Hyundai Motor Signs Largest Domestic Renewable Energy Contract... Reduces Greenhouse Gas Emissions by 5.6 Million Tons

20-Year Supply Contract with Hyundai Engineering & Construction and SK E&S
Largest Domestic Deal... Accelerating Carbon Neutral Transition

Hyundai Motor Company has signed the largest renewable energy supply contract in South Korea.

On the 30th, Hyundai Motor announced that it recently signed a power purchase agreement (PPA) with Hyundai Construction, SK E&S, GS E&R, and Enlighten to receive renewable energy for the next 20 years. A PPA is a method of purchasing renewable energy at a fixed price for a certain period.

Going forward, Hyundai Motor will receive 610 GWh of renewable energy annually from Hyundai Construction, SK E&S, GS E&R, and Enlighten for its domestic sites. This amount of electricity is enough to fully charge the Ioniq 5, equipped with an 84 kWh battery, more than 7 million times. Through this, Hyundai Motor expects to reduce approximately 5.6 million tons of greenhouse gases.

In addition to this contract, Hyundai plans to accelerate the transition to 100% renewable energy use at domestic and overseas sites, considering eco-friendly energy supply environments by region.

First, domestically, Hyundai will gradually expand its solar power self-generation infrastructure. This year, Hyundai Motor established solar power facilities with a total capacity of 20 MW at sites nationwide, and plans to install an additional 11 MW of solar panels at the Ulsan electric vehicle (EV) dedicated factory scheduled to be established next year.

For overseas sites, Hyundai will accelerate carbon neutrality implementation by considering geopolitical factors and renewable energy-related policies. Following the factories in the Czech Republic and Indonesia, next year, all electricity at sites in the United States, India, and T?rkiye will also be procured from renewable energy.

A Hyundai Motor official explained, "We will build a diverse renewable energy portfolio not only through PPAs but also by expanding solar power self-generation facilities," adding, "By 2045, we will convert 100% of the electricity used at all domestic and overseas sites to renewable energy and proactively respond to climate change in the future."