- Hyundai Motor signs direct power purchase agreement with Hyundai E&C to shift to renewable energy in Korean operations
- Hyundai Motor to supply 64 MW of solar power to Ulsan Plant by 2025 through this partnership
- Mid- to long-term global plan to achieve RE100 underlines Hyundai Motor’s commitment to carbon neutrality throughout its entire value chain
Hyundai Motor today signed a direct power purchase agreement (PPA) with Hyundai Engineering and Construction Co., Ltd. (Hyundai E&C) to shift to renewable energy in its Korean operations.
With this agreement, Hyundai Motor will supply 64 megawatts of solar power to the Hyundai Ulsan Plant in 2025. This plan is a part of Hyundai Motor’s global strategy to achieve Renewable Energy 100 (RE100) by 2045.
The direct PPA enables the parties to secure a long-term renewable energy supply. Procuring 64 megawatts of solar power for the Hyundai Motor’s Ulsan Plant will save approximately 39,000 tons of carbon per year, equivalent to absorbing the carbon emissions of 23,000 passenger cars.
“Through signing this PPA with Hyundai E&C, we will accelerate the transition to renewable energy at our domestic sites,” said Jin Taek Kim, Head of Production Support Division at Hyundai Motor Company. “Hyundai Motor aims to build a diverse renewable energy transition portfolio, including the construction of solar self-generation facilities, to achieve our global 2025 RE30 / 2030 RE60 goals.”
RE100 is a voluntary international campaign for companies to source 100 percent of their electricity from renewable energy sources by 2050. In April 2022, Hyundai Motor joined RE100, along with other companies of Hyundai Motor Group, further aligning with Hyundai Motor’s carbon neutrality strategy by annually disclosing progress in the usage of renewable energy for the business.
As part of its RE100 strategy, Hyundai Motor will invest more than KRW 200 billion to build solar self-generation infrastructure at its domestic sites by 2025. The company plans to build 100 MW of solar self-generation on idle sites and build roofs at domestic locations to achieve Global RE30 (30 percent of the global goal) by 2025. By 2030, it plans to cumulatively convert more than 150 MW of solar self-generation and 300 MW of PPAs to renewable energy.
Hyundai Motor’s overseas operations are leading the way in ESG management with a plan to achieve RE100 in 2030, 15 years ahead of the 2045 carbon neutrality target. The company plans to procure 100 percent of its electricity from renewable energy by 2030 in overseas sites.
Globally, Hyundai Motor plans to build a diverse portfolio of self-generation of renewable energy, PPAs and purchase of renewable energy certificates (RECs) in consideration of geopolitical factors and policies/intentions of each location. The company’s Czech Republic (HMMC) and Indonesia (HMMI) plants achieved RE100 through REC purchases in 2022 and 2023, respectively. The U.S. (HMMA/HMGMA), India (HMI), and Turkey (HAOS) plants expect to achieve RE100 in 2025.
