LG Chem Signs First Long-Term REC Contract to Achieve '2050 Net Zero' Goal

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[Asia Economy Reporter Oh Hyung-gil] LG Chem announced on the 24th that it has signed a long-term contract to purchase Renewable Energy Certificates (REC) for 20 years from Korea South-East Power and Samcheonpo Solar Power (10MW) facilities. This is the first case among domestic companies to sign a long-term REC supply contract.

REC is a certificate issued through renewable energy generation such as solar power, and purchasing it allows certification of eco-friendly electricity use and greenhouse gas emission reduction.

Through this contract, LG Chem will secure an average of 9GWh of renewable energy annually for 20 years from this year until 2041. This amounts to a total of 180GWh of electricity, enough to supply 43,000 households for one year, and has the same carbon emission reduction effect as planting 600,000 pine trees.

LG Chem plans to accelerate the transition to renewable energy at its domestic and overseas business sites to achieve net zero (carbon neutrality) by 2050.

Last year, it converted 5% of the total electricity used at its business sites to renewable energy, and this year it will double that to about 10%. In addition to purchasing RECs, it will actively secure renewable energy using various methods such as green premiums and Power Purchase Agreements (PPA).

Yoo Ji-young, Vice President of LG Chem, said, "To leap forward as a global sustainable science company, we are transforming the core axis of our business based on ESG (environment, social, governance)," adding, "We will actively secure renewable energy to achieve net zero by 2050."

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