(image: Korea Bizwire)
SEOUL, May 3 (Korea Bizwire) — SK E&S Co., an energy unit of South Korean conglomerate SK Group, said Tuesday it will supply electricity generated from renewable energy to German chemical giant BASF S.E.
The two parties signed a power purchase agreement (PPA) in Seoul on April 18.
As per the terms of the agreement, SK E&S will supply electricity generated from renewable energy to BASF for a period of 20 years, starting in 2025.
BASF plans to replace around 16 percent of the electricity required at its South Korean sites with renewable energy by 2025.
This initiative is expected to create a greenhouse gas reduction effect of 900,000 tons by 2045.
SK E&S had previously signed a PPA with the cosmetics giant Amorepacific Group in March last year, which was the first of its kind in South Korea. This was followed by a PPA with SK Specialty Co. in August.
The company aims to increase the capacity of its renewable energy production from the present 3 gigawatts (GW) to 7 GW by 2025.
Ashley Song (ashley@koreabizwire.com)
