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Hyundai Accelerates Renewable Energy Goals with New Solar Deal

Photo by Zbynek Burival / Unsplash

Seoul, South Korea - Hyundai Motor Company has signed a direct power purchase agreement (PPA) with Hyundai Engineering and Construction Co. (Hyundai E&C). 

The move is part of Hyundai Motor's strategy to integrate renewable energy into its operations, with a focus on its Ulsan manufacturing plant in South Korea. 

The goal is to align with the Renewable Energy 100 (RE100) initiative by 2045.

Why It Matters:

The direct power purchase agreement (PPA) with Hyundai Engineering and Construction Co. (Hyundai E&C) reflects the global leader's movement toward its net-zero goal. 

Hyundai Motor is aggressively expanding its use of renewable energy to reduce carbon emissions and meet environmental goals.

The Key Points

  • Under the agreement, Hyundai Motor will supply 64 megawatts of solar power to its Ulsan plant by 2025.
  • The company estimates this transition will reduce carbon emissions by approximately 39,000 tons annually.
  • Hyundai Motor has committed more than KRW 200 billion to developing solar power infrastructure at domestic sites by 2025, aiming to achieve 100 MW of solar power generation capacity.
  • The company's global strategy includes achieving RE100 for its overseas operations by 2030, 15 years ahead of its 2045 carbon neutrality target.

What They Say:

Jin Taek Kim, Head of the Production Support Division at Hyundai Motor Company, said: 

"This agreement is a significant step in our transition to renewable energy in our domestic operations." 

He added that the PPA aligns with Hyundai Motor's global goals of using 30% renewable energy by 2025 and 60% by 2030.

What Comes Next:

Hyundai Motor will focus on building a comprehensive renewable energy portfolio. 

This includes developing its generation capacity, securing additional renewable power through PPAs, and purchasing Renewable Energy Certificates (RECs). 

The company's Czech Republic and Indonesia plants have already achieved RE100 in 2022 and 2023, respectively. 

Its facilities in the United States, India, and Turkey are expected to achieve this goal by 2025.