Let Renewable Energy Flow between Companies
LG Innotek will join hands with SK E&S to expedite the attainment of its RE100 goals. RE100 is a commitment to use electric power only from renewable energy such as wind and solar.
On Aug. 23, LG Innotek announced that it has signed a direct power purchase agreement (PPA) with SK E&S.
A direct PPA is a contract between a power provider and a company that directly sells renewable energy. It provides a stable supply of renewable energy with no rate changes for up to 20 years, substantially contributing to the company’s reduction of greenhouse gas emissions.
By inking this agreement, LG Innotek will be able to secure 10 megawatts (MW) of renewable energy per year for the next 20 years. The renewable energy purchased from SK E&S will be supplied to LG Innotek’s Gumi plant starting this December. The company plans to gradually increase the number of such sites by the end of next year.
In order to actively respond to the global climate change crisis, LG Innotek has announced a challenging goal of converting 100 percent of the electric power used at all its domestic and overseas sites to renewable energy-based electric power by 2030, 20 years earlier than the target year of 2050.
In the future, LG Innotek plans to further secure a stable renewable energy supply chain by purchasing renewable energy certificates (RECs) as well as signing direct PPAs.