KT&G Signs Power Purchase Agreement (PPA) for Renewable Energy to Reduce Greenhouse Gas Emissions

KT&G (CEO Bang Kyung-man) announced on the 24th that it has signed a Power Purchase Agreement (PPA) for renewable energy with Hanwha Solutions' Q CELLS division as part of its efforts to achieve the 2045 Carbon Neutrality Goal.

A PPA is an efficient method for companies to contribute to greenhouse gas reduction and carbon neutrality by directly purchasing electricity generated from renewable energy sources from a power supplier.

Under this PPA, KT&G will receive up to 8.8 GWh (gigawatt-hours) of renewable energy annually for the next 20 years. This will replace 4.5% of its annual electricity consumption with renewable energy, reducing greenhouse gas emissions by an estimated 4,050 tons annually.

In addition to the PPA, KT&G is expanding solar power generation facilities to increase its renewable energy usage. As a result, its renewable energy usage rate has surged from 0.1% in 2020 to 19% in 2023. With this gradual increase, the renewable energy usage rate is expected to exceed 21% in 2024.

Choi Kang-hee, Head of KT&G's Technical Operations Office, stated, "KT&G is enhancing its group-wide efforts to strengthen climate change response capabilities. We will continue to develop and implement carbon neutrality strategies in line with international standards to address global climate change and achieve sustainable management."

Meanwhile, KT&G has gained international credibility for its carbon reduction goals by obtaining approval from the Science Based Targets initiative (SBTi) for its 2030 Greenhouse Gas Reduction and 2045 Net-Zero Goal. Furthermore, KT&G's various greenhouse gas reduction efforts were recognized at the 2024 Korea Energy Awards Ceremony, where it received a commendation from the Minister of Trade, Industry and Energy.

(Photo Description) KT&G has signed a Power Purchase Agreement (PPA) for renewable energy with Hanwha Solutions' Q CELLS division to achieve its 2045 Carbon Neutrality Goal. Choi Kang-hee, Head of KT&G's Technical Operations Office (right), and Yoo Jae-yeol, Head of Hanwha Solutions Q CELLS' Korea Business Division (left), pose for a commemorative photo after signing the PPA.