SeAH Besteel Signs 20-Year Renewable Energy Direct Power Purchase Agreement with Hanwha Q CELLS

Accelerating the Transition to Renewable Energy and Strengthening ESG Management
Securing 16,425 MWh of Renewable Energy Annually

SeAH Besteel announced on July 16 that it has signed a 20-year long-term direct power purchase agreement (PPA) with Hanwha Q CELLS and will begin receiving solar power-based renewable energy from the second half of this year. A direct power purchase agreement allows renewable energy producers and electricity consumers to trade electricity directly, bypassing the power market. This method is gaining attention as a key means for achieving RE100 and carbon neutrality.

Sangbeom Hong, Chief Operating Officer of SeAH Besteel (left), and Jaeyeol Yoo, Head of Hanwha Q CELLS Korea Business Division, are taking a commemorative photo after signing a long-term PPA sales contract. Photo by SeAH Holdings

Through this agreement, SeAH Besteel will secure an additional 16,425 MWh of renewable energy power annually. Including previously secured amounts, the company will use a total of 43,392 MWh of renewable energy. This is equivalent to the annual electricity consumption of approximately 12,000 four-person households in South Korea. The company expects this will reduce carbon emissions by about 19,800 tons per year. SeAH Besteel explained that, since it operates an electric arc furnace production system using steel scrap as raw material, its carbon emissions are significantly lower than those of the blast furnace method, which uses iron ore. The company plans to further expand the use of eco-friendly energy sources in the future to strengthen its ESG (Environmental, Social, and Governance) management.

Hanwha Q CELLS is expanding its market presence through a variety of supply models, including direct power purchase agreements. With this contract, the two companies plan to establish a long-term partnership to achieve RE100. Sangbeom Hong, Chief Operating Officer of SeAH Besteel, said, "As global environmental regulations become stricter, expanding the use of renewable energy will have a positive impact on enhancing corporate value and creating new business opportunities." Jaeyeol Yoo, Head of Hanwha Q CELLS Korea Business Division, stated, "Through this agreement, we are now able to actively support Korean companies in achieving RE100 and carbon neutrality," adding, "We will collaborate with various industry partners to expand zero-carbon power sources and contribute to the national energy transition."