Through Signing a Memorandum of Understanding for Solar Power REC Trading
Expanding ESG Management and Accelerating Transition to Renewable Energy
SeAH Besteel Holdings and Equus Energy Korea are taking a commemorative photo after signing a memorandum of understanding. From the left in the photo: Seongjun Park, Director of SeAH Besteel Holdings; Youngju Yang, CEO; Seongwoo Yang, CEO of Equus; Eunwoo Jo, Executive Director. Photo by SeAH Besteel Holdings
[Asia Economy Reporter Donghoon Jeong] SeAH Besteel Holdings Co., Ltd. announced on the 30th that it has signed a memorandum of understanding (MOU) with Equus Energy Korea for a long-term REC (Renewable Energy Certificate) sales contract.
Through this MOU for the REC sales contract with Equus, SeAH Besteel Holdings has established a foothold to stably secure renewable energy at an annual average of 26,828 MWh produced by a 21MW-class solar power plant located in Jeollanam-do for 20 years. This corresponds to about 2-3% of SeAH Besteel's total annual electricity consumption.
Based on this MOU, the two companies plan to sign a contract within the first half of 2023. SeAH Besteel Holdings plans to use the renewable energy supplied from the solar power plant as electricity for its affiliates, including SeAH Besteel Co., Ltd. and SeAH Changwon Special Steel Co., Ltd., which are engaged in carbon emission reduction activities. It is expected to reduce approximately 12,325 tons of carbon emissions annually. Calculated as a carbon neutrality effect, this is equivalent to planting about 1.87 million pine trees per year.
The steelmaking processes of SeAH Besteel and SeAH Changwon Special Steel, affiliates of SeAH Besteel Holdings, use electric furnaces that utilize steel scrap as raw material, resulting in direct carbon emissions (Scope 1) about 2 to 3 times lower than blast furnace steelmaking processes that use iron ore as raw material. SeAH Besteel Holdings plans to reduce Scope 2 carbon emissions by producing 100% of its products using electric furnaces with significantly lower carbon emissions and by utilizing renewable energy electricity.
Meanwhile, Equus is a global infrastructure investment firm with extensive experience in renewable energy project development in the Asia-Pacific region. Since launching its Korean branch in 2018, it has continued investments and development in solar, offshore wind power, waste treatment, and resource recovery sectors, securing a solid domestic infrastructure portfolio. As Equus selected SeAH Besteel Holdings as the first long-term REC purchaser for the Shinan Solar Power Plant project, the two companies plan to further strengthen their partnership to accelerate the transition to renewable energy. This is also expected to serve as a valuable reference for Equus in supporting domestic companies' carbon emission reductions and achieving RE100 goals in the future.
Yang Young-joo, CEO of SeAH Besteel Holdings, said, "To expand SeAH Besteel Holdings' ESG management and achieve carbon emission reduction goals, we will accelerate the creation of carbon reduction outcomes through the start of the long-term REC sales contract, global certification of green steel, and securing additional renewable energy."
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