LG Chem announced on Sunday that it had signed a 20-year long-term purchase contract for renewable energy certificates (REC) at Samcheonpo Thermal Power Plant with Korea South-East Power to ensure a stable supply of renewable energy.
This deal makes LG Chem the first Korean firm to enter into a long-term REC supply agreement.
A REC is a certificate that is issued as a result of the generation of renewable energy. Companies that purchase the certificate are certified for using environmentally friendly electricity and reducing greenhouse gas emissions. As governments around the world lay out emission reduction plans, corporate demand for REC has increased.
