Schneider Electric & Kimberly-Clark Announce Tax Credit Transfer (“TCT”) Agreements To Advance Grid Resiliency
BOSTON, September 24, 2024 /3BL/ - 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
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