Korea Zinc, the world's largest non-ferrous metal smelting company, made its largest investment in the renewable energy sector last year. As the Lee Jae-myung government has recently promoted renewable energy policies, such as the development of energy expressways and RE100 (Renewable Energy 100%) industrial complexes, synergy is expected.
According to the '2024 sustainability management report' released by Korea Zinc, the company invested 566.6 billion won in renewable energy last year. This amount is approximately 12 times higher than the investment of 49.2 billion won in 2023. Korea Zinc has been increasing its investment in renewable energy every year, with a cumulative investment in renewable energy of 1.1 trillion won from 2020 to 2024.
In March of this year, Korea Zinc invested in Hanwha Shinhan Terawatt, a company specialized in renewable energy power brokerage, securing a 33.3% equity stake. Hanwha Shinhan Terawatt is a joint venture established by Hanwha Energy and Shinhan Financial Group. Korea Zinc decided to invest with plans to conduct renewable energy power purchase agreements (PPAs) that directly sell renewable energy to power users. The company believes that once related businesses become fully operational, they can contribute to the government's energy transition initiative.
In August last year, Korea Zinc constructed the nation's first hydrogen charging station for hydrogen forklifts at its Onsan smelter's No. 1 plant. Korea Zinc was selected as the subject of a national research and development project led by the Ministry of Trade, Industry and Energy in 2022, aimed at developing verification technologies for the commercialization of hydrogen forklifts. Following the introduction of five hydrogen forklifts last August, it plans to deploy an additional 25 this year.
Korea Zinc is also actively continuing its investment in renewable energy through its Australian subsidiary SMC (Sun Metals Corporation). SMC constructed the largest industrial solar power plant in the region, the Sun Metals Solar Farm, with a capacity of 124 megawatts (MW) in 2018, achieving 'RE25'. Through the establishment of its subsidiary Ark Energy and the acquisition of the renewable energy developer Epuron, it is advancing toward its RE100 goal.
The McIntyre Wind Farm, in which Ark Energy holds a 30% equity stake, began operations last year. In southern New South Wales, Australia, the Richmond Valley battery energy storage system (BESS) project, the largest in the region, is currently underway.
Korea Zinc is also accelerating its hydrogen business, which is gaining attention as the energy of the future. The SunHQ Hydrogen Hub, a green hydrogen production and charging facility that was completed earlier this year, is currently undergoing test operations. It plans to carry out a pilot project that will produce 140 tons of green hydrogen annually for use in hydrogen mobility. It is also pursuing the long-term 'Korea-Australia Project' to establish a supply chain for exporting over 1 million tons of green ammonia from Australia to Korea.
Korea Zinc is outlining plans to produce so-called 'green metal' with zero carbon emissions by utilizing both domestic and international resources. The company stated that this is expected to create synergy with the renewable energy policies of the Lee Jae-myung government.
Since the appointment of Chairman Choi Yoon-beom, Korea Zinc has been actively investing in the renewable energy sector based on its new business 'Trojka Drive' (renewable energy, resource circulation, secondary batteries), and is recognized as a leading company in renewable energy investment. Through the Trojka Drive, Korea Zinc is also reported to have concretized the roadmap for its long-standing green smelter project, which involves recycling waste generated during the smelting process and resource recovery.