Hyundai Motor Group six affiliates to strengthen carbon neutrality

Hyundai Motor Group said on Monday that six affiliates and Hyundai Engineering & Construction Co. signed a memorandum of understanding (MOU) for a long-term joint renewable energy power purchase agreement (PPA) for 2020-2025, totaling 242 gigawatt-hours (GWh) annually.

The agreement involves six affiliated companies in the group's parts, logistics, steel, and finance sectors.

Participating companies include Hyundai Glovis Co., Hyundai Transys, Hyundai Wia Corp., Hyundai Kefico, Hyundai Special Steel, and Hyundai Capital.

Hyundai Engineering & Construction will be an intermediary, connecting these companies with renewable energy developers.

They plan to design and build a renewable energy portfolio through existing power purchases and new projects, offering optimized energy transition solutions tailored to each company's needs.

Under this PPA agreement, Hyundai Motor Group aims to begin supplying renewable energy to the domestic sites of the six affiliates as early as next year to 242 GWh annually by 2030.

This would meet the electricity needs of 66,000 four-person households and reduce carbon emissions by 110,000 tons annually, equivalent to 66,000 compact cars.

Hyundai Motor Group noted the significance of this agreement as the first group-wide effort to expand renewable energy usage.

Write to Jin-Won Kim at jin1@hankyung.com