South Korea's SK Chemicals Co. announced on Thursday a virtual power purchase agreement (VPPA) with SK E&S to shift 10% of the electricity used at its Ulsan plant to solar energy, underscoring the firm's drive to adopt more sustainable power solutions.
The deal would enable SK Chemicals to effectively leverage energy certificates, pivoting their operational power to renewable sources.
With this agreement, SK Chemicals will draw an annual supply of 10 megawatts (MW) of solar energy up to 2047. SK E&S, part of the SK conglomerate, will act as a broker, aiding the trade of these renewable energy certificates.
The Ulsan factory, situated in a prominent industrial hub in the southeast of South Korea, is set to witness a significant renewable energy intake. This change is projected to cut the factory's greenhouse gas emissions by around 6,000 tons every year.
This move aligns with SK Chemicals' broader strategy. Committed to achieving net-zero carbon emissions by 2040, the firm had already set a precedent last year by installing solar power systems at its Cheongju facility.
It envisions further reductions in its carbon footprint, eyeing the integration of more renewable energy resources in the coming years.