SK Chemical Introduces Virtual Power Solar Energy

SK E&S Signs 10MW-Class Purchase Agreement

Kim Ki-dong, Head of Management Support Division at SK Chemicals (right), and Seo Geon-gi, Head of E&S Renewables Division (left), who attended the Virtual Power Purchase Agreement (VPPA) signing ceremony held at SK Chemicals' Ecolab, are taking a commemorative photo. Photo by SK Chemicals

SK Chemicals will convert about 10% of the electricity used at its Ulsan plant to solar energy.

On the 12th, SK Chemicals announced that it has signed a Virtual Power Purchase Agreement (VPPA) with SK E&S to introduce renewable energy. The signing ceremony was attended by Kim Ki-dong, Head of Management Support at SK Chemicals, and Seo Geon-gi, Head of the Renewables division at SK E&S.

A Virtual Power Purchase Agreement (VPPA) is a method where solar power plants and corporate consumers trade energy virtually without physical delivery. It is one of the commonly used renewable energy supply methods in the United States and Europe. Through this agreement, SK Chemicals can convert the electricity used at its sites to renewable energy using the renewable energy certificates obtained.

According to the agreement, SK Chemicals will receive 10 MW of solar power annually until 2047, and SK E&S will support the trading of renewable energy certificates as an intermediary.

Using the renewable energy certificates secured through the contract, SK Chemicals plans to replace about 10% of the electricity needed at its Ulsan plant, which has the highest power consumption, with renewable energy. SK Chemicals expects to achieve a greenhouse gas reduction effect of approximately 6,000 tons annually.

Aiming to achieve net zero by 2040, SK Chemicals is focusing on securing clean energy sources to convert 100% of the electricity demand across all its sites to renewable energy. According to the roadmap, it introduced solar power self-generation facilities at its Cheongju plant last year and plans to reduce carbon emissions from power consumption by additionally introducing solar and wind renewable energy.

Kim Ki-dong, Head of Management Support at SK Chemicals, emphasized, "This VPPA contract is an effort and investment to take responsibility for the climate crisis and reduce carbon emissions," adding, "We plan to thoroughly implement the action plan established to achieve net zero."