SK Group steps up Net Zero transition with landmark renewable energy deal

SK Group is making strides toward achieving its carbon neutrality goals by having its affiliates sign a direct power purchase agreement (PPA) for renewable energy with its energy firm SK E&S Co., marking the largest-scale agreement of its kind in South Korea.

The conglomerate announced Friday that nine of its affiliates inked contracts for direct PPA with SK E&S, aimed at procuring renewable energy.

The direct PPA model involves companies directly purchasing electricity generated from renewable sources, enabling contributions to the expansion of renewable energy and greenhouse gas reduction. It stands as a pivotal method for achieving Net Zero and RE100 commitments.

The nine participating affiliates are SK telecom, SK siltron, SKC, SK C&C, SK materials, SK biopharmaceuticals, SK gas, SK broadband, and SK bioscience.

The total contracted capacity stands at 537 gigawatt-hours (GWh) per year, equivalent to the energy required for about 190,000 households over a year.

Among these, SK materials, having previously entered into a 65 GWh PPA with SK E&S last year, secured the highest capacity in the latest agreement at 171 GWh.

Under the agreement, the nine companies will receive renewable energy generated by SK E&S through solar power plants for their major facilities and data centers starting from 2026 and continuing for 20 years.

Their transactions are expected to reduce cumulative greenhouse gas emissions by 5 million tons, equivalent to planting about 20 million pine trees.

SK Group has set an ambitious target to achieve Net Zero ahead of the global carbon neutrality milestone of 2050, engaging in investments for carbon reduction and the expansion of renewable energy sources.

With an aim to expedite its journey toward Net Zero, SK Group plans to utilize next-generation eco-friendly technologies such as Carbon Capture, Utilization, and Storage (CCUS).