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SEOUL, South Korea, Aug. 29, 2023 /PRNewswire/ -- LG Innotek has announced on the 29th that it signed a direct PPA(Power Purchase Agreement) with SK E&S as part of ways to achieve '2030 RE100 (Renewable Electricity 100%)'.
Park Yeongsu, Head of Safety & Environment Division of LG Innotek (right) and Seo Kunki, Head of Renewables Business Division of SK E&S (left), attended the signing ceremony for a direct Power Purchase Agreement (PPA) for renewable energy held at SK E&S headquarters in Jongno-gu, Seoul on the afternoon of the 22nd.
The direct PPA is an agreement between the power supplier and corporation to directly trade renewable energy. It substantially contributes to the greenhouse gases reduction of the corporation since the corporation can procure renewable energy for up to 20 years.
Under this contract, LG Innotek will stably receive a 10 MW (megawatts) of renewable energy every year for the next 20 years. LG Innotek's Gumi plant will receive renewable energy purchased from SK E&S first from this December. LG Innotek plans to gradually increase the number of worksites to supply renewable energy by next year.
Starting with this first direct PPA, LG Innotek now can accelerate the execution of its strategy to achieve '2030 RE100'.
"In 2022, about 90% of the greenhouse gases emitted by LG Innotek was due to electricity. This contract is expected to reduce 6,000 tons of greenhouse gases annually, which is equivalent to planting 900,000 new pine trees," said an official from LG Innotek.
Last year, LG Innotek joined the RE100 Initiative to fulfill its corporate social responsibilities and actively respond to the crisis of global climate change. Especially, LG Innotek drew attention from the industry by revealing a challenging goal of changing 100% of electricity used at worksites to renewable energy by 2030, 20 years earlier than 2050, which is the requirement for membership.
LG Innotek achieved a renewable energy conversion rate of 22% (RE22) by adopting Korea Electric Power Corporation's green premium and installing self-generated photovoltaic facilities in the Gumi/Magok/Paju worksites in 2022.
In accordance with 'the RE100 roadmap', LG Innotek adopted a strategy to additionally secure a stable renewable energy supply chain by signing the direct PPA and purchasing the REC (Renewable Energy Certificate) at the same time.
"PPA with SK E&S has a special meaning in that we have entered a critical phase of 'the 2030 RE100 roadmap'. We will continue our efforts to transit to renewable energy as a leading ESG management company that provides differentiated customer value." said Park Yeongsu, Head of Safety & Environment Division of LG Innotek.
"It is a pleasure that SK E&S joined us in our journey to global RE100 implementation and greenhouse gas emissions reduction. We will continue to be a reliable partner for domestic companies making efforts to transit to renewable energy." Said Seo Kunki, Head of Renewables Business Division of SK E&
Direct Power Purchase Agreement (PPA)
The PPA is a system that electricity users and renewable energy suppliers directly sign a power purchase agreement outside of the electricity market. This policy is highly preferred by RE100 implementation corporations since they can receive renewable energy in the long term.
RE100
RE100 is the global initiative that promises to convert 100% of the electricity used by companies to renewable energy such as wind and solar power by 2050. RE100 member companies are required to fulfill the interim goal of 60% transition to renewable energy by 2030 and 90% by 2040. As of August 2023, 415 global companies, including LG Innotek, have joined RE100.
