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The rooftop solar power arrays installed at the Changwon plant. / Photo courtesy of Hyosung Heavy Industries

Hyosung Heavy Industries is strengthening the low-carbon production architecture at its Changwon plant by introducing a solar Power Purchase Agreement (PPA).

On May 28, Hyosung Heavy Industries announced that it will implement a PPA structure at its Changwon plant starting this month. In addition to its existing 5.3MW on-site solar self-generation facilities, the company will secure 1.6MW of solar power from an external power generation operator. With this agreement, the Changwon plant's renewable energy consumption will expand by approximately 30% compared to its baseline self-generation capacity.

A PPA is an energy procurement mechanism where a corporation executes a direct contract with a power producer to purchase renewable energy. Hyosung Heavy Industries will secure solar energy from the Taean Solar Farm through Encored, a renewable energy platform enterprise. The framework allows a corporation to secure a long-term, stable supply of eco-friendly electricity without the burden of building and operating separate power generation infrastructure independently.

Hyosung Heavy Industries anticipates that this agreement will yield a greenhouse gas reduction effect of approximately 966 tons annually. This reduction is equivalent to the annual carbon dioxide absorption capacity of roughly 146,000 pine trees.

By leveraging both its on-site solar infrastructure and the new PPA, Hyosung Heavy Industries intends to accelerate the transition to renewable energy at its Changwon plant while proactively responding to tightening global eco-friendly supply chain requirements.\

                                                                                                            Lee Seo-yeon