LG Innotek inks renewable energy deal with SK E&S

South Korea's LG Innotek Co. announced on Wednesday that it has entered into a 20-year power purchase agreement (PPA) with a domestic energy company SK E&S, a significant step in its mission to source RE100 (renewable electricity 100%) by 2030.

The deal will provide LG Innotek with 10 megawatts of renewable energy annually and is expected to reduce its greenhouse gas emissions substantially.

This direct PPA allows LG Innotek to lock in energy prices for up to two decades, ensuring a stable supply of renewable energy and making a meaningful contribution to curbing the company's carbon footprint.

According to the terms, the first batch of renewable energy will be delivered to LG Innotek's campus in Gumi, North Gyeongsang Province, starting in December this year. There are plans to extend this initiative to other operational sites sequentially by next year.

"Last year, approximately 90% of our greenhouse gas emissions were generated from electricity consumption," an LG Innotek source said. "This agreement paves the way for an estimated annual reduction of 6,000 tons in our greenhouse gas emissions, which is tantamount to planting 900,000 new pine trees."

The company joined the RE100 initiative, a global campaign urging businesses to commit to renewable energy last year. Notably, LG Innotek has set a more ambitious target than RE100's standard 2050 goal, vowing to transition to 100% renewable energy across all its domestic and international operations by 2030.

Prior to this agreement, LG Innotek had already achieved a 22% conversion rate to renewable energy. As part of its roadmap to meet the RE100 objectives, the company has also revealed plans to purchase renewable energy certificates (REC), supplementing its direct PPA strategy to further secure a stable supply network of renewable energy.

Write to Ik-Hwan Kim at lovepen@hankyung.com