SK E&S signs PPA agreement with Iljin Group affiliates

South Korea's SK E&S announced on Friday that it has entered into a direct power purchase agreement (PPA) with Iljin Global and Bearing Art, both of which are affiliates of the automotive parts company Iljin Group.

A direct PPA for renewable energy is a contract in which power supply companies directly sell electricity generated from renewable sources.

The company explained that this is the most effective means to contribute to the expansion of renewable energy and greenhouse gas reduction, making it a key step toward achieving RE100 (100% renewable energy usage).

Under this agreement, the two companies will start receiving 60 GWh of renewable energy annually as early as 2024, which will be used in their production and export activities.

It is estimated that this will result in an annual reduction of 27,600 tons of greenhouse gas emissions, equivalent to planting 2.3 million pine trees.

Write to Hyung-Kyu Kim at khk@hankyung.com