SK E&S-SK Materials Sign Largest Domestic Renewable Energy PPA

Supply of 50MW-Class Solar Renewable Energy by 2044

Chu Hyung-wook, President of SK E&S (left), Lee Yong-wook, President of SK Materials (center), and Lee Kyu-won, President of SK Specialty (right), are taking a commemorative photo after signing a renewable energy power trading contract on the 29th at the SK Seorin Building in Jongno-gu, Seoul.

[Asia Economy Reporter Oh Hyung-gil] SK E&S and SK㈜ Materials are starting collaboration to achieve carbon neutrality.

SK E&S and SK Materials' subsidiary SK Specialty announced on the 1st that they signed a 'Renewable Energy Direct Power Purchase Agreement (PPA)' at the SK Seorin Building in Jongno-gu, Seoul on the 29th.

According to the contract, SK Specialty will receive renewable energy power of 50 megawatts (MW) produced from a solar power plant in the Chungnam region from SK E&S for 20 years from 2024 to 2044.

As the largest renewable energy PPA in Korea, SK Specialty is expected to replace about 10% of the required power with renewable energy by 2030 through this contract and achieve a greenhouse gas reduction effect of up to 600,000 tons.

SK Materials, which declared joining 'RE100 (100% Renewable Energy)' in 2020, plans to introduce and expand renewable energy PPAs not only to SK Specialty but also to other subsidiaries such as SK Trichem and SK Materials Performance. They will actively engage in greenhouse gas reduction activities and secure renewable energy by utilizing various methods such as direct reduction, green premium bidding, purchasing renewable energy certificates (REC), and voluntary carbon credit purchases.

SK Materials is expected to achieve its goals before 2030, faster than the government's 2050 carbon neutrality target.

Additionally, SK E&S, as the largest private power producer, is operating and developing renewable energy projects domestically and internationally exceeding 3GW and plans to expand to 7GW by 2025.

Chu Hyung-wook, CEO of SK E&S, said, "We have achieved the largest renewable energy direct purchase contract in Korea," and added, "As more domestic and international companies declare RE100, SK E&S will provide suitable solutions and strive to contribute to national greenhouse gas reduction in the mid to long term."

Lee Yong-wook, CEO of SK Materials, said, "This shows the efforts of SK Materials and its subsidiaries to achieve carbon neutrality and RE100," and added, "We will become a global top advanced materials technology company by seeking optimal solutions to respond to climate change and practicing active ESG management applied on-site."