Kimberly-Clark Expands Decarbonization with New European PPAs
Kimberly-Clark (K-C), a global leader in the manufacturing of personal care and hygiene products, has announced a strategic collaboration with Independent Power Producer (IPP) BNZ to expand its renewable energy initiatives. This partnership involves the implementation of three new virtual solar power purchase agreements (vPPAs) in Italy and Spain. The agreement marks a significant step in K-C’s broader commitment to sustainability and decarbonization as it seeks to transition toward greener energy sources for its European operations.
Under the terms of the vPPAs, K-C will source renewable electricity from two solar power facilities in Italy—Camposcala and Rinaldone, both located in the Lazio region—and one in Spain, Santa Catalina, in Andalusia. These solar farms are projected to generate approximately 164 GWh of renewable electricity annually. The energy output from these facilities is expected to cover over 40% of the total electricity consumption of K-C’s Western & Central European production sites, including those in Germany, Spain, Italy, France, and Czechia. This initiative will provide virtual power for the production of some of the company’s most recognized brands, such as Kleenex, Scottex, Scott, WypAll, Page, and Hakle. The launch of these solar energy projects is scheduled for the second quarter of 2025.
A Step Forward in Sustainable Manufacturing
This initiative is part of K-C’s broader efforts to drive sustainability and reduce its carbon footprint. As a company committed to achieving significant environmental goals, K-C has pledged to cut its scope 1 and 2 greenhouse gas emissions by 50% by 2030, using a 2015 baseline. The partnership with BNZ represents a crucial component of this commitment, enabling the company to transition toward cleaner energy solutions while maintaining production efficiency.
Oriol Margó, Sustainability Leader at Kimberly-Clark, emphasized the importance of this partnership in the company’s sustainability strategy. “Kimberly-Clark’s collaboration with BNZ is another example of our dedication to making progress in our decarbonisation journey. The renewable energy generation of the new solar farms will be equivalent to over 40% of the total electricity consumed by our European production facilities. Energy transformation is a key priority for us, and through these projects, we are increasing the amount of renewable electricity available in the grids that we draw from, which also benefits the community. We continue to invest in the future of the planet, our business, and our industry, with our consumers and customers in mind, and hope to encourage other organizations to do the same.”
Rodrigo López, Head of Revenues at BNZ, highlighted the broader implications of the agreement for the renewable energy sector. “This multi-country PPA agreement with a leading industrial client committed to sustainability represents a significant milestone for BNZ. At the same time, it reflects a growing trend: more and more companies are choosing long-term contracts that not only ensure energy stability but also reinforce their responsibility to create a more sustainable world. This shift not only benefits businesses but also drives meaningful progress for society and the economy as a whole.”
Expanding Renewable Energy Initiatives
The introduction of these vPPAs aligns with Kimberly-Clark’s ongoing strategy to invest in renewable energy sources globally. Over the past few years, the company has undertaken multiple projects to integrate cleaner energy into its operations. Some recent key initiatives include:
- Scotland, UK (2023): Opening a new £75 million onshore wind farm capable of generating 160,000 MWh of electricity annually.
- Cape Town, South Africa (2024): Installing rooftop solar photovoltaic systems at K-C’s manufacturing site, producing 3,700 MWh per year.
- Salamanca, Spain (2025): Completing the installation of one of the largest rooftop solar photovoltaic systems at K-C’s manufacturing site, with an annual generation capacity of 6,500 MWh.
Each of these initiatives reflects the company’s broader goal to integrate renewable energy into its manufacturing processes and supply chains, reducing reliance on fossil fuels and minimizing its carbon footprint.
The Role of Virtual Power Purchase Agreements
Virtual power purchase agreements (vPPAs) are emerging as an effective strategy for corporations to invest in renewable energy without directly managing energy infrastructure. Unlike traditional power purchase agreements (PPAs), which involve the direct delivery of power to a company’s facilities, vPPAs function as financial contracts where the buyer—Kimberly-Clark, in this case—agrees to purchase renewable energy at a fixed price. The electricity generated is fed into the national grid, contributing to the overall increase in renewable energy supply.
For Kimberly-Clark, these vPPAs offer multiple advantages:
- Carbon footprint reduction: By supporting renewable energy projects, K-C reduces its reliance on fossil fuels and decreases its greenhouse gas emissions.
- Energy price stability: Locking in energy prices through long-term agreements helps mitigate market volatility and ensures predictable costs.
- Support for sustainability commitments: Investing in vPPAs allows companies to demonstrate their environmental responsibility and progress toward global sustainability goals.
The partnership with BNZ aligns with these benefits, enabling K-C to meet both its operational and sustainability objectives while helping to transition the European energy market toward cleaner alternatives.
BNZ’s Growing Presence in the Renewable Energy Market
For BNZ, this agreement with K-C represents a significant milestone in its expansion within the renewable energy sector. The company, an affiliate of Nuveen Infrastructure, has been steadily growing its portfolio of renewable energy projects across Europe. As part of its long-term strategy, BNZ aims to deploy more than 1.7 GW of renewable energy capacity in the region in the coming years.
BNZ’s involvement Kimberly-Clark in long-term PPA agreements with multinational corporations helps to accelerate the adoption of clean energy by providing stable financial backing for renewable infrastructure. This collaboration with Kimberly-Clark further cements BNZ’s reputation as a leading provider of sustainable energy solutions for industrial clients committed to reducing their environmental impact.
The Future of Decarbonization at Kimberly-Clark
Looking ahead, Kimberly-Clark is expected to continue its push toward decarbonization, leveraging innovative energy solutions to meet its sustainability targets. The company’s approach includes:
- Expanding renewable energy partnerships: Collaborating with more renewable energy providers to diversify its clean energy portfolio.
- Enhancing energy efficiency: Implementing advanced technologies and processes to reduce energy consumption in manufacturing operations.
- Electrification of production processes: Transitioning away from fossil fuel-based systems in favor of electric-powered machinery and sustainable alternatives.
- Investing in carbon offset programs: Supporting reforestation, carbon capture, and other initiatives to offset any remaining emissions.
As more corporations recognize the importance of sustainability, Kimberly-Clark’s leadership in integrating renewable energy into its operations sets a benchmark for other industry players. By prioritizing environmental responsibility while maintaining production excellence, K-C is not only reducing its carbon footprint but also encouraging broader adoption of clean energy solutions across the global manufacturing sector.
Kimberly-Clark’s new vPPA agreements with BNZ represent a major step forward in its decarbonization strategy. By investing in solar energy projects in Italy and Spain, the company is strengthening its commitment to sustainability while ensuring energy stability for its European operations. These agreements contribute significantly to the company’s goal of reducing greenhouse gas emissions by 50% by 2030 and reinforce the growing trend of corporations adopting long-term renewable energy contracts.
The collaboration between K-C and BNZ highlights the increasing role of renewable energy in industrial sectors and sets an example for other companies looking to transition to greener operations. As sustainability continues to shape the future of manufacturing, initiatives like these demonstrate the tangible benefits of corporate investment in clean energy, both for businesses and the environment.
