Schneider Electric announced several new tax credit transfers with Kimberly-Clark Corporation, a manufacturer of personal care and hygiene products.
Kimberly-Clark committed to reducing absolute GHG emissions by 50% by 2030 and progressing toward 100% renewable electricity in North America by 2030.
Schneider Electric has served as a strategic advisor to the manufacturer on decarbonization, which led to the funding of multiple battery energy storage projects. In April the Internal Revenue Service (IRS) released final guidance for the transfer of clean energy tax credits, a provision within the Inflation Reduction Act (IRA) and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) act that allow tax credit owners to sell their credits to other entities with a tax appetite.
Details of the Kimberly-Clark Investment Tax Credit Transfer (TCT) agreements include:
- $82.5M TCT agreement, a 180 MW battery energy storage facility
- $68M TCT agreement, a 100 MW battery energy storage facility
- $55M TCT agreement, a 100 MW battery energy storage project
- $32M TCT agreement, a 100 MW battery energy storage facility
The IRS confirmed in the final guidance that there are no restrictions on the ability of project owners to obtain loans secured by a tax credit sale agreement, either from a tax credit buyer or a third-party lender.
These TCT deals support the manufacturer’s sustainability goals while supporting developers as they build projects that enhance critical grid resiliency.
“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.
Schneider Electric reports that these energy storage projects will be located in Texas.
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