Schneider Electric & Kimberly-Clark Announce Tax Credit Transfer ("TCT") Agreements to Advance Grid Resiliency

Rhea-AI Summary

Schneider Electric announced new Tax Credit Transfer (TCT) agreements facilitated for Kimberly-Clark to advance grid resiliency and support America's clean energy transition. Kimberly-Clark will fund four new battery energy storage projects in Texas, USA, demonstrating its commitment to decarbonization and renewable energy solutions. The TCT deals include:

• $82.5M for a 180 MW battery energy storage facility
• $68M for a 100 MW battery energy storage facility
• $55M for a 100 MW battery energy storage project
• $32M for a 100MW battery energy storage facility

These projects align with Kimberly-Clark's goals to reduce absolute GHG emissions by 50% by 2030 and progress towards 100% renewable electricity in North America by 2030. The company's current vPPAs produce clean power from wind in Texas, making up 40% of its total electricity use by U.S. operations in renewable energy.

Positive

• Kimberly-Clark is investing $237.5M in battery energy storage projects
• The projects will contribute to grid resiliency and clean energy transition
• Kimberly-Clark aims to reduce absolute GHG emissions by 50% by 2030
• The company is progressing towards 100% renewable electricity in North America by 2030
• 40% of Kimberly-Clark's U.S. operations electricity use comes from renewable energy

Negative

• None.

• New TCT agreements contribute to supporting America's clean energy transition through tax credit transferability under the Inflation Reduction Act (IRA).
• Projects are helping to pave the way for additional investments from the voluntary market to support developers fostering renewable energy projects.
• Through strategic guidance from Schneider Electric, Kimberly-Clark will fund four new battery energy storage projects, demonstrating its support of critical grid resiliency.

BOSTON, Sept. 23, 2024 /PRNewswire/ -- Schneider Electric, the global leader in the digital transformation of energy management and automation, today announced having facilitated several new TCT deals by Kimberly-Clark Corporation, one of the world's leading manufacturers of personal care and hygiene products and owner of household brands such as Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, and WypAll.

Since 2016, Schneider Electric has served as a strategic advisor to Kimberly-Clark in the manufacturer's ambitious decarbonization goals. These include a commitment to reduce absolute GHG emissions by 50% (1) by 2030 and progressing towards 100% renewable electricity in North America by 2030.

Most recently, Schneider Electric acted as a strategic advisor to Kimberly-Clark to help fund multiple battery energy storage projects as part of the rapid energy transition to green America's grid. These TCT deals represent one of the many approaches Kimberly-Clark is taking to advance sustainable solutions. The projects also serve as leading examples of how the voluntary market can support developers fostering key projects using the IRA's new tax credit transferability mechanism.

The work on these collective projects supports the advancement of battery energy storage in the Texas, USA, region, aligned with Kimberly-Clark's support of the green transition in renewable energy storage and generation. Kimberly-Clark's current vPPAs produce clean power from wind in Texas, which makes up 40% of its total electricity use by U.S. operations in renewable energy that Schneider Electric has advised on.

Details of the new Investment Tax Credit Transfer agreements include:

• A $82.5M TCT agreement, a 180 MW battery energy storage facility
• A $68M TCT agreement, a 100 MW battery energy storage facility
• A $55M TCT agreement, a 100 MW battery energy storage project
• A $32M TCT agreement, a 100MW battery energy storage facility

"Today's announcement is one of many examples of Kimberly-Clark's dedication to decarbonization and advancement of renewable energy solutions, and we hope that these types of innovative collaborations will continue to advance the green transition," said Lisa Morden, Kimberly-Clark's Chief Sustainability Officer.

"Kimberly-Clark's dedication to supporting the renewable energy landscape is evident in its contribution to the advancement of battery storage technology through tax credit transferability. Working together with Schneider, the company is paving the way for future investments from the voluntary market to support developers fostering innovative projects," said Steve Wilhite, President, Schneider Electric's Sustainability Business.

"Furthermore, Kimberly-Clark's commitment to funding the clean energy transition in response to the IRA underscores the company's dedication to sustainability. Tax credit transfers enable corporations to provide substantial financial support to developers; fostering projects crucial for accelerating America's energy transition, which Schneider Electric is proud to support," continued Wilhite.

Related resources: 

• Tax Credit Transferability & Corporate Buyers : Schneider Electric on-demand webinar
• (1) Footnote reference: https://www.kimberly-clark.com/en-us/esg/downloads

About Schneider Electric

Schneider's purpose is to create Impact by empowering all to make the most of our energy and resources, bridging progress and sustainability. At Schneider, we call this Life Is On.

Our mission is to be the trusted partner in Sustainability and Efficiency.

We are a global industrial technology leader bringing world-leading expertise in electrification, automation and digitization to smart industries, resilient infrastructure, future-proof data centers, intelligent buildings, and intuitive homes. Anchored by our deep domain expertise, we provide integrated end-to-end lifecycle AI enabled Industrial IoT solutions with connected products, automation, software and services, delivering digital twins to enable profitable growth for our customers.

We are a people company with an ecosystem of 150,000 colleagues and more than a million partners operating in over 100 countries to ensure proximity to our customers and stakeholders. We embrace diversity and inclusion in everything we do, guided by our meaningful purpose of a sustainable future for all.

www.se.com

Discover Life Is On  →  Follow us on: Twitter | Facebook | LinkedIn | YouTube | Instagram | Blog

Discover the newest perspectives shaping sustainability, electricity 4.0, and next-generation automation on Schneider Electric Insights.

Hashtags: #PressRelease #Sustainability #TaxCreditTransfer

View original content to download multimedia:https://www.prnewswire.com/news-releases/schneider-electric--kimberly-clark-announce-tax-credit-transfer-tct-agreements-to-advance-grid-resiliency-302255518.html

SOURCE Schneider Electric

FAQ

What is the total value of Kimberly-Clark's Tax Credit Transfer agreements for battery storage projects?

The total value of Kimberly-Clark's Tax Credit Transfer agreements for battery storage projects is $237.5 million, spread across four projects in Texas, USA.

What are Kimberly-Clark's sustainability goals mentioned in the press release?

Kimberly-Clark aims to reduce absolute GHG emissions by 50% by 2030 and progress towards 100% renewable electricity in North America by 2030.

How much of Kimberly-Clark's U.S. operations electricity use comes from renewable energy?

40% of Kimberly-Clark's total electricity use by U.S. operations comes from renewable energy, specifically from wind power in Texas.

What is the largest battery energy storage facility mentioned in the TCT agreements?

The largest battery energy storage facility mentioned is a 180 MW facility, with a TCT agreement value of $82.5 million.