LG Chem said on Friday that it has secured a 20-year deal to purchase clean electricity from two wind farms in South Korea, as part of its efforts to reduce carbon emissions and achieve net zero by 2050.
Facilitated by the state-run utility Korea Electric Power Corporation, LG Chem formed a power purchase agreement with ST International, an energy trading company, and Shinhan Asset Management, the owners of the two wind farms, with a combined capacity of 241 megawatts, located in Yeongdeok and Yangyang, North Gyeongsang Province.
Under the agreement, LG Chem will receive 615 gigawatt-hours of energy annually -- the largest amount of wind-generated renewable energy purchased by a private company in South Korea.
The deal, which also includes renewable energy certificates, or RECs, will take effect starting in 2026 and will continue for 20 years. Meanwhile, the exact amount of the deal was not disclosed immediately.
LG Chem said the decision to secure this renewable energy deal aims to strengthen its leadership in global low-carbon efforts and respond to increasing demands from its global clients to use eco-friendly energy. The company plans to use only renewable energy across its facilities producing battery and eco-friendly materials. For example, its cathode plant in Cheongju will be fully powered by renewable energy.
"To provide differentiated value to our customers, LG Chem will continuously strive to transition to eco-friendly energy and build its business portfolio based on sustainability, including battery materials and eco-friendly sustainability materials,” said LG Chem Vice President Lee Jong-gu.
Earlier in 2020, LG Chem announced its industry-first initiative to transition fully to renewable energy and achieve net zero emissions by 2050.
