NEWS

HD Hyundai Heavy Industries has begun full-scale efforts to achieve its “2050 carbon neutrality” goal by securing renewable energy — an eco-friendly power source — in cooperation with a regional power generation public corporation.

On Tuesday the 16th, HD Hyundai Heavy Industries signed a “Cooperation Agreement on Renewable Energy Supply” with Korea East-West Power at HD Hyundai Heavy Industries’ headquarters in Ulsan, with President Noh Jin-yul of HD Hyundai Heavy Industries and President Kwon Myung-ho of Korea East-West Power in attendance.

Key elements of the agreement include △supplying renewable energy and supporting the achievement of carbon-neutrality targets, △cooperating on renewable energy projects and responses to related systems and regulations, △expanding shared growth with the local community and social-contribution activities.

Based on the agreement, the two companies plan to pursue a renewable energy power purchase agreement (PPA). A PPA is a contract method in which a renewable energy supplier and user trade electricity directly at a pre-agreed price.

Through a PPA, companies can stabilize the procurement of renewable electricity from sources such as solar and wind power, without going through the power market.

HD Hyundai Heavy Industries is aiming to sign the contract with Korea East-West Power by the end of this year. Once concluded, it is expected to become a leading case of the largest-volume and longest-term renewable energy supply agreement between a private company and a public power generator.

Kwon Myung-ho, President of Korea East-West Power, said, “This cooperation is the first case in which a large company in the same region directly procures renewable energy produced from rooftop solar facilities in the Yeongnam region that Korea East-West Power developed itself. It will serve as a turning point in fully initiating the use of distributed energy within the region.”

Noh Jin-yul, President of HD Hyundai Heavy Industries, said, “This agreement marks the first step in a mid to long-term partnership for expanding renewable energy and realizing carbon neutrality. Going forward, we will continue to increase our use of renewable energy, respond proactively to the global eco-friendly paradigm, and strengthen ESG management.”