November 21, 2024

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Cha Young-il (left), a vice president at Hyundai E&C's infrastructure investment unit, and Glennmont D&D Solar Holdings Representative Director Paul Jeong pose for a picture at a signing ceremony at the Hyundai E&C headquarters in central Seoul, Monday. (Hyundai E&C)

Hyundai Engineering & Construction announced Tuesday that the company has signed a power purchase agreement with Glennmont D&D Solar Holdings to aid in Hyundai Motor Group’s use of renewable energies.

Glennmont D&D Solar Holdings is a joint venture between SK Eternix and Glennmont Partners, one of the world’s largest fund managers investing in clean energy, based in the UK.

According to Hyundai E&C, the recent deal is a virtual power purchase agreement, which involves no physical exchange of energy. Instead, Hyundai E&C will receive Renewable Energy Credits as part of the agreement and sell them to Hyundai Group affiliates.

“Local companies cannot achieve their renewable energy targets because there is a limited amount of renewable energies produced here. The RECs purchased under the latest deal will help the group’s affiliates achieve their carbon reduction targets,” an official from Hyundai E&C said.

Under the agreement, Hyundai E&C will be provided with RECs until 2048. The amount of RECs or the value of the deal, however, has not been disclosed by the company.

“Starting with the latest deal, Hyundai E&C will help local companies expand their use of renewable energies and achieve RE100,” the Hyundai E&C official said, referring to the global initiative for the world's biggest businesses to operate on 100 percent renewable energy.

In September last year, the construction firm made its foray into the emerging electricity brokerage market and has been supporting affiliates of Hyundai Motor Group, such as Hyundai Motor, Kia and Hyundai Mobis, to achieve renewable energy targets.

Hyundai E&C also introduced Korea's first integrated IT platform for energy trading in partnership with 60Hertz, a local IT company specializing in developing software for renewable energy management.

By Shim Woo-hyun (ws@heraldcorp.com)