Steelmaker SeAH Steel announced on the 16th that it has signed a 20-year long-term Power Purchase Agreement (PPA) with renewable energy solutions company Hanwha Qcells to receive solar power renewable energy starting in the second half of this year.
A Power Purchase Agreement is a method by which electric consumers and renewable energy generators directly trade electricity without going through the existing power market. It aims to fulfill RE100 (100% renewable energy usage) and achieve carbon neutrality.
Through this contract, SeAH Steel will secure an additional 16,425 MWh of renewable energy annually, bringing its total to 43,392 MWh sourced from renewable energy. Last year, it secured 26,967 MWh of renewable energy through SK Innovation E&S.
SeAH Steel produces steel products using four electric furnaces based on scrap without a blast furnace. In March of this year, it specified in the previous year's business report that "significant industrial electricity cost increases and other factors are expected to hinder the achievement of business goals."