Hyundai Motor Group Affiliates Jointly Purchase Renewable Energy Power

Hyundai Glovis, Wia, and Other Domestic Sites Achieve RE100+

Major affiliates of Hyundai Motor Group have decided to operate their business sites using renewable energy power. By taking the initiative at the group level rather than each company securing power individually, stable supply and demand are expected. This also signals a green light for each company’s planned achievement of RE100 (100% renewable energy use).

On the 21st, Hyundai Motor Group announced that it signed a business agreement for a long-term joint renewable energy power purchase agreement (PPA) with six affiliates in the parts, logistics, steel, and finance sectors and Hyundai Engineering & Construction at the Hyundai Engineering & Construction headquarters in Seoul. The six group companies?Hyundai Glovis, Hyundai Transys, Hyundai Wia, Hyundai Kefico, Hyundai Special Steel, and Hyundai Capital?are renewable energy power consumers, while Hyundai Engineering & Construction acts as a power trading intermediary connecting each company with renewable energy power producers. Hyundai Engineering & Construction operates power brokerage trading and provides renewable energy transition solution services.

According to this PPA agreement, the six affiliates will receive renewable energy power at their domestic business sites for 20 to 25 years starting as early as next year. RE100 is a measure to switch all power used in business sites such as factories and offices to renewable energy like solar power.

Song Doo-soon, Executive Director of Hyundai Kefico (from left), Lee Dae-hyung, Executive Director of Hyundai Special Steel, Lee Dong-hoon, Executive Director of Hyundai Construction, Han Yong-bin, Vice President of Hyundai Motor Group, Moon Byung-seop, Executive Director of Hyundai Glovis, Hwang Yoon-mok, Executive Director of Hyundai Wia Strategy Promotion Office, Yoo Heung-mok, Executive Director of Hyundai Capital, and Gong Ki-won, Team Leader of Hyundai Transys, are posing for a commemorative photo after signing a business agreement for renewable energy power purchase agreements (PPA).
[Photo by Hyundai Motor Group]

The six Hyundai Motor Group affiliates plan to increase supply starting next year and aim to reach an annual level of 242GWh by 2030. This meets the stepwise domestic business site renewable energy transition targets set independently by each company.

242GWh corresponds to the annual electricity consumption of approximately 66,000 four-person households in Korea. Compared to using fossil fuel-based power, the annual carbon reduction amounts to 110,000 tons, which is equivalent to the carbon emissions produced by about 66,000 compact cars over one year.

This is the first time Hyundai Motor Group has promoted a PPA for the renewable energy transition of its domestic business sites. The company explained that it is a meaningful decision as it is a group-level initiative rather than individual company efforts. Previously, Hyundai Motor Group had jointly signed a long-term 15-year PPA with four overseas subsidiaries, including the new electric vehicle factory under construction in the U.S., Hyundai Mobis, Hyundai Steel, and Hyundai Transys.

When multiple companies participate together, bargaining power increases, providing the advantage of securing power more stably than when individual companies participate. Another advantage of promoting this at the group level is that it can increase participation from relatively smaller affiliates. Hyundai Kefico and Hyundai Special Steel have taken their first step toward renewable energy transition through this agreement.

A Hyundai Motor Group official said, "Renewable energy power generation is highly influenced by natural environmental factors, causing high volatility, and prices are steadily rising due to demand exceeding supply, so stable procurement is key. We will continue to accelerate the renewable energy transition through integrated group-level procurement and long-term contracts."

This content was produced with the assistance of AI translation services.