Signed Korea’s largest direct PPA… Carbon reduction effect of 39,000 tons per year
Hyundai Motor Company
announced on the 23rd that it signed a solar renewable energy PPA (Power Purchase Agreement) business agreement with Hyundai Engineering & Construction at Hyundai Motor Company’s Ulsan plant.
Key officials including Kim Jin-taek, executive director of Hyundai Motor Company’s domestic production support department, and Choi Jae-beom, executive director of Hyundai E&C’s development division, attended the signing ceremony.
PPA is a system in which electricity users purchase renewable energy from renewable energy power generation companies and is the most widely used method of implementing RE100 (100% use of renewable energy). Above all, it allows renewable energy to be procured stably over a long period of time. This is an advantage.
Through this PPA business agreement, Hyundai Motor Company plans to procure 64 MW (megawatts) of solar renewable energy for the Ulsan plant by 2025, which is expected to reduce carbon emissions by about 39,000 tons annually. This is the same effect as absorbing the carbon emissions from 23,000 compact sedans that drive 15,000 km per year for one year.
This agreement is meaningful in that it is Hyundai Motor Company’s full-fledged step toward achieving RE100 by 2045. RE100 is a campaign led by The Climate Group, a global non-profit organization, and CDP (Carbon Disclosure Project), a global environmental management certification body, to convert 100% of the company’s electricity use to renewable energy by 2050.
Previously, Hyundai Motor Company was approved to join the RE100 initiative along with three affiliates within the group, including Kia, Hyundai Mobis, and Hyundai Wia, in April last year. Hyundai Motor Company plans to use 100% renewable energy by 2045, five years earlier than the recommended global RE100 goal of 2050 and is accelerating the transition to renewable energy at domestic and overseas business sites.
In addition to PPA implementation measures, Hyundai Motor Company plans to invest more than 200 billion won in building solar power self-generation infrastructure within domestic business sites by 2025 and to cover 60% of the electricity at all domestic and overseas business sites with renewable energy by 2030.
By business site, Hyundai Motor Company’s domestic business sites plan to build solar power generation facilities on idle sites and building roofs in order to achieve 10% renewable energy use by 2025 and 30% renewable energy use by 2030. Based on these facility investments, the plan is to secure more than 150 MW of self-generated solar power and 300 MW of PPA by 2030.
Overseas business sites plan to use 100% renewable energy by 2030. Considering geopolitical factors and the renewable energy environment for each business site, we plan to build a diverse portfolio, including self-generation, PPA, and REC (Renewable Energy Certificate) purchases.
In fact, Hyundai Motor Company’s Czech plant (HMMC) and Indonesian plant (HMMI) completed the use of 100% renewable energy through REC purchases last year and this year, respectively, and its plants in the United States (HMMA/HMGMA), India (HMI), and Turkiye (HAOS) is increasing the proportion of renewable energy use with the goal of achieving RE100 by 2025.
A Hyundai Motors official said, “We will proactively respond to climate change through the stable supply of high-quality renewable energy power and begin in earnest to convert domestic business sites to renewable energy,” adding, “We will demonstrate the practice of carbon-neutral management by building solar power generation facilities.” “He said.