SEOUL, Oct. 19 (Korea Bizwire) — Top 30 South Korean companies vowed Wednesday to push for increasing energy efficiency by 1 percent each year over the next five years to better cope with high energy prices and to ensure sustainability, the industry ministry said.
Samsung Electronics Co., Hyundai Motor Corp., LG Chem Ltd., POSCO and other major companies signed an agreement with the government, which establishes their energy-saving goal from 2023 through 2027 and offers various state incentives to support the efforts, according to the Ministry of Trade, Industry and Energy.
Under the “KEEP 30″ agreement, or the Korea Energy Efficiency Partnership, the companies also pledged to reduce 520,000 tons of oil equivalent (TOEs), or 400,000 tons of liquefied natural gas, from October through the first quarter of next year by replacing old facilities and improving the production process, the ministry said.
Ten major steelmakers, in particular, will earmark around 420 billion won (US$295.52 million) combined to build or expand energy-saving facilities.
Of the amount, 210 billion won will be used to establish a coke dry quenching system, which uses a waste heat over the course of steel production, according to the ministry.
The government will assess their achievements on a yearly basis and offer supportive measures accordingly, such as extending loans for the establishment of related facilities and conducting research and development projects that meet corporate needs.
“The goal of the 1 percent improvement is far from easy to achieve, but it is the path that we must take in order to make our industry structure highly efficient,” Industry Minister Lee Chang-yang said.
“The government will increase its support to minimize the burden on the companies in carrying out the pledges.”