Hankook Tire Hungary Plant to Replace 20% of Power with Renewable Energy Over 10 Years

Long-term Power Purchase Agreement with GoldenPeaks Capital

Hankook Tire & Technology announced on the 22nd that its Hungary plant has signed a 10-year long-term power purchase agreement (PPA) totaling 430 GWh with GoldenPeaks Capital (GPC), a global renewable energy specialist.

Hankook Tire & Technology Hungary plant. Hankook Tire

This contract is part of Hankook Tire's "Net-Zero by 2050" strategy and has been pursued to strengthen its capabilities in responding to global climate change and to enhance its ESG management.

GPC is a renewable energy company that is rapidly growing in Europe with a focus on solar power generation, and Hankook Tire will receive 43 GWh of solar energy annually from GPC. This is equivalent to the amount of electricity that can be supplied to approximately 28,700 households for one year.

The company expects to replace about 20% of the Hungary plant's annual electricity consumption with renewable energy and to reduce greenhouse gas emissions by 11,007 tCO₂ each year. In particular, by accelerating its energy transition in the European market, where the expansion of renewable energy use across the industrial sector is being demanded, Hankook Tire is projected to further strengthen its business competitiveness.

Hankook Tire is currently pursuing a combination of various approaches at its eight global production sites, including the Hungary plant, by comprehensively evaluating factors such as renewable energy supply infrastructure and power stability, and implementing measures such as purchasing renewable energy certificates and installing in-house solar power facilities.

An official from Hankook Tire said, "Starting with the Hungary plant, we plan to gradually pursue our energy transition strategy with the goal of increasing the share of renewable energy used at our global production sites by 2030 and reducing Scope 2 emissions, which refer to greenhouse gases generated in the energy combustion process, by 46.2% compared to 2019."