Hyundai Construction Signs Power Trading Agreement
Starting with 10MW in 2025, Gradual Expansion
L&F Annual Power Usage at Approximately 35%
Mid-sized cathode material manufacturer L&F announced on the 28th that it will collaborate with Hyundai Construction to receive 85MW of solar renewable energy annually for 20 years starting in 2028. This measure aims to achieve the RE100 (100% renewable energy transition) goal and respond to customers' mandatory renewable energy usage requirements.
On the previous day, L&F signed a business agreement with Hyundai Construction at its headquarters in Daegu for a Power Purchase Agreement (PPA) for solar renewable energy. A renewable energy PPA is a method where companies directly purchase energy from renewable energy power producers, serving as an important means to achieve RE100 and carbon neutrality goals.
On the 27th, at L&F's Daegu headquarters, Namwon Park, Executive Director of L&F (left), and Youngil Cha, Executive Director of Hyundai Construction, signed a solar renewable energy power trading contract and took a commemorative photo. [Photo by L&F]
According to this PPA business agreement, L&F will start with 10MW in 2025 and gradually increase the scale to receive 85MW of solar renewable energy annually for 20 years from 2028, supplied by Hyundai Construction as the intermediary. This corresponds to about 35% of L&F’s electricity usage in the past year. Although the proportion will decrease as the volume increases, the absolute amount of renewable energy power will be sequentially increased. Economically, this also helps improve profitability by reducing costs compared to using electricity from Korea Electric Power Corporation.
L&F stated, "Domestic and international customers require the use of renewable energy as an essential condition when receiving product deliveries," adding, "The company has established a mid- to long-term response plan and intends to implement it in the most efficient and economical way." L&F is considering using green premiums, adding self-generation facilities, and third-party PPAs starting from 2025. It will continuously secure renewable energy to achieve RE100 by 2030.
Namwon Park, Executive Director of Strategic Planning at L&F, said, "This PPA signing demonstrates L&F’s commitment to achieving RE100," and added, "We will continue to strive to respond to renewable energy transition and secure mid- to long-term sustainability."
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