dual-fuel hydrogen and natural gas boilers at Kimberly-Clark’s Kleenex plant in Kent and the Andrex Cumbria facility.

With hydrogen production and the new boilers expected to be operational in 2027, Kimberly-Clark said the installations could cut natural gas consumption by up to 50%.