Kraft Heinz Partners With Carlton Power to Deliver Company';s First-Ever Renewable Green Hydrogen Project in the UK
- The proposed renewable green hydrogen plant has the potential to significantly reduce carbon emissions at Kraft Heinz's Kitt Green manufacturing plant.
- The project aims to meet more than 50% of the plant’s annual natural gas demand and reduce carbon emissions by 16000T/yr.
- The hydrogen will be produced by an electrolyser using electricity generated from renewable sources, primarily wind and solar power.
- The agreement with Carlton Power is a significant step forward in Kraft Heinz's efforts to reduce carbon emissions and achieve their global goal of net zero emissions by 2050.
- The project is contingent on securing financial support from the UK Government's Hydrogen Allocation Round (HAR2), which may introduce uncertainty in the timeline and operationalization of the plant.
- The construction of the renewable hydrogen scheme is earmarked to enter operation in 2026, which may be considered a longer timeline for some investors.
The commitment by Kraft Heinz to develop a green hydrogen facility at its Kitt Green manufacturing plant represents a strategic move towards sustainable business practices. By aiming to fuel over half of the plant's natural gas demand with hydrogen produced from renewable sources, the company not only supports its net zero emissions goal but also positions itself favorably in the eyes of increasingly environmentally-conscious consumers and investors.
This initiative may also serve as a hedge against volatile fossil fuel prices, potentially stabilizing operational costs in the long run. However, the upfront investment of £40m and the reliance on government financial support underscore the significant costs associated with transitioning to green energy solutions. Stakeholders should consider the balance between long-term savings and immediate capital requirements.
The partnership between Kraft Heinz and Carlton Power signals a noteworthy advancement in the UK's energy sector, particularly in the green hydrogen niche. Green hydrogen, being at the forefront of renewable energy discussions, has the potential to revolutionize energy consumption patterns in the industrial sector.
The success of this project could encourage further development in the hydrogen economy, potentially leading to a decrease in costs due to economies of scale and technological advancements. However, the project's dependency on the UK Government's Hydrogen Production Business Model (HPBM) for financial viability raises questions about the sustainability of such ventures without government incentives.
Kraft Heinz's foray into renewable hydrogen energy is reflective of a broader market trend where companies are increasingly investing in clean energy solutions. This move is likely to resonate with the growing segment of the market that favors companies with strong environmental, social and governance (ESG) credentials.
From a competitive standpoint, the company could gain a first-mover advantage in its industry by reducing its carbon footprint and potentially lowering energy costs in the long-term. However, the timeline for the project's completion in 2026/27 and the subsequent operational phase suggests that any financial benefits from the project will not be realized in the immediate future, which investors should take into account when assessing the company's short-term financial outlook.
Proposed project has the potential to fuel at least
Kitt Green is one of the largest food processing plants in
The proposed 20MW Kitt Green hydrogen plant, the first to be taken forward by Kraft Heinz globally, will meet more than
The Kitt Green project is the fifth green hydrogen project that Carlton Power is taking forward within the
Eric Adams, Hydrogen Projects Director at Carlton Power, said: “We’re delighted to be working with Kraft Heinz to bring forward a green hydrogen facility at Kitt Green to help the company accelerate its efforts to decarbonise their operations. It is critical that projects like this are brought forward to support British companies, especially in manufacturing, in reducing their carbon emissions and reaching Net Zero.”
Jojo Lins De Noronha, President,
Subject to planning approval and financing, the
Over the next 12-18 months, Kraft Heinz and Carlton Power will seek to obtain planning permission for the scheme. In parallel, the two companies will work together to obtain grant funding and operational financial support from the
The green hydrogen scheme is Carlton Power’s third to be developed in the North West of
In 2021, Kraft Heinz announced its goal to achieve net zero greenhouse gas emissions across its operational footprint (Scope 1 and Scope 2) and entire global supply chain (Scope 3) by 2050.
ABOUT THE KRAFT HEINZ COMPANY
We are driving transformation at The Kraft Heinz Company (Nasdaq: KHC), inspired by our Purpose, Let’s Make Life Delicious. Consumers are at the centre of everything we do. With 2022 net sales of approximately
Download the latest Kraft Heinz ESG report to learn more about our climate ambitions and progress at www.kraftheinzcompany.com/esg.
ABOUT CARLTON POWER
Carlton Power has 25 years of development experience in the
In December 2023, Carlton was successful in Round One of the
In May 2023, Carlton Power and Schroders Greencoat, the specialist investment manager, formed a joint venture company, Green Hydrogen Energy Company Ltd (“GHECO”), to accelerate the development of green hydrogen projects in the
In October 2023, Business Green listed Carlton Power in its list of Top 50 green pioneers in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240205000737/en/
The Kraft Heinz Company:
Rosie Brierley, Corporate Communications Manager: Rosie.Brierley@KraftHeinz.com
Marissa Munnings, Corporate Communications Director: Marissa.Munnings@KraftHeinz.com
Carlton Power
Eric Adams, Projects Director: eadams@carltonpower.co.uk / 07803 085942
Paul Taylor, Taylor Keogh Communications: paul@taylorkeogh.com / 07966 782611
Source: The Kraft Heinz Company
FAQ
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