SK Specialty, a subsidiary of Korean conglomerate SK Materials, has signed a 20-year power purchase agreement (PPA) with South Korean natural liquefied gas (LNG) supplier and renewable energy company SK E&S, a unit of SK Materials.
Under the contract, SK Specialty will buy electricity from 50-MW renewable energy assets located in South Korea's South Chungcheong Province from 2024 to 2044 at an undisclosed price. It’s the largest renewables PPA ever signed in South Korea to date.
SK Materials added that its other subsidiaries such as SK Trichem and SK Materials Performance may shortly follow with similar deals.
SK E&S and Seoul-based beauty products supplier Amorepacific signed a 20-year power purchase agreement (PPA) in March. The energy company will supply renewable electricity to Amorepacific from a 5 MW renewable energy plant operated by SK E&S at an unspecified location. It’s South Korea’s first renewables PPA.
South Korean government intends to power the nation with 100% renewable energy by 2050 under its K-RE100 initiative.
In 2021, the Ministry of Trade, Industry, and Energy (MOTIE) of South Korea allowed domestic electricity consumers to buy renewable power through power purchase agreements (PPAs). The state-owned Korea Electric Power Corp. (Kepco) serves as a middleman between electricity purchasers and sellers.
